Have you ever sat down and wondered why your business isn’t growing to it’s full potential? You keep investing money in marketing, you’re trained and re-trained your sales team but when you look at your bank account you’re still not seeing much growth?
I can almost guarantee you that if you’re asking these questions you are lacking Visibility.
What do I mean by Visibility? This is the one thing that every business owner must have without question. Have you ever heard the saying “It isn’t how much you make but how much you keep”? This can’t be more true for the success of a business. Reviewing reports such as a Profit and Loss on a weekly, semi weekly or at minimum monthly basis gives you the ability to see how much money you are actually spending and how much money is actually coming in! If you do not review this report you will NOT know how well or how bad your business is doing. Your bookkeeper or accountant can provide you with these reports and help you analyze where to cut cost yet keep the same amount of productivity your business needs for growth.
Visibility also helps you analyze your profit margins. Profit Margin is the percentage your business keeps
for every dollar in sales. For example, if you made 1 dollar (sale) and it cost your business .80 cents to make that dollar then you have a .20 cent profit or 20% profit margin. The importance of knowing this figure is crucial for the growth of your business so you can analyze how much of an investment you need to obtain that 20% margin and make more money. The lack of visibility means the lack of knowledge of your margins and as a result you can easily be diminishing your profit hence the low bank balance.
I urge you to make a habit of reviewing your financials, this will change the way you run your business and bring growth to it.