When you know which aspects of your business are most profitable and which need more focus, you can realign resources accordingly or focus your business development efforts in a different area.
Understand what to focus on
Create clear financial goals
Having reviewed the previous two years’ accounts, you will be able to establish clear financial goals, based on facts. You can break down the goals to clearly show how many services / products you need to sell to enable you to reach, or exceed, these.
Once your financial goals have been set, you can clearly measure progress against them. Track how many services / products you have sold, check that everything is going according to schedule, and know if the best sellers are those that provide the highest profit.
Understanding annual trends in your business will help you plan accordingly. If September is your busiest month you may need to prepare to take on some freelancers to assist during that time or keep your diary as clear as possible to ensure you meet the business demands.
A review of spending is as important as setting and tracking turnover goals. A financial report will show where money is being spent, and potential opportunities to reduce these. A review of spending habits could increase your annual profit.
Remove the fear
Take away any fear you may feel about finances. Once you understand what the numbers are, and the impact they can have on your business, you will be able to act accordingly and prepare for success.