This week, we‘ll delve into the ACHIEVE aspect of our legacy business mantra: LEARN, GROW, ACHIEVE and PROSPER. In business, achievement can be marked by reaching milestones in sales and profits. If math wasn’t your favorite subject in school, trust me: You’re not alone. Often the creative types who are driven to be innovative, pave their own paths and build their own businesses just aren’t engrossed in the numbers. They’d often rather be networking, selling, marketing — anything but number crunching. Can you relate?

Unless you’re an accountant or financial advisor, you don’t have to be a human calculator, but you do have to understand the business of numbers. To be successful in any business venture, there are a few key numbers you should always know about your business.  Why? Because these figures are key indicators that directly impact your bottom line. They’re the signs that keep us alert to whether we’re gaining momentum or chartering dangerous territory.  Learn to understand the power of these numbers and you’ll add tremendous value to your business.

Identify key numbers – Track 3 to 5 metrics that are critical to the success of your business: sales, expenses, new leads, and complimentary sales calls. Use these numbers to regularly review progress toward achieving your goals.  For example, tracking the number of sales you’re closing, month in and month out, leads to a consistent increase in sales and profits.  Are you tracking key numbers consistently?

Know your cash flow – Cash flow is the amount of net cash generated by a business during a specific period.  Because cash is the fuel that ignites a business, many consider cash flow to be a company’s most important financial indicator.  How do you track your cash flow?  What does it tell you about the viability of your business?

Understand the P&L statements – The profit and loss statement is a simplified view of a company’s revenue and expenses for a specific accounting period (month, quarter, or year).   How do you use your P&L statement to make adjustments to your business operations?

It’s also fundamentally important to know the difference between the terms GROSS and NET.  Many times, you’ll hear someone reference their income or profit, and the amounts sound almost too good to be true.  Don’t be misled by folks bragging about their numbers. Ask to clarify whether the quantities are gross (profit before expenses have been subtracted) or net (profit with expenses subtracted). It’s equally important to understand what you’re grossing versus netting in your own business. Only then can you be sure that your business is in good health.

As we follow through to ACHIEVE, we must challenge ourselves to understand and apply basic business fundamentals on a consistent basis.  We can discuss the key indicators for your business, and in doing so BUILD A RELATIONSHIP that can help you ACHIEVE success in your business.  I can be there with you through it all, beginning to end, the good days and the hard times, and will help you LEARN, GROW, ACHIEVE and PROSPER this year.

At Celeste Giordano Coaching, I teach my clients these very strategies that are needed to build a Legacy Business and live their best life, at and outside the office. If you’d like to “Double Plus” your income this year all while creating a lifestyle that allows you to spend time doing the things you love with the people you love most, contact me today.