I’m one of the weird ones where I actually enjoy digging through numbers and finding where things aren’t lining up or aren’t going to line up if the current trajectory continues. That’s not to say that I still don’t run into some numerical snafu’s from time to time while in a business coach meeting, but for the majority of the time I try to stay ahead of the game when it comes to knowing my numbers – whether that’s my personal finances or any of the businesses that I have run on the side. It’s a game for me.
That being said, I also see where other people – not “you” people, but other people – struggle with tracking numbers. This was something that our fearless business coach leader, Clay Clark, pointed out this week. If you are going to be a leader, lead with numbers. The numbers for your business are so important to keep track of. They are literally what separates your business from life and death. Just knowing where your money is being spent can and does have a major impact on your business on the whole. It’s a foundational piece of the “hierarchy of needs” for your business.
Knowing this, as a business owner, you have to check your numbers on a weekly basis. Just looking at your numbers once or twice a month will not cut it. You have to develop the superpower to see the bad things that can happen in your company’s finances before they actually happen. You have to get in front of that wave so you can ride it out when things get rough. Conversely, you can also see the good waves coming down the pipeline and it can ignite your passion to keep going.
If you are going to be a leader, lead with numbers.
Clay and our Thrivetime Show business coach team help businesses all around the world get to the bottom of their numbers to see where their companies are going. Many times, it’s not pretty. In fact, there have been several times where once the business owner digs into the numbers they have found that people have either been outright stealing money from the company (at least once to the tune of over $50,000) or they are being charged for things that they no longer need or use. Don’t let your company fall into this situation. Get down into your numbers weekly.
But I use Quickbooks and/or have an accountant for that. That’s great, but you still need to break down your numbers. Without a clear picture of your weekly income and expenses, you cannot sustain success. Here’s what Clay recommends every business owner does to see where their money is going:
- Print off all of your bank and credit card statements
- Open an Excel spreadsheet or Google Sheet
- Create an Income column and an Expense column
- Under the Income column, enter and label every single income item (All of them)
- Under the Expense column, enter and label every single expense item (All of them)
- Once everything is entered, review the sheet and look for where your money is going.
Typically by following this process on a weekly business, you can cut out at least 3% of unneeded expenses from either waste or items that are no longer needed.
If you feel lost in your numbers, use this template to help you break down your numbers – Get the Template »