Step 4 to Optimising for Profit & Cash
Updated: Oct 12, 2021
Here’s the fourth step you need to take right now to pull more time, money & freedom out of your business
First off, here’s a link to our earlier blogs:
Once you’ve mastered these steps, you’re ready to move onto step 4
If you’ve mastered steps 1 to 3, have you mastered Numbers Targets?
Are you setting meaningful targets & other financial KPI’s?
The principles around Numbers Targets are
Setting a Turnover Goal
Setting other key financial KPI’s
Ready to measure, monitor and take action.
The consequence of failure around Numbers Targets is cash & profit leakage. You simply won’t be optimising your business for profit and cash. You’ll be leaving tens of thousands of dollars on the table.
Conversely, the benefits and what we see when our clients commit to their Numbers Targets are incremental improvements that all add up to a better bottom line.
You can’t improve what you don’t measure & it all starts with creating goal posts (KPI’s, goals, budgets).
My top tips around Numbers Targets are
Nail the areas around Numbers 101, Numbers Knowledge & Numbers Strategy first
Then deep dive into your numbers
Have your industry benchmarks handy as a guide (or use the rule of thirds)
Set a Turnover Goal & other financial KPI’s (like Gross Profit, Net Profit & Cost of Sales)
Wrap up your results in project management software like notion.so & ensure you use the data every month in a Strategic way
When you commit to Numbers Targets you become a data-driven-organisation and that is key to success.
If you’re struggling with Numbers Targets (or the steps prior) it’s investing in some help because you will get a great return and pull more time, money & freedom out of your business
Find out how to optimise for profit & cash by taking our Digital diagnostic tool.
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