Do you know if your business is healthy? If you answer “yes” to this question then, how do you know if your business is really healthy? Are you aware if your financial information is accurate and current? Are you able to understand your financial information and get what you need to know out of it? Do you have a solid filing system in place? Are you really managing your business with the best business practices? These are just some of the questions that most business consultants ask their clients, if you were not able to answer them in a positive way, then it might be time to set up an appointment with a specialist in bookkeeping in Orange County.
So, actually, the most important question that any small business owner should be asking, should be, am I making money? There are three possible answers to this question, “yes”, “no” or “I don’t know”. When you are sure that your business is making money, meaning that you are able to pay all your financial commitments and still have money left in your bank account, the next question that you should ask yourself is, “could I be doing better?” This is a question that should be answered after a thorough analysis of your business. Everybody would say right away “yes, I could be doing better” and of course, we all would always want more, but you should approach this question with a business mentality, sometimes, our business is going down the business life cycle, we are attending a market that is on its way of dying and it is next to impossible to make it grow as it is, think about someone that sells traditional typewriters, there are probably some people out there interested in buying a typewriter, but if we are honest, this market is an almost extinct market niche. After reviewing this information, try to answer the question again.
Of course, the typewriter example is a very extreme and easy to understand case, but it can also apply to many other businesses where the competition is too high and demand becomes lower every year. However, if you could be making more money, there are some other questions that you should be asking yourself, such as, where is your money coming from? Do you know where you are making the most money? What is your profit margin? Which financial information is the most important for you and for what reasons? These are some of the most important questions to get in the path of success, for any business owner.
Most small business owners that are actively involved in their businesses are familiar with all the questions that we presented above, but very few understand the financial information and have accurate figures to help them make business decisions that will lead to the business growth at the long run, instead, they rely on their experience instead of using solid information and accurate numbers to back up their decisions.
If after reading this article you are having second thoughts about your performance, try setting an appointment with the specialist in bookkeeping Orange County.