LJM Bookkeeping Ltd - Offering an ACE service
What numbers matter in business?
What numbers matter in business?
This may be something which you think about a lot as a business owner. There’s so many numbers to think about and running through your head, but which ones actually matter?
Age is mind over matter! It doesn’t matter if you’ve only just started out or you’ve been running your business for decades. As long as you know you’re the expert in your field, you deliver what your client wants and give them an excellent service, it really doesn’t matter how long you’ve been in business for. Don’t let this hold you back or put you off, thinking that people have been doing it for longer than you. No one minds what part of your journey you are at.
You may worry that you don’t have any employees. You may choose to use freelancers or it may just be you running the show on your own. None of this matters. All that matters is that you’re managing it. You can deliver expectations and the workload isn’t causing an impact on running your business. If you feel that it is, then outsourcing can be a really good option for you. There’s no long term commitment and if the work suddenly dries up you don’t need to worry about making redundancies. A freelancer can be there to support you when you need it most, and pick things back up again as and when you need them. Did you know your bookkeeping is one of the easiest things you can outsource? It doesn’t require much of your input at all meaning you’ll have lots more time on your hands!
Does it matter how many clients you have or how many orders you receive? You may base your business around this at first. But really, all that matters is that you have a steady cash flow. You may have one or 2 quality clients who spend a lot of money with you, which can be so much better than having lots and lots of clients who only spend a small amount. Don’t value your business on the quantity of clients but the quality.
You may hear other business owners bragging about how much turnover they have made. But actually what’s really key in business is the profit you make. You can have a huge amount of turnover but if you have a lot of expenses too then the profit may be minimal. It’s best to measure how profitable your business is than worrying about the turnover. However, it can give you motivation seeing yourself hit those milestones and it’s also important to keep a close eye on your turnover in case you need to register for VAT.
The amount you pay yourself is significant to you. It will be one of the main reasons you started your business. It may take a while but you will get to a point with hard work and dedication that you’re happy with the money you get at the end of each month. Or whenever you choose to pay yourself for that matter! Measuring this from the beginning will show you how far you have come and what a difference it’s made to your life.
What really matters in business is that you’ve created a place where people will come because they trust you, they know you are reputable and they will get the best service possible. Your customers are the rock of your business, so concentrate on them and everything else will fall into place!
Knowing your numbers when it comes to your business finances can drive and motivate you, if you really understand them. You may need some support from a bookkeeper to get the most out of your business finances and set the goals you want your business to achieve.
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office@ljmbookkeeping.co.uk
01733 602492
LJM Bookkeeping Ltd - Company number: 13698252
Registered Address: Suite 330, 4 Blenheim Court, Peppercorn Close, Peterborough, PE1 2DU
