We're Making How Much!?Recently I did a presentation on why knowing how your business is performing is important for its success.
One of the examples I gave was of a business I had worked with that was profitable, had cash in the bank and was “happy” to have its Accountants produce the accounts once a year, delivered 3 months after the year end.
This meant that the first time they could see how successful the business was 15 months after the financial year started.
Imagine in your personal life if somebody coming to you now and saying “that thing you did in March 2017 was really good, you should do more of that”, or “that decision you made before the last election actually cost you a lot of money, I hope you have stopped doing it”.
After pulling together some up to date figures for them I could show that although they made a profit, one part of the business was much more profitable than another, and it was the least profitable part of the business where they were directing all their attention.
Once I’d given them this information, the mechanism to get it on a monthly basis and other KPI’s as when they needed them, they were then able to make much more informed decisions and were able to direct their efforts where they had most effect; turning a profitable business into an even more profitable business.
The modern world is data rich and if you don’t harness your own data and get the most out of it, then that may let someone else in and steal a march on you.
11th June 2018