Thursday, March 6, 2008

Show me the numbers! I'll show you the money!

Show me the numbers, they contain the answers and I'll show you the money.

How do you carry out this supercritical analysis of your business?

Simple you put in place systems to monitor the numbers (so called key performance indicators - KPI's) and then guess what you do - you look at those numbers on a regular basis and make informed decisions. Otherwise there you are up to your eyeballs, trying to manage every aspect of your business, you come up with a brilliant plan. You put the brilliant plan into action and then your distracted by another brilliant plan, crisis, disaster, success whatever. 8 months later you look at the figures and all your successes have been wiped out by the poor performing "brilliant plan" that has been steadily losing you money in the background! Worse you discover that one of your less brilliant ideas was actually quite successful and was making money and with a little adjustment could have made lots of money! Ouch!

You wish you'ld looked at those numbers earlier.

Find out what works and do more of that.

Find out what doesnt and do less or preferably no more of that.

Churchill said "success is going from failure to failure without loss of enthusiasm" - an entrepreneurs motto perhaps?

An admirable quality but Churchill also boasted decisiveness, self-discipline and attention to detail. Need it be said that these qualities, too, are to an entrepreneur's advantage? Perhaps the entrepreneurs motto should be "success is going fom failure to failure without loss of enthusiasm but when you find success act upon it, act decisively, pour your time, energy and money into it, capitalise on it, make it grow and make it great!"

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