If you don’t really read your books correctly, how can you know your financial strategy for your business growth is on track?
I know a lot of folks, they see reports that come out, financial reports, and they think, “Oh, my god. Look at all these numbers. This is crazy. I don’t want to look at it. It doesn’t mean anything to me. There’s all these numbers.” It sort of makes me think, because this is a natural thing that I do. I work with numbers all the time. I work with a lot of different types of businesses, different industries. I look at somebody’s books, and I see, and I encourage my clients to see their books as a story, as the story of their business. I think one of the takeaways is every one of those numbers that you look at on your reports, it has some human story behind it.
Print out your reports, print out your profit and loss, and take a look at one of those numbers. Just think about it for a second. Think about the decisions that came into play to make that happen. Let’s say travel. You see a number. Maybe you see $5,000, and great. Whatever. But at some point, you had made a decision to spend $5,000. Now, hopefully, you made a decision well before that point so that you had a strategic reason to do that, you thought about your return on investment. But this sort of leads me to the idea that a lot of businesses have a story that is going on in their business itself, but it’s not reflected, that story isn’t reflected on their books.
I think it’s a really key point is that when you print out or take a look at your financial reports, your profit and loss, that’s one that’s really straightforward and easy to think about. If you’re looking at that report, and you’re not seeing your business, you’re not seeing, for instance, everything that I’m doing, for instance, everything that I’m doing to attract new clients is altogether, and so I can see my multiple different strategies that I’m using to bring clients into my business.
Really, if you’re not seeing your strategy reflected in your books, if it’s not clear, if you’re not looking down every one of those categories and subcategories, which are incredibly important, and you’re not saying, “Oh, that’s right. I remember. I remember that I wanted to bring in five clients a month, and I realized that it was going to cost $600 per client to do that. I also realize,” for instance, “I need to do networking, so I’m involved in maybe the chamber, a few different professional organizations.” You also had, as a separate category, marketing. Maybe another category as advertising. Another category as discounts. All these things. Travel. You have your travel. You have your meals, and you have a very specific reason why you have them broken out the way they are.
Your books are absolutely solid gold, especially if you’ve been in business for a significant amount of time, and even more so if you’re profitable, and even more so if you have a complex business.
Let’s get you together with me, Steve Merager of Merager Financial Solutions, and really take a look and see where you are, see what your business is really trying to do. You have … If you’re successful, you’re a thoughtful, intelligent person, so you’ve gone through, and you’ve thought about this. It’s important to reflect those decisions that you’ve made that are so, so critical and helpful for your business. See them all in one place. That’s the solid gold of your books.
If you’d like to do that, we can spend half an hour as freebie, and we can take a look at your books. I can essentially guarantee that we’ll find something, and you will walk away with a smile. I’m Steve from Merager Financial Solutions. Give us a call, give us an email, and we’ll help you out.
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