The New Way of Doing Business
It’s the first day of the month and the first day of a new financial quarter. Today is a great time to have a look at how you went compared to your quarterly goals and budget.
Did we meet our quarterly sales forecast?
Was our gross margin % up or down on last quarter? On this quarter last year?
Did we have an expense blowout?
Are debtors and cash where we predicted they would be, and if not, why not?
How many new potential customers did we see, and what was our conversion rate?
When we first discuss implementing “The New Way of Doing Business” model with clients, we often hear “but it’s the first day of the month, how can we know this?” With every improvement process, there are steps to take and habits to form.
To be able to know the answers to the above questions, your business needs systems and procedures. Accounting software that imports bank feeds daily. And the habit of logging in and reconciling every morning. Using technology to record, report and measure in much shorter time frames than previously possible.
Sound too hard? That’s fine, all this “change” stuff that people are talking about is optional. But just remember, your competitors may well be all over this already, and if that’s the case then you’re at a severe competitive disadvantage. And if they aren’t? Get the jump and gain some market share (and increased profits) while they aren’t looking.
In all my years of advising to franchise and SME businesses, I have yet to see one that is not markedly improved by refining processes and systems. So why not do it?
It’s the New Way of Doing Business…