Business Owner Finance Mistake #1 – Numbers

Business Owner Finance Mistake #1 – Numbers


One of the mistakes we see all the time for business owners is not knowin’ your numbers. What do I mean by not knowin’ your numbers? That means you don’t know what number it takes
for your business to be successful. Throw ya some examples. If you own a restaurant, you have to know
how many times you have to turn a table. You have to know what your average sales ticket
price needs to be, what your food cost is. You have to know your numbers. If you’re a physician, you have to know what
number you’re gonna get reimbursed from a insurance company so you know how much money
you’re gonna make. Every business has their number. You wanna know what your gross profit is so
that, you know, are you, what percentage are you makin’ based on a sale before you pay
your operating expenses, that gets into accounting lingo, but you, your business, know what are
your numbers by day, by hour, by employee, whatever that looks like for you, you have
to know it, ’cause if you don’t know your number you’re not gonna be successful. One of the other numbers that folks don’t
know their expenses, and they just let them grow and grow and not pay attention to what’s
goin’ on in their business, and you have to know, from a operating expense standpoint,
that is. It’s why you see a lot of big companies and
all of a sudden they starting layin’ off folks or closing. Your expense creep can happen anywhere, and
so you have to constantly be lookin’ at your expenses. Are they reasonable? Is there a return on investment for what I’m
payin’? Modify that as needed.

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