Return to site

Is It Time for a (Financial) Makeover?

What You Don't Know Could be Hurting You

“It’s the start of another month—what new have I learned?” Come to think of it, that’s a great question to ask yourself every month.

Here’s why. At the conclusion of each 30 day period, you have one more, formal opportunity to drill down into what your business performance is trying to tell you. If you capture gross revenue numbers, then compare against the same month in prior years, you will get one bit of information, i.e. whether your business pulled more (or fewer) dollars. Assuming that you acknowledge all of your expenses (this month and in prior comparatives), you may also derive a valid bottom-line net income. That’s even better!

If this is largely as far as you go, however, you are missing some very important retail indicators, like “What is it costing you per net dollar raised?” “What is your net income per employee hour?” “Which product is pulling best net dollars . . . and is the respective square footage of retail floor space allotted to it, commensurate with how well the product is pulling?” In other words, you don't want your best net dollar seller to have the fewest square feet of retail space.


Asking these, and many other similar questions, is for me, the fun of a retailing business. The answers give you the tools you need to make informed decisions. In this as in nearly every other discipline, we get what we measure . . . and by implication, if we don’t measure, getting good results is left to chance.


Talon Company staff are available to help you (1) determine what information is important to assessing—and improving business performance, (2) identify the metrics which will provide that information, and (3) establish monitoring systems for monthly reporting.


Your programs and ministries are too important to leave dollars on the table. Give us a call. We would love to discuss how we can help.

All Posts
×

Almost done…

We just sent you an email. Please click the link in the email to confirm your subscription!

OKSubscriptions powered by Strikingly