Monday, January 5, 2009

New Year's Resolutions


You may have some personal new year's resolutions; do you have any resolutions for your business?

One item I'd wish every business owner would resolve is to take a bit of time each month and work out some basic statistics for the business: cost of goods, monthly gross sales, gross margin. These are the fundementals you have to know as long as you run your business. Thinking of taking on a new account? How will it affect your stats? (it could cost you more to obtain and service a large, low margin account than you can make on it...but how would you know if you don't track those types of numbers?)

When you resolve to do something, don't just say it: have a plan to achieve it. And by plan I don't mean like the business plan you worked up when you opened the business (and then stuck in a drawer the day you received a loan)...

If you want to track monthly sales, I would hope that is at hand. But since it is so easy to work day-to-day, you might not look at them. Worse, you might be asking yourself "How did I sell $X and still have no money in my pocket?" If you are not watching those numbers, no one else will also.

No comments: