While out at dinner with a fellow business owner I began sharing why I believe the numbers are such an important part of building a profitable business.
She didn’t see why I thought the numbers were so important because she said, “The numbers just aren’t sexy.”
You may be thinking to yourself, “Right, I don’t like numbers either!”
I realize not everyone loves numbers but I’ll tell you what’s really not sexy—being broke!
While you don’t have to love numbers as much as I do you do need to know some key financial stats if you want to grow your business.
I get it – looking at financial stats may not be as fun as hanging out on Clubhouse, watching (or making) Instagram Reels or binge watching your favorite show on Netflix but you can’t afford not to do this.
At a minimum, you should know and review (at least monthly) what I call the “big 3” – revenue, expense and profit. During that time I would also suggest looking at your pricing as well as your sales conversion rate.
This monthly financial review can help guide your business decisions, strategic plans and resource allocation for the remainder of the year.
Plus, it’s a lot easier to hit 6 or 7 figures when you know what’s happening with your “big 3”. This monthly review is not only about financial results. It should include an evaluation of all business areas – team, systems, products and/or services, and industry/marketing trends.
And, it’s an opportunity to celebrate your wins (big and small) for the past month and past quarter!
Whether you’ve completed your goals for the remainder of the year or not, doing a monthly (and quarterly) review can be very insightful and eye-opening. Don’t guess about what is and isn’t working, let the data and results speak for themselves.
What’s one thing you’re celebrating this month or quarter in your business?
