I know you have heard it – you must take care of your business finances.
But it is not exactly the world’s most exciting thing to do!
It is easy to put off doing it in favor of other more exciting things, like writing your blog, working with clients or organizing your file cabinet!
Yet if you do spend some quality time with your finances, you might be amazed at what you learn! (Text copy of the steps are also below the video!)
If you don’t track your finances, it is kind of hard to tell how you are doing. Without spending the time to know your numbers you really have no idea if you are even making any money. Cash in the bank does not mean you have a profitable business.
When you are watching your financials, you will see trends faster. Is your margin getting lower? Are revenue decreasing?
You will only know this when you pay attention. When you do catch an issue early, you can figure out why it is happening before it is too late! This one thing alone could save your business from failing.
By paying attention to what sells the most you can take steps to create more products or services around that area.
Likewise if all your customers say they want a particular service, but they don’t ever buy anything in that area, then you know it is time to dig deeper into why they are not buying, before you create any new products or services.
While paying attention to the money part of business is not always fun, it is important to running a thriving, successful and professional business!
Need help figuring out what you need to be tracking or even how to start tracking? Check out this article on the three finance metrics all businesses should be tracking!