Every business owner needs to know how their business is performing whether it’s good or bad, we all need to know where we stand. It amazes me how many businesses wait until months after their year end to see how they have performed that year, closing the stable door after the horse has bolted comes to mind.
I believe that for a business to prosper financially, it needs many things, up-to-date accounts information, reliable internal business data, time and luck. Having these gives you the power to control and plan where your business goes in the future. This is the business you may have started from nothing or spent your life savings to get started, don’t let all your hard work go to waste by not planning the strategic direction the business should take.
Within the business world in general, there is no substitute for information. Whether it’s more knowledge of your competitors, a little market research on what people want to buy and what you can possibly sell, it all helps. But the number one, most important, branch of business intelligence you can have is about you and your internal figures.
Knowing what you owe, what you are owed and data such as that is essential to the success of your business. You say…’sure, I know that off the top of my head’ You may know it this month but you need an application to give you this knowledge over time, allowing you to build up banks of information to compare, making decisions easier and more importantly faster. Having clear key financial indicators for your business that you can compare with actual financial information allows you to make better informed decisions. For any business selling a product consider the following questions? Do you know your margins, gross profit %? Net Profit %? Am I on track how does it compare against targeted/budgeted figures?
Ask yourself these three questions;
- Do I get regular up-to-date accounts information and reliable internal data on my actual financial accounts /finances? Yes/ No
- When do you get an update on your financial accounts / finances? Monthly /Quarterly/ Annually?
- If I have more up to date information can I make better decisions? Could I improve my profits or possibly save money? If yes change it today.