As a CEO, president or business owner, you’ve been so busy managing and operating your business, have you taken any time to know exactly where your company is? The first quarter of the year is gone. It’s the second quarter.
How’s your business?
Do you know?
Or have you been too busy to realize how quickly the year is going by?
Have you been so involved with just getting what needs to be done you haven’t had a moment to reflect on where business is for the year so far?
What areas of your business are strong; what areas signal improvement?
Are you going to look at the profit and loss (P&L) statement soon?
If you don’t have a P&L statement (monthly and quarterly) to refer to, how are you going to know what the profit outlook for the second quarter likely will be? Did the company make money? Lose money?
Did the company spend too much on payroll?
Does purchasing line up with sales?
What needs to be seriously looked at?
How is the company going to be more effective with its message, product or service and bring in more profitable productivity?
Or are you just going to let time go by in the second quarter and not look at any financials?
By then, half the year will be gone.
NOW is the time to absolutely jump on knowing where your business stands financially. This is the time to be in ACTION.
How are sales?
Were sales projections met?
If not, why not?
How can the company become MORE profitable?
Many CEOs, presidents and business owners do not really study the results of their business.
Is that you?
You need to consider, if you haven’t already, making a commitment to understanding the profit and loss statement from beginning to end, inside and out. It needs to be in your head. It needs to be to the point where you just know what’s in it. You’ve done MORE than just look at it, you’ve analyzed the P&L report including not just the overview but specifically, for example, operations, purchases and labor. You know exactly where the weakness is. You know how to solve whatever business problems and issues the P&L reveals.
Take the time to understand your business. Take the time to understand the numbers. It’s essential to your success.
Not every business person wants to understand the numbers. You may consider yourself an entrepreneur but you also need to be a business person. You may not be a detail person but not being a detail person in business will cost you.
You don’t have to be a detail person all the time but when it comes to understanding the P&L of your business, it’s extremely important.
Why are you in business?
I have two answers for you:
- Business = profit. That’s what a business is. You are in business to make a profit.
- Business = stress. You can’t stay in business unless you make a sustainable profit. You can’t be in business without having some level of stress. The more stress you experience can be the result of doing more business. But… if you understand what’s going on in your business the stress will be reduced because you know what to do and how to do it. You will know where it is you want to go. Rather than not knowing what the next step is which only adds to your stress.
The numbers you’re looking at on the P&L statement are statistical information that’s passed. It’s over. It’s done. There’s nothing you can do about it; you can’t change what is on those pages.
What you can do, that’s not yet reflective on a P&L sheet yet, is what happens today, tomorrow, next week, this month, this quarter.
I encourage every CEO, president and business owner to study their business without delay. Understand where the business is weak. Make the business stronger.
When you get to the next business quarter starting in July, do the same thing. Do it every quarter.
Then you won’t have to say to yourself:
Did I make a profit this year?
Instead, you will know if you made a profit.
Remember: No matter where your sales are at the start of every month; at the start of every quarter… No matter how much you have in the bank … You need to think you are stone cold broke. You are starting at zero dollars in sales. You are starting over. Whatever happened last month, last quarter doesn’t matter.
This is the time to review your business plan. Determine if sales goals are realistic. Without planning and specific goals how will you and your company remain on the pathway to business success and profit?
The next three months can define your company’s success for the year.
Make sure, when you arrive at the end of the second quarter, you’ve reached your business goals. Then keep the momentum going!
To your success!
Howard Lewinter guides – focuses – advises CEOs, presidents and business owners throughout the United States to MORE success – MORE profit – less stress. Get MORE from your business! Talk business with Howard: 888-738-1855.