Learn how to better control the finances
Business is all about making a profit, so if your business strategies aren’t adding up to business profits, don’t do it, or do it differently.
Business should be, ‘a commercial, profitable enterprise that can work without you’- your business must give a good return on investment plus a full wage for every hour you spend working in your business right! You can then pay someone to do your job and the business profits are not affected.
The quotes ‘if it doesn’t add up, don’t do it’ can be applied in many areas of your business. Sales & Marketing is a prime example. If your current Sales & Marketing activities do not generate enough sales and profit, there is no point keep doing it. You are just wasting precious time and money. Change the campaign and or your target audience.
Increasing your team must also add up in pounds. Perhaps a business should consider putting some systems and processes in so that new team members can follow the systems and processes that have been tried and tested, freeing your time-up to focus on the strategic business goals and objectives.
If you want to buy a business the figures must add up too – or have the potential to do so. Make a list of the things that are strategically important for the business to achieve, and then commit yourself to achieving them. Many people buy into something believing it would fulfil their needs, only to discover the figures were inaccurate or did not add up. If you are not sure, get help. Two heads are better than one, and prevention is better that cure.
A great idea when looking at a business is to check the industry average and see how your business might compares. Given that many businesses fail in the first five years, you may want to ensure that you and your business have a better chance of surviving. I never met anyone who plans to fail.
Finally the bottom line your figures must add up is in net profit margin terms or your desired profit or ROI may not be achieved. ‘If it doesn’t add up, don’t do it” must be applied regularly in business.
Don’t wait until the end of the financial year to find if you have made a profit. Business is work, but it should also be fun. Enjoy your business and beat the odds.