5 Mistakes that Can Ruin your Business and Destroy your Dreams: #3 Ignore the Profit and Loss Statements

This is the second in a series titled, "How to Ruin Your Business and Destroy Your Dreams!"  I originally presented this to the Chandler Chamber of Commerce.  The PowerPoint is available at www.MyBusiness-Advisors.com.

Today's mistake: Ingore your Profit and Loss Statement and other financial reports

Can you imagine losing weight without ever stepping on the scale?  Trying to run a profitable business without looking at your financial reports is the same thing.  You must monitor your progress, or lack thereof.  Look at your reports at brutal facts, not judgements.  They tell you a story, paint you a picture, that you must see.  Jim Collins in his book 'Good to Great' makes this exact point.  In order to turn things around, you must face the brutal facts.  You can find those brutal facts in your financial statements.

Running a profitable small business can really be boilded down to three numbers: Revenue, Gross Profit, and Net Profit.  This becomes an exercise in Sales, reducing cost of goods and reducing expenses (including taxes).  Start working this like a business owner, and you will start to see the benefits.

Comments

[Performance Dashboards]

Thank you for that