Donna Reade

QuickBooks Online Consulting & Bookkeeping

You Can’t Grow Your Business with Bad Numbers

Bad numbers2When taking on new clients I always ask them a series of questions regarding their business and how it operates. Time and time again talk with prospective clients that want to grow their business (super exciting stuff… my favorite prospects to meet with!).

Their energy is always contagious and I can tell they have a passion for what they are doing. It makes me even more interested in how I could help them achieve their goals.

The conversation starts off with them talking about their businesses- what service they provide, their customer demographics, the values their business holds, and where they want to be in the next year or so.
Great! They have that info down and rattled off answers to all of my questions.

This where things start to go downhill.

The conversation continued with “Okay, this is where you want to be. Where are you now?”

The response is usually something like this “Well… I’m not real sure what our sales are. Nope, not real sure what my gross profit is. Ugh, no idea how much my monthly payroll runs.”

What?!? I followed that up with, How would we monitor your growth if we don’t know your numbers?”

Crickets.

That is where getting a bookkeeping process in place would benefit their growth plan. What I go on to explain to them that it is impossible to do growth or really any planning without accurate numbers. Bookkeeping can be overwhelming and intimidating but once a process is put into place it is not as hard as you may think.

The fact is that numbers are concrete. They provide a map to your growth (positive or negative). They allow you to monitor progress, make adjustments to your strategies, and keep growing.

So at the end of the day you can have the best action plan and strategies, but without the ability to rely on your numbers you won’t be able to measure whether you’re going to reach your long-term goals or not. You need to be able to tell whether your plans are really working, or if you should change tactics to reach your goals.

One Response to You Can’t Grow Your Business with Bad Numbers

  1. Joseph Ezenwa says:

    Donna,I if they can set objectives that are smart, it will pay off.SMART here means specific, measurable,attainable ,realizable and time bound.