Pay Attention – Numbers Don’t Lie

Pay Attention – Numbers Don’t Lie

In a sluggish economy every decision you make can have a huge impact on your business.  But what information are you basing those decisions on?

Successful owners know you can never have maximum control without timely access to strategic numbers you clearly understand.  To do that you need both financial statements as well as key statistics that track critical outcomes and productivity.  By understanding these numbers, you can better manage cash flow, make quick course corrections, and much more accurately forecast future growth potential.

Here are a few pointers…

  • Numbers should drive most of your business decisions. If you’re not reviewing them regularly, you won’t know whether you’re failing or growing.
  • Keep up with bookkeeping and create accurate financial statements – EVERY MONTH. Waiting long stretches of time to check revenue and expense entries makes it more difficult to correct errors and may cause you to miss other problems in your business, like slow collections or overspending within the company.
  • Research and choose Key Performance Indicator categories that are critical for your industry and start measuring them in your company to determine areas for improvement. If there are too many options, start with one area and build on it.

I know you’re busy and there are lots of reasons for ignoring numbers. But trust me – all those reasons are bad, especially in an economy that is struggling.  If you know you can do a better job in this area, pick one action step, today, and move forward.  It will make a huge difference as you navigate the coming year.