How many of you garden?  Mike and I grow herbs in a garden that we love, but we know that to ACHIEVE the best results, we have to consistently tend it by taking care of the basics – watering, weeding, and pruning.  Having a successful business requires much of the same consistent work as gardening.

As we continue the focus on our motto, LEARN, GROW, ACHIEVE and PROSPER, think about the word ACHIEVE – to reach or attain a desired objective or result by effort, skill, or courage.  So what must we do to ACHIEVE our goals?  (Many of us hope we will achieve our goals, but hope is a desire, not a strategy.)  Instead, we need to focus on meeting our SMART goals by evaluating key indicators, understanding what the indicators show us, and adjusting our plans.   Quite simply stated – you need to follow through to ACHIEVE your goals!

For many of us, math was not our favorite subject in school.  However, to be successful in business, there are a few key numbers you should always know about your business.  In addition, you should understand the impact of the key indicators on your bottom line.  Much like tending a garden, you must consistently tend to basic business numbers that are fundamental to ACHIEVING maximum results and adding value to your business.

1. Identify key numbers – Track 3 to 5 metrics that are critical to success for your business – sales, expenses, new leads, complimentary sales calls – and use those numbers to regularly review progress toward your goals.  For example, tracking your closing of sales, month in and month out, leads to consistent increase in sales and profits.  Are you tracking key numbers consistently?
2. 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?
3. 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 in your business operation?

It is also important to know the difference in the terms GROSS and NET.  Many times, you will hear reference to income or profit, and the amounts sound almost too good to be true.  Don’t be mislead by folks bragging about numbers; ask to clarify whether the quantities are gross (profit before expenses have been subtracted) ornet (profit with expenses subtracted).

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 in 2014.

If you would like a complimentary 30 minute call, click on the following link to schedule an appointment: https://celestegiordano.wufoo.com/forms/grow-your-business-strategy-session/

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