Believe it or not, many owners do not know their financial story. Often they depend on their bank account balance as their only means of determining where their business stands. This is unfortunate because so many answers to how the business is doing and where it is headed can be found in your financial story by looking at financial reports regularly. In fact, a business that looks at their financials monthly will be 80% more successful than those who only review them annually.
Let’s start with this… Do you know what segment of your business is most profitable? It may NOT be the one that brings in the most revenue. If you are not looking at your business by segment or by job and analyzing for profitability, you could be in for a surprise. Some call it job costing, others call it ABC (Activity Based Costing). Whatever you call it, it TELLS YOUR STORY. If you are not doing it, you could be wasting thousands of dollars and/or lots of manpower on a part of your business that is not profitable.
“You are never too old to set another goal or dream a new dream” — C.S. Lewis
There are so many items you should be reviewing your financial reports to understand your business’s financial story. Is your financial story a fairy tale, comedy, drama or horror story? Or worse yet, a mystery because you are unaware of what your story is?
Take the time to figure it out. And if it’s not a fairy tale yet, contact me and let’s talk about formulating a plan to rewrite it.