Internet Radio- 21st Century Entrepreneur | “What Functions Should A Small Business Outsource” | Aired Friday, July 24, 2015 at 12 NOON
This Friday July 24 we will be airing another episode of “21st Century Entrepreneur” which is an Internet radio program aimed towards educating business owners and their advisors on how to make their businesses more successful and profitable. It is a show hosted by JC Maldonado who is the CEO of BizGro Partners, a Business Development Firm that helps small and midsize companies grow, expand, and transition. This week we will discuss the importance of outsourcing in today’s business climate.
Below is a blog that describes the importance of a financial scorecard as a method of tracking your business’s progress. Finally, we have gained some interesting insight during our recent interviews from experienced entrepreneurs. To hear recorded versions of these shows, click on 21st Century Entrepreneur Archives. Feel free to touch base with us if you have any questions at firstname.lastname@example.org.
The Importance of a Financial & Data Scorecard
It is amazing how many entrepreneurs simply do not have a handle or grasp of their financial and sales data. We often ask our clients to submit year to date financials and they have to chase their accountant for details. We ask them how many leads did their marketing efforts generate and they look at us with a clueless facial expression. We ask them their breakdown of sales per customer and they do not have the info at their fingertips. We ask our clients what are their most profitable products and services and they give us off the cuff answers lacking any exactitude regarding these figures. Simply put, no matter how profitable your business has become, if you do not have a close pulse on your financial & sales data, your business may be headed to a disastrous path and at best you can be shortcutting your company’s potential for long term success. With today’s technology, there is simply no excuse not to have your financial and sales data in order. Here are the reasons why an entrepreneur must get this part of his business in order:
- Better Decision Making & Budgeting: If a business owner knows where he is at with regard to potential sales, sales, expenses, and profits, he or she can make better informed decisions and can budget time and money more effectively.
- Access to Capital: With strong books, records, and projections, it is a lot easier for a business to raise capital from banks, private lenders, and investors.
- Awareness of What Products and Services Are Selling at a Profit. If a business owner knows what products and services produces the most profit, he or she can place concentrated efforts on selling profitable product or service items and can eliminate the portion of the product or service line that is not profitable.
- Increased Enterprise Value. Better books, records, and organized sales data create transparency that can lead to a business owner receiving more money for his/her business when it is sold.
- Better Organization. Ultimately, your business will operate a lot smoothly will control and access to accurate financial and sales data. Although every business and industry is different, here are some key data categories your business should embrace and have ongoing access to:
- Weekly Sales.
- Cash Bank Balances.
- Sales per customer.
- Sales per product/service.
- Profit per product/service.
- Profit per customer.
- Monthly Sales.
- Monthly Profit.
- Quarterly Sales.
- Quarterly Profit.
- Annual Sales.
- Annual Profits.
- Sales Leads.
- Sales appointments/conference calls.
- Written Proposals.
- New Customers.
- Average sale made per customer.
- Record of all conversations with prospects and clients throughout selling process.
Suggestions on how to Become a Data Conscious Company:
There are 2 simple approaches or methodologies to gathering, recording, and developing a process which controls and manages data on a perpetual basis. First, it is important to harness a bookkeeping process that manages financial information on a daily basis. This can be achieved by hiring an in-house bookkeeper or outsourcing your bookkeeping to an outside bookkeeping or accounting firm. The little money you invest in this area will pay big dividends and help you take your company to the next level. Further, today’s accounting software in the market enables you to get access to your records on the web anywhere from your computer, tablet device, or cell phone.
Second, explore implementing and using a Customer Relationship Management software program and an automated email marketing system that can help you track all sales leads, prospects, and customers. Data in this regard can help shorten your selling cycle and help close more sales. Use of social media venues such as Facebook, Linkedin, Twitter, Youtube, Pinterest, and Slideshare can also help you keep in touch with prospects and customers and help you control and manage critical information and data. To learn more about how you can control your company’s financial and sales data, call us at 201-496-6931 or email us at email@example.com.