Know your Numbers: How Shark Tank Stats Can Help Every Business Owner
We are diving in deep this week with a blog all about numbers. Not just any numbers, but the top 6 facts and figures you’ll want to be intimately familiar with as a business owner. Not only will this data help you measure your business’ success, but also equip you with what you need to meet financial goals moving forward. Let’s make sure you know your numbers. Here’s how Shark Tank stats can help every business owner manage their bottom line and top priorities.
You may not be looking for investments with the notorious Mr. Wonderful or the Queen of QVC, Lori Greiner, but you certainly can benefit from customers and clients investing in your products and services. Building and maintaining financial reports including profit and loss, balance sheets, cash flow, and budgets are at the core of our accounting services. Let’s break down the six categories we can help you monitor to make money.
This is an obvious number that is likely one you’re familiar with and regularly keeping an eye on. A business owner is always going to want to know how well their products and services are selling, and revenue tends to prove popularity via purchases. Granted, there are many ways to break this down and, of course, revenue is wonderful, but best when it is greater than that of costs. One way to know how great your profit margin is, is by having clean books by-way-of a thorough, third-party business review.
Overhead costs. Overhead refers to the ongoing business expenses not directly attributed to creating a product or service. These numbers are crucial for budgeting purposes but also for determining how much your organization must charge to ensure you are still making a profit. If it costs more to make and market your products (remember what it costs to also acquire customers) than is being brought in, something is going to have to change – and fast.
Did you take out loans to get your company off the ground? Any debt you have is certainly a set of numbers you’re going to want to keep top-of-mind. The longer you’re paying off a debtor, especially with interest, the longer you’re missing out on an increase in income.
Accurate inventory records are an absolute must. Knowing what you have on-hand allows you to provide customers’ demands while also minimizing delivery delays. As you know, a lack of inventory can be detrimental in the form of lost sales opportunities and in loss of retention or referrals due to unsatisfied customers. Your bookkeeping should always include accurate inventory records to improve operating efficiencies.
Separate from costs of production and marketing are also the expenses that accompany everyday operations. Do you know how much it costs to run your company? Here’s where knowing your numbers are, once again, integral. Some of these categories include, but are not limited to, office expenses, inventory expenses, and payroll.
Future Financial Goals
Once you know your above numbers, you can begin to dream about your business’ future financial goals. You’ll want to know where the company is going and how you can literally afford to get it there. Is your revenue growing? What’s your plan to keep it growing? How much will that cost? How much will you make? As Virtual CFO partners, we will support you in making sound business decisions, interpreting your financial statements, and building forecasts to build your company in the future.
Our (phone) number is also one you should have on hand.
Whatever level of number-crunching help you need for your business, Two Sense Consulting can help you out. We have worked with startups and international hotels and our experience has helped guide every single one of them on a better path for growth and success. Feel free to call, message, or email us so we can set up your FREE consultation.