Most entrepreneurs do a lousy stinking job of knowing their numbers while simultaneously trying to manage production, sales and delivery of their product. But numbers are one of the most powerful tools in business. Without knowing how a business is performing financially, its impossible to predict how successful you can be. Recently Ive been spending a lot of time at our local lumberyard. They have been in town since the early 1970s, but when the recession hit in 2008 -2010 they were hit hard. I mean really hard. Mainly because of antiquated systems and not really knowing their numbers. So at the bottom, they began to pull apart their last couple year or so of sales, costs of sales, running costs, fixed costs and cash flow. And low and behold they now knew what they needed to fix. Its now 2014 and they are continuing to move in the right direction and in fact are expanding. Im truly happy for them. Knowing their numbers, they can manage things with confidence and see in real time just what’s happening on that all important bottom line.
Posted on: Tue, 28 Oct 2014 21:07:13 +0000
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