Knowing your numbers is key to your businesses health. If you’re working with real time data, and really paying attention to what your numbers are telling you, you’ll know what changes you need to make. You can start to track how long each of your services takes to complete, what customers are the easiest to work with and what your fixed and variable costs are. You can see where you can improve your systems and really understand where your money is coming from.
Starting a business is an uphill climb
When I started my first business I didn’t realize how much of an uphill climb it was going take to be successful.
Like most of you, I started my business while I was still working my day job. It meant long hours, sacrificing time with family and friends, and a whole lot of stress.
I’m grateful for my day job – it gave me the security I needed while I slowly built up my clientele.
But it also became a bit of an anchor around my ankle. The time I had to focus on my business was limited to evenings and weekends while I worked my 9-5.
That secure job was becoming a weight dragging me down. The best decision I made was quitting my job and investing in my own business full time.
There comes a moment in every business, usually more than one, that requires you to pivot or stagnate.
In my case, I knew if I didn’t quit, I would never build my business up enough to support me. There just weren’t enough hours in the day.
It was scary to jump, but continuing down the path I was on was getting too painful. The thing that allowed me to pivot, the thing that will allow you to pivot, was knowing my numbers.
Do you know your numbers?
By the time I quit my day job, I knew how long the average monthly bookkeeping file took me. I knew my overhead costs, what kinds of customers I needed to work with in order to systematize my processes , and what my walk away number was for every job.
I learned that pricing by the job rather than charging hourly made me more money and lead to happier customers and always getting paid on time. I realized I could work less, make more, and give my customers top notch service.
Knowing your numbers is key to your businesses health.
If you’re working with real time data, and really paying attention to what your numbers are telling you, you’ll know what changes you need to make to build a more profitable business.
You can start to track how long each of your services takes to complete, what customers are the easiest to work with and what your fixed and variable costs are. You can see where you can improve your systems and really understand where your money is coming from.
As business owners, we can sometimes get stuck thinking we know the way things should be and what’s best for our business. Often, we aren’t basing our opinions on anything more than ideas and what we think will work. We need to be willing to listen to what our numbers are telling us and pivot towards a path of longevity.
That’s how bookkeeping can save your business. Bookkeeping is not about organizing paperwork for your accountant. It’s about turning your financial data into a tool that will help you make smarter decisions EVERY DAY in your business.
If you need help understanding your numbers, visit The Bookkeeping Antidote and get the apps, training & support you need to automate your businesses bookkeeping.
