For a small business owner with limited time, starting the day with key pieces of information can set the tone for informed decision-making and a highly productive day. Here are the top three pieces of information a small business owner should wake up to:
1. Daily Cash Flow Position
Understanding the current cash flow situation is crucial for maintaining financial stability and making informed decisions. This includes:
Today: Knowing the exact amount of money available in business accounts.
This Week: Awareness of expected cash receipts and cash outflows over the next week will allow for proper planning, especially high priority expenses like payroll.
This Month/Quarter: A brief overview of expected cash flow for the near future, highlighting any major cash inflows and outflows. The goal is to identify potential shortfalls or opportunities to invest surplus cash.
2. Sales Metrics
Keeping a pulse on sales and revenue performance ensures that business owners can track growth and identify any issues promptly. This includes:
Daily/Weekly Sales Results: Information on the most recent sales performance compared to targets or previous periods.
Key Sales KPIs: Metrics such as average transaction value, number of transactions, memberships sold, and customer acquisition rates.
3. Operational Updates
Staying informed about the operational status of the business helps in addressing any immediate issues and planning effectively. This includes:
Staffing and Schedule: Information on employee attendance, schedules, and any immediate HR issues. Are you adequately staffed to ensure all customers are taken care of?
Expenses: Any issues with vendors that affect the customer experience. Are there any critical facility or software issues that need to be addressed immediately?
Customer Service/Support: Overview of all customer feedback, especially feedback that requires attention. It is critical that customer satisfaction is a priority.
By focusing on these three key areas, a small business owner can start their day with a clear understanding of their financial health, sales performance, and operational status, enabling them to make proactive and informed decisions.
Reach out to Carter Accounting and Advisory Solutions for your bookkeeping, accounting, and financial reporting needs. We also love to work with small business owners looking for higher level services. Check out our website and schedule a call to see how we can help.
Have a productive day!
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