Warren Buffet, one of the world’s richest men, says…. How are you going to play the game if you don’t know the score?
Have you ever played or watched sports? Maybe even counted that your friend has more sweets than you?
If you don’t keep a score of the results you never know who is winning.
It’s a bit like that in business. How do you know you are doing well, badly… Or maybe just about to go bust… If you don’t keep the score.
I have met many business owners who are really bright, have a fantastic business; but they don’t have a clue what all their effort is delivering.
If you are on the ball and look at your bank statements, well I have some bad news for you. That only shows what’s in the bank, not what is due in and out in the next days, weeks and months.
If you wait for your year end accounts (surely the accountant got it right!), even worse news. That is just historic data for the tax office…. Great for reminding you that you didn’t put enough by for the tax bill!
A scary fact is that most of the businesses that fail, fail as profitable enterprises. It’s just that they ran out of money.
My suggestion is to start by making a forward looking budget and cashflow forecast for the year ahead. Then you might want to read Financial Intelligence (for the manager…).
So instead of sitting on the sofa looking at the football, Rugby, F1, etc results this weekend, have a look at the scores of your business so you can be in charge of your business finances rather than the other way round.
If you would like to find out how to ‘know your score’, call me on 07766 080770 or email alex@alexpetty.biz
