6 areas to keep on top of in your business.
It’s important throughout the year that you pay attention to the numbers when it comes to your business. This will make calculating you’re your taxes etc. especially at the end of the year much less complicated. These numbers are important as they will show you your strong areas as well as help you to detect the areas that are red flags in your business. Taking the time to carefully check your numbers will help you begin to see what works and what does not so you can make any necessary changes.
This brings us to the question: What are the important areas you need to pay attention to in your business?
For now we will take a look at 6 areas.
1) Sales and profits First you should be looking at your sales and your profits. Is your business growing or decreasing when it comes to sales and profits? If you find that that as the year progresses your sales continue to decrease that should be a huge red flag.
Analyze why they are increasing or decreasing so you can remedy the problem.
2) Break your business down into various departments Take a look at your business and see how you can break it down into departments or product categories. Are there departments or categories in your business that are exceptionally profitable? If so you might want to focus on expanding those areas. On the other hand if there are categories and products that are not performing well consider cutting those. Breaking your business into various departments makes it easier for you to not only grow your business but understand how it can run smoothly. Another advantage for breaking your business down into departments or categories is that you will feel less overwhelmed running your business.
Let’s say for example that you find certain products that sell really well in your business. These are the products you want to focus your time and efforts on.
3) Advertising Take a look at the past six months and see if where you are spending your advertising dollars are paying off. Ask yourself what kind of ROI ( return on investment) you experienced. When you have a good tracking system in place this question will be a lot easier for you to answer.
The last thing you want to do is waste time and money advertising where it’s not proving to be beneficial.
Keep in mind you need to consider not only the advertising dollars but any manpower that was involved. For example, social media advertising doesn’t cost that much money however if you hire someone to manage your social media advertising that cost is going to affect the return on investment.
4) Network Networking is one of the most crucial components in running a successful business. How much time do you spend on networking? What has been the return on that time invested? As I work with more and more business owners I find there is a true disconnect when it comes to understanding networking. Many business owners do not understand what it means to network and how to do so effectively. That’s the main reason I created my course The Art of Networking. Networking has a huge impact on your business success. Never underestimate that fact.
5) Continuing Education You know you have to invest time and money in your business but have you been investing in your continuing education? For example I mentioned the Art of Networking above. Have you invested in a course that will enable you to network more effectively? What about social media? Have you gotten education to find out what social media sites would work best for you and your business? When you invest in your education you are investing in your business. If you have employees working for you it’s vital that they have these skill as well. Should you decide to hire employees that do not have these skills this will wind up costing you more time and money as you train them.
6) Customer service The last thing we are going to look at has to do with your customer and their satisfaction. One way you can gauge your customer satisfaction is to look at the amount of returns you get from your product or services. If you find there is a high volume of return you know that you have some research to do. Ask these questions: Why are they returning these items? Are you educating them enough before the purchase?
Your customers are the lifeline of your business. You want to be able to not only keep your customers happy but also keep them coming back for more products and services. Are they so happy that they wind up referring other people to your business?
Step back and look at these numbers. Treat your customers the way you want to be treated by others. Make sure that if you have employees they are treating your customers in the proper fashion.
Not long ago I went to the car dealership to have work done on my vehicle. My husband over heard one of the staff talking to a customer on the phone. You could hear the customer on the other end of the phone screaming. The employee was calm cool and collective. His boss would have been proud of how he handled the situation.
That’s how you want to feel about members of your team who may have to handle delicate situations, proud.
Whether it’s weekly or monthly continue checking these specific areas in your business. The more time progresses the better sense you will have of what areas need to be worked on.
A huge benefit of checking these items throughout the year is that when you start to get ready for year-end tax time you will find that you are more organized and better able to evaluate your business and its strategies.
Do you keep track of your numbers throughout the year?
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Be savvy and successful!