How Often Do You Look At The Numbers?
Whenever I have a coaching call with a member, I always make sure to ask about the numbers. What is your revenue to date? How does that compare with your projections? What new business is in your line of sight? Are you earning a profit? If not, what expenses are you planning to cut? And I am met each and every time with: “I knew you were going to ask me that.”
I’M LIKE THE NURSE WHO STANDS THERE TO MAKE SURE YOU SWALLOW THE MEDICINE. YOU KNOW YOU HAVE TO TAKE IT, YOU JUST DON’T WANT TO DO IT.
So why do I persist?
As we head ever faster towards the end of the year, financial questions are going to loom larger and larger in our minds. How much money will I make this year? If you have a team, will there be end-of-year bonuses? And if so, how much? You have to have a clear sense of your financial picture before you can make any of these decisions.
Without giving away too much detail, Fred and I do this every month. We look at how the last month went and what we project for the next few months then we have a pretty frank conversation about what needs to be cut and where we should invest in growth.
It is never a fun conversation because the truth is there is always more that we want to do. As any business owner will tell you, there are never enough resources for everything.
But if you don’t have the conversation, you are really shooting in the dark. So don’t make the mistake of hiding your head in the sand and pretending financials aren’t important. The only way to truly have control of your business is to have control of the financials. Make it a part of your monthly routine and just swallow the medicine.