Page 237 - merged.pdf

CHAPTER 8 MASTERING YOUR MONEY

When You Constantly Track Your Numbers,
You Can Keep Adjusting Your Strategy to Meet
Your Goals

Your financial figures tell you whether your business is on
track at meeting its goals. If you don’t pay attention to it
constantly, your business could be going off track and by the
time you figure it out, it would be too late!

Here are some of the most common scenarios that happen to
startup companies. By not tracking his expenses closely, the
business owner is not aware that his costs are actually
overshooting his budgeted amount. By the end of the year,
he finds that he has actually been making a loss! If he had
known this fact immediately, he could have taken steps to
reduce his costs and turn around a profit.

Another common example is that the business owner is not
aware that sales revenue is not coming in as projected. As a
result, he will again find himself making a loss at the end of
the year. What has made my company so successful at hitting
its sales and profit targets every year is that we track our sales
figures by the hour! The moment sales are made at our
payment counter, an SMS is sent to my CEO and the product
manager within an hour. By the next three hours, the sales
figures are updated in our computer’s accounting system. My
CEO then studies the consolidated report of the entire sales
revenue generated by all the product divisions weekly.

The moment our sales revenue drops below our projected
target for that week, we will immediately change our strategy
and take new actions. We may place more advertisements,
create new marketing channels, offer a special promotion,
push our sales people harder, increase telemarketing efforts
and do whatever it takes to push up the figures!

228 SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES