Step 5 to Optimising for Profit & Cash
Updated: Oct 12
Here’s the 5th 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 5.
Numbers Monitoring is the final step in our 5 step method and it’s all about engaging in your numbers in a way that measures your business performance.
The principles around Numbers Monitoring are simple but powerful and they are
Reserving time each month to strategically review your numbers
Comparing your actual numbers to your forecasted numbers (goals, budgets, KPI’s)
Deciding on & taking action based on the results
The consequence of not Monitoring your Numbers is cash & profit leakage. An hour of Numbers Monitoring can easily save or make you $50,000 or more. We see this all the time with our clients.
Every time you repeat the Numbers Monitoring exercise you’ll find ways to increase profit and cash. Some of our clients are shocked by what they’ve been missing out on.
My top tips to help you in the area of Numbers Monitoring are
Master the areas around Numbers 101, Numbers Knowledge, Numbers Strategy & Numbers Action first
Schedule time in your diary monthly to review your numbers
When you review them, compare your actual numbers to your goals, budgets & KPI’s
Write down what action you need to take to improve on the numbers (and then take action)
Consider having your Strategic Bookkeeper hold you accountable in a formal way (as this can really rocket your results)
You may not consciously realise it but all actions in business is taken as a result of your numbers. Think about it. Why do you take action or make changes in your business? It’s because of the numbers. If you do more marketing it’s to increase turnover numbers. If you increase your prices it’s to reduce the cost of sales numbers.
When you master Numbers Monitoring you’ll be moving from taking “reactive action” and getting patchy results to taking “proactive action” and getting powerful results. We call this the transformation from “reactive technician to proactive professional”.
Numbers Monitoring is truly key to creating your Thriving Lifestyle Business.
Find out how to optimise for profit & cash by taking our Digital diagnostic tool.
© The Strategic Bookkeeper PTY LTD / Commercial in Confidence / All Rights Reserved