The Dr. is In: Key Steps to Improve Profitability in 2013
As 2012 has closed, it’s time to push forward with 2013. I could talk until I’m blue in the face about getting your books in order, creating budgets and starting 2013 out right. But frankly, I’m tired of it. Not because it’s not a good idea, but because I see so many small business owners who continue to ignore the books and run their company by the seat of their pants.
As part of our business services, The ShinerGroup offers a File Assessment and Review (FAR). I’m not telling you this because I want you to purchase it (although it wouldn’t be a bad idea). The reason I mention our FAR is that in providing this service, we analyze data files from companies all across the country. And honestly, the state of bookkeeping and accounting in today’s ESC businesses is frightening.
So, what’s an ESC to do? What would make a business owner finally commit to getting good financials from his or her accounting system, and then actually analyzing those numbers? What I can offer are the following.:
Step One: Succumb to a Higher Power
Get help! You can’t do this alone—if you could, you would have by now. Whether it’s forcing your CPA or tax preparer to explain the numbers, using an industry consultant or reading a book about managing your finances, it’s time to make this commitment.
Of the hundreds of businesses I’ve worked with, those that learn to identify and aim for good numbers almost invariably achieve them. And while I haven’t done an official statistical experiment, my own experience tells me that companies that analyze their numbers are more profitable than those who don’t.
Think about how you built your business. Did you build your own website, or did you get help? Did you create your own contracts, or not? Did you get training on equipment installation, or did you just wing it?