Greetings!

 

We are living in a society of convenience, the here-and-now, instant gratification. We're reachable by phone, email, and any available social network whether it's 9:00am on a Tuesday or at your son's t-ball game on a Thursday night. Accessibility is everything. Similarly, the same rings true for a business owner - having round-the-clock access to company financials is a luxury that helps one stay abreast of the health of the company.
 
To get a quick snapshot of how my business is doing, I hone in on a couple key indicators. Through online banking, I check the average bank balance for the last 30 days. Cash on hand is a key factor in a company's success, so I look at the average bank balance for the last month and measure that figure against the average from the last 6 months; if the figure has increased, then we know we're heading in the right direction.
Secondly, I look at the average length of time it takes customers to pay invoices. Generally this figure is proportional to the pace of the economy but it's important to keep a reign on outstanding invoices.
 
While the numbers are important (I will not discredit that), sometimes the immeasurable, the things that aren't black and white, are equally important drivers in a business's success. Take communication for example - effective communication is vital to the success and survival of a business. Whether you are communicating with an employee or a client, verbally or in writing, clarity and conciseness are imperative.  Doing so helps ensure things are done correctly and meet the other's expectation the first time, ultimately saving time and increasing personal productivity for both parties involved.

It's easy to get wrapped up in projects and tied up in countless meetings but ultimately, it's important to keep a close eye on the business operations to ensure your shop is successful.

Sincerely,
 
Matt Seals