I have noticed business can operate the same way. I train many business owners on how to build their business by numbers. At first they are always nervous and a little bit overwhelmed as they tackle the math of their business. Questions like, “What’s the difference between Gross Profit and Net Profit?” “What is break even?” or “What are the most important numbers for me to be watching?”
At first pass these questions can seem foreign and overwhelming to business owners. The initial feeling is to go back to business as usual doing what they know how to do: their craft and hope all that numbers stuff works out by the end of the year when they sit down with their accountant to figure their taxes! Unfortunately, the numbers in business don’t work themselves out, and it’s usually a much bigger mess at the end of the year because they didn’t address the numbers earlier.
Running your business by the numbers will move you quickly from surviving your business to thriving regardless of the economy or competition you are dealing with. If you’re frustrated with unaccountable or inconsistent employees, your numbers will take the emotion and headache out of management and your employees will be happier too as they know exactly what to expect and how to win. Your numbers will take out all the guesswork, frustration, and wasted money on marketing because you will know exactly what marketing is generating a good return on investment and what campaigns need to be kicked to the curb.
It has absolutely skyrocketed financial profitability while saving the average business owner 25%-35% of his valuable time managing all of the elements of his business.
I know by asking one question if a business is running by numbers or by sheer heavy lifting. I can also see the toll the business has on its owner physically and emotionally when they are running their business on their gut feelings instead of the numbers. It’s hard to watch.
If you want to look at how to simplify your business leveraging numbers, email us or call us and let’s look at it together. It really is easier than you would think, just like matching the colors with numbers!
Here’s to your new masterpiece!
Chad Harward – Business Analyst