Make sure your business is on track to make a profit and stay profitable by setting guidelines that you can use to measure your business performance.
1. Your mission statement — is your mission statement clear and does it reflect your current activities? Honestly assess the services you provide and the products you sell. Make sure those are in line with your mission statement?
2. Your accounting and bookkeeping system — does your system match your accounting and bookkeeping needs? If you’re able to keep receipts and all transactions in order, great! If not, consider hiring an accountant or bookkeeper to help with the day to day activities and the strategic planning activities. See the accounting services page on my website and let me know if you’d like a free consultation.
3. Your production — are you producing efficiently? I work with small web design companies and creative businesses need to know if the time they spend on projects is worth the total amount being charged. Manufacturing companies need to prevent equipment breakdowns and churn out products regularly.
4. Your marketing and sales — how much does it cost to obtain one customer? Are you going to existing customers and asking for referrals? If your marketing efforts are going along well then you should have a steady flow of revenue.
5. Your projections — are you aware of what may impact your industry in the coming year? If you’re prepared for changes, then you’re in good shape.
Each month, take a brief amount of time to evaluate your business against:
- Mission statement
- Accounting and bookkeeping
- Marketing and sales
Investing a brief amount of time to evaluate your business performance can pay off by having a business that operates profitably.