So, how’s business?
It’s a question I get asked a lot, and I’m sure you do too. It can be a tricky one to answer, and it got me thinking. How do we know how the business is doing if we are so immersed with the running of it? Luckily, I know a great bookkeeper 😉.
No, seriously it can be tricky, but it’s probably the most critical question that as a business owner, you should know the answer. So many business owners use how busy they are like a barometer to how they are doing, is that such an odd way to quantify it? I think when you’re busy and in the thick of the action, so to speak, it’s the only the way.
Of course, it’s not a great way to work out how you’re doing, it’s fraught with possible errors none more so than it doesn’t include actual numbers. Being busy is great, as long as it’s good busy. It can be so easy though to just sort the day-to-day issues and not think about the bigger picture, the numbers.
It is essential to know your numbers, have a plan in place to keep the books as up to date as possible, sometimes little and often works best. Try and make sure that’s in place right at the start and then take regular time to understand what they mean, look for trends, sometimes the answers to why something isn’t working can be right under your nose.
Your brilliant at what you do no doubt but just make sure you have the numbers covered, you won’t regret it, and when someone asks you how it’s all going, you’ll know the answer for sure. Good luck.