You might think that you know your business inside out, you created it after all. But when you’ve got lots of different employees and departments all working on their own separate projects, it can be easy to lose touch with your company. That’s a real issue because if you aren’t up to speed, you can’t identify any problems within the company and improve things. Once the company is a certain size, it’s impossible for you to know every single tiny detail of your company, but there are things that you need to be aware of. At the very least, any good business owner needs to know these numbers.
One of the best ways to gauge the success of a company is to look at the website data. If you’re getting a good amount of visitors then that’s a sign that things are going well. Equally, if you see a sudden drop in hits, then you know there’s a problem. The best way of keeping tabs on your website is to get a professional digital marketing agency to handle it for you. Visit Web Design // Digital Marketing // Herdl for more information on how it can help your company. Having a digital marketing agency is such a huge benefit because if your site does start to stagnate, they can help you with a solution.
Cash flow is one of the most important numbers to know because it can determine whether a business survives or not and it gives you a general picture of the financial health of the company. If you’ve got cash flow issues, alarm bells should be ringing because if you don’t sort them out quickly, you might find yourself quickly falling into debt, or even worse, closing down completely.
The amount of inventory you’ve got is important because it gives you good insight into how your sales are doing. If you’re consistently finding that you have a relatively low inventory, that can mean one of two things. Either your sales are increasing and you’re doing well, or you just aren’t ordering enough stock. Shortages increase the risk of letting customers down if you haven’t got enough product to supply them. You should also be looking out for a huge surplus of inventory because that spells bad news. The main reason that you’ve got too much inventory is simple, you aren’t selling enough. However, it could also mean that you’re being unrealistic about how many sales you’re making and you’re just ordering way too much. Either way, you’re spending more money than you need to on stock.
Your net income refers to your net earnings as a business and your net profit as a whole. If you don’t know those numbers, you haven’t got a clue about how your business is doing and how you should move forward. If you aren’t profiting, you’re in real hot water and you need to know about it right away. The amount of profit that you’re making also dictates the amount of spending that you can afford. This is vital because you can only expand by spending money and if you try to expand before you can afford to, you’ll run into financial trouble.
At the very least, you should know these numbers. If you don’t, there’s no way that you can make informed decisions about your business and how to move forward.