I am not the numbers gal. A successful business to me has not been about spreadsheets and data every day. But as your business grows, and as you have bigger and bigger goals tracking your numbers becomes essential.
To help me and my team scale our business we knew we needed help us track numbers, predict sales, and make attainable goals.
Like most people in my audience, I’m a natural creative and NOT a stickler for numbers. After working on financial metrics for over a year we now have a sound grasp on what we sell every single week, where our biggest profit opportunities are, and how to plan our year based on how things are trending.
But you have to get started with the basics...
As entrepreneurs, generally we all have a natural tendency to be on the creative side. Our dreams and big ideas for the future fuel our motivation. What happens often is that we get lost in the big picture, and forget about the financial metrics that are important to growing your business. In the world of business, no amount of passion can keep a business running if there is no profit.
The good news is, you can’t teach someone how to dream big, be passionate or be creative, but you CAN teach financial metrics.
3 things that are crucial to track as a business owner
This is really important. You may be thinking, “obviously I don’t forget to track my sales!” But do you really? Do you check on a daily basis what has been sold? Do you monitor what sells like hot cakes versus what doesn’t? Are you aware of what exactly you need to sell to reach your goals? You need to have an intimate relationship with your bank account, and knowing what is going on is REALLY important.
You always need to know what your net profit is, and how it is trending month over month and year to date so you can look at the finances of your business objectively. This will allow you to easily identify spikes or drops in revenue and course correct if you need to. When you can see that and anticipate what could happen, you’ll be running a more stable and solid business.
Size of your list
Why would the size of your list be on your priority list next to sales and profit? Doesn’t seem AS important, does it? Let me tell you why it is… The people on your list are “hot leads.” These people are going to be the ones who DO buy from you. They’re the people who you need to really focus on. Your list is important to build because it is a fast-pass to not only knowing exactly who your audience is but a one-way ticket to reaching the people who want to buy from you. Grow your list with the RIGHT people, and you’re likely going to grow your business and your sales.
If you’re running a small business and numbers feel scary, start by getting comfortable looking at your bank account every day. Even a task as simple as this can seem daunting especially when you’re not going to like what you see. But it’s absolutely essential to turn things around and thrive!