The Power of Knowing Your Numbers: Increase Profitability and Reduce Chaos in Your Business

As a business owner, you want to ensure the success of your company. However, this is not always an easy feat. It takes effort, strategy, and most importantly, knowledge. One crucial aspect of running a successful business is knowing your numbers. Not just a quick glance at the revenue and bottom line but a thorough understanding of what's happening financially in your business.

In this article, we will explore why knowing your numbers is essential to the success of your business and what steps you can take to achieve it. 

One way to gain a better understanding of your finances is to regularly review your Profit and Loss statements. These statements provide valuable insight into the financial performance of your business, allowing you to make informed decisions and increase profitability.

Another important step in knowing your numbers is to implement job costing. This involves tracking labor and materials for each job and setting a budget to manage the job to throughout its lifetime. By doing so, you can gain a better understanding of your costs and make necessary changes to increase profitability.

Finally, conducting a financial review of each job as it closes is essential to identifying what worked and what didn't. This will help you develop a plan for improving profitability in the future.

If you need help getting started with knowing your numbers, feel free to book a call with me. There is no charge, and I guarantee you will leave with a simple plan for developing this important habit. With the power of knowing your numbers, you can get more profitable, reduce chaos, and build something very valuable to sell in the future when the time is right for you to move on.