Are You Driving Your Business Only Looking in the Rear-view Mirror?

Cash is your business fuel gauge, combined with your Key Performance Indicators (KPIs), you have the whole dashboard. Without a dashboard, it’s like driving whilst looking in the rear-view mirror. Difficult to know whether to speed up, or if you have enough fuel or if you’re headed for a tree! 

Just as a doctor will measure your physical health with a few important numbers: heart rate, blood pressure, temperature, as a business owner there are some ‘vital signs’ of your business that will indicate the health of your business.  

So, what should you be looking out for? Your rear-view mirror – consists of your profit and loss statement, breakeven and balance sheet. The latter includes the three key elements for your working capital (reach out if, like most of my new clients, you need clarity on this). 

Your Dashboard predicts forward looking performance. These numbers typically come from sales, marketing and finance: Cash Flow Forecast and Key Performance Indicators (KPIs) related to projected leads, conversion, revenue, profit and work from existing clients.