IS YOUR PROFITABILITY GPS WORKING 1?

The most successful entrepreneurs follow certain basic guidelines. Over the next 5 weeks we will discuss these guidelines. The first guideline deals with how well you understand the key drivers of your business.

        Successful entrepreneurs run their businesses by the numbers. Businesses are living entities with needs of its own. If you don't pay attention to these needs the business will fail. So how do you know what those needs are? The only way is to establish metrics that illuminate the key success factors of your business. We always establish a financial dashboard that management reviews weekly. It encompasses the key elements of the balanced scorecard and adds several other unique metrics. This dashboard will tell you how good your sales are, if you can afford to hire a new salesperson, what is your cash position, what is the status of your A/R & A/P agings et al. You can't afford to wait until your CPA informs you of these items.