What’s your bottom line?

When it comes down to managing your finances it is all about the basics. When you put balance sheets, cash flow statements and income statements aside- what really matters?
For most small and medium sized business owners it’s two things: what’s coming into your pockets and what’s flowing out. Profit is wonderful, but it’s not the only thing you should be looking it. It’s important to look at the breakdown.

It’s important to identify what brings money into your business. Who is your target group and how are you reaching them? Have you identified their needs and found a way to link them with your goals? These questions are often tough for businesses to answer as they fail to set out a clear picture before they begin. Reconcile your perceptions of reality with the business climate around you. In looking at revenue it’s essential to look not just at the products you’re selling or even how you’re presenting these products to potential customers. It also boils down to price. What’s your pricing strategy and how well does it factor in the willingness of your customers to pay vs. the true cost of sales to you as a business owner?

It’s also important to identify what pulls money out of your business. Make a list of your expenses and evaluate their relevance. Are there areas where you should be cutting back and areas where you should be putting more money in?

          Please feel free to post questions/comments and share your experiences.
 Visit us on the web: www.startsmartgh.com Send us an email: info@startsmartgh.com

No comments:

Post a Comment