Know Your Numbers, Grow Your Business!
I have spent a lot of time during the last few months going to events which are put on in an effort to encourage business owners to find ways and means to learn how to grow their business. One of the common threads that I keep hearing is that you need to “know your numbers” in order to grow.
Many people that I talk to are not quite sure what that means, let alone, how that is going to help them. I think that if you know how it will help, you can then be more inclined to work on the how … (which is a topic for another day!).
So .. you have taken some simple and easy steps (or maybe they were hard … giggles) and you now have a way to track the money that is coming in the proverbial door. The next step to that would then be to come up with an easy and simple way to understand what you are spending your money on (and this should be very specific and detailed).
Congratulations you have just done bookkeeping and math!
So in front of you is the amount of money you make and the amount of money you spend. Do they match? Are you making more than you are spending? Or like most people, are you spending more than you are making?
If you answer yes to spending more than you are making, you then know that you need to make more money so that you can have some left over for the spending. That then leads you into figuring out either other streams of income or how many more clients or sales that you need, to make ends meet and have more money to do the things that you want to do.
But at least now you know … less stress than the guess!!!