Dogs Will Lie, but the Numbers Will Not
Are you wrapped around your pet’s little paw? We are, despite the fact that we recently learned they will lie to us.
Last night, I fed our Maltese and Bichon Frise their dinners and went about my evening activities. Later, my husband, Glenn, came into the kitchen and the little guys acted as if they had missed their dinner. Given the circumstances, he, of course, fed them again.
While our dogs may lie about whether they’ve eaten yet, some things never lie, such as the real data you need to run your business each day. And whether or not you intend to, it’s the same data you need to pitch to investors when seeking funding.
With the right infrastructure in place, you have answers at your fingertips, such as:
What is the seasonal fluctuation of my business so that I can prepare for the ups and downs?
What is the demographic profile of my customers so that I know where, when, and how to reach them?
What is the average cost, price, and profit of a sale? Am I losing money on my best sellers?
These questions and many more can be answered by having the right infrastructure in place and capturing the data as you conduct daily business.
What does the “right infrastructure” look like? The answer is different for each organization based on its size and complexity. At a minimum, an organization should have a list of existing and potential customers and a system to maintain communications with them. The optimal tool is an integrated Customer Relationship Management (CRM) system. An organization also needs to manage money and financial information to project cash flow for the next 12 weeks, have the correct information for tax compliance, and make the appropriate strategic decisions. This may mean you need a separate billing system and/or General Ledger. You also need to properly set up your General Ledger with the right coding segments to be able to report on profit and loss by product, location, customer, and department, among others.
If you feel that you are blindly making decisions about hiring, marketing, warehouse space, or any other issue, remember the numbers don’t lie. Let’s talk one-on-one in a free consultation to get you in the right direction. Check out these times on my calendar and choose the one that is best for you.