One of the hardest things to do is understand if your business is making money or if your business is profitable. When we run a business, we will have money come in, go out and jump around like crazy. For some people, seeing cash in the bank really tells them that they are profitable. However, if this the case? This is why we want to look at franchise analytics and other indicators to tell us if we are really making money or not.
Take a good look at your expenses
To see if you are really profitable you want to look at all of your expenses. This means everything that you spend money on from paperclips to payroll. When we take a look at our expenses we can really see where our money is going and if it is in merchandise, supplies, labor or whatever. People don’t know where their money is most of the time. It may look good on paper, but when you look at the numbers, you may turn out to be really surprised.
Look at the projected future
If you are just starting out then it might be difficult to really predict where you are going or what will happen. However, if you look at what is going on around you now and what others are doing, you can get a good idea as to what is going on. Many aspects of your business may have nothing to do with you or your actions. What another person is doing half a world away can have dramatic consequences to the function ability of your business.
Look at opportunities
As a business owner, you want to look at different opportunities that present themselves. Some of these will be subtle and others will be right in your face. If you want to have your business become a success you need to learn how to spot these and what to do when they are presented.