[From Caleb: Today, Adam Khoo shares about tracking your accounting figures to meet your business goals. Just last month, he wrote about why expats will rule Singapore and why money is the lifeblood of business.
This post is written for business owners and aspirant. Start ups are usually drowned in the excitement of entreprenuer work. Keeping an eagle’s eye on financial figures is essential business success.
Notice how Adam’s tips are succintly practical: They’re very similar to most startup advice about watching cashflow and setting performance measurements. It is the intensity from this logical step that really make you think about the scale of his business success.
Stay tuned this week for something cool]
Your financial figures tell you whether your business is on track at meeting its goals. If you don’t pay attention to it constantly, your business could be going off track and by the time you figure
it out, it would be too late!
Here are some of the most common scenarios that happen to startup companies. By not tracking his expenses closely, the business owner is not aware that his costs are actually overshooting his budgeted amount.
By the end of the year, he finds that he has actually been making a loss! If he had known this fact immediately, he could have taken steps to reduce his costs and turn around a profit. Another common example is that the business owner is not aware that sales revenue is not coming in as projected. As a result, he will again find himself making a loss at the end of the year.
By the next three hours, the sales figures are updated in our computer’s accounting system. My CEO then studies the consolidated report of the entire sales revenue generated by all the product
divisions weekly. The moment our sales revenue drops below our projected target for that week, we will immediately change our strategy and take new actions.
We may place more advertisements, create new marketing channels, offer a special promotion, push our sales people harder, increase telemarketing efforts and do whatever it takes to push up the figures!
To your business success,
Adam Khoo is an entrepreneur, a best-selling author and a peak performance trainer. A self-made millionaire by the age of 26, he owns and runs several businesses in education, training, event management and advertising, all with a combined annual turnover of $20 million. His best-selling “Secrets of Building Multi-Million Dollar Businesses” is a complete step-by-step system that will show you how to take an indea from start-up to a million dollar business in 18 months flat. This article is reproduced with permission from Adam Khoo Learning Techology Group.
photo credit: Business Graph by nDevilTV