Sometimes you have a hunch that business isn’t going right. The cash in the bank is not building as it should. Customer numbers seem down. Yet you seem to be adding more staff.
Something just doesn’t feel right….but your intuition usually is right….
At times like this, you just need to sit down and crunch the numbers.
It doesn’t matter whether you have some fancy software or a pen and paper. All work as well as each other, as long as you set the time aside to work through the figures. To find trends or blockages. Or costs that have got out of kilter. Percentages such as gross profit and net profit allow you to get a handle on how the business is performing. Mapping forward likely revenue (income) and costs helps you see where you might end up…
None of this is rocket-science in running a business but it’s easy to overlook – as you get caught up in the day-to-day running of it.
Tomorrow is a Friday. Take out a pencil and paper and start to jot down your revenue to date and costs to work out your profit (or loss) for your financial year so far. Then take it from there.
Poke. Prod. Challenge yourself and your business to do better over the next 12 months.