According to the SBA, one of the top reason small businesses fail is due to poor accounting, which boils down to one thing – not looking at the numbers. Do you have a system and process in place to monitor your bottom line? If not, how will you know when you’ve achieved your financial goals? How will you know which marketing strategies and actions are paying off and which ones are not? The numbers tell all! You may be thinking all I need to grow my bottom line is to get more clients. More clients alone will not solve the profitability problem. Tracking and monitoring your numbers on a monthly basis will.
Here are 5 key steps to help boost your business profits and achieve your financial goals.
- Clarity – Clarity will grow the bottom line. Get clear about where your business profits are now. Than identify what your annual profit goal is or essentially where you want to end the year.
- Focus – Focus on what you want to create based on step #1. Remember, what you focus on becomes your reality. When you focus on not having enough money to pay your bills then that’s exactly what you create.
- Create A Strategic Action Plan – Take your annual goal and break it down into a monthly goal. From there, identify and align your actions with the financial results you want to create. There’s a cost of doing business so make sure that you consider your expenses when creating your action plan.
- Take Consistent Action – Based on the action plan created above, like Nike said, “Just Do It”. A goal helps you articulate your idea but consistent action will create the results and success you desire.
- Monitor Your Results Monthly – When it comes to boosting the bottom line you should review your business financials monthly. Decide on a date to review your numbers and schedule it in your calendar.
If you aren’t seeing the results you desire, review what did and didn’t work then adjust your action plan accordingly.