Translating Business Success to a Financial Success in Business Venstone AG
Business success may mean that you launched your business, you have happy clients, and you are selling your products or services. By now you have been doing it for a few years. Many successful businesses are barely surviving financially and it may have little to do with the economy. The level of business activity or revenues is affected by the economy, some business are thriving in this economy while others have been impacted negatively.
Financial success in business means that the business is profitable and you, the entrepreneur, are receiving the income you planned to receive from your business.
The first and the most critical step in transitioning from having successful business to having financial success in business is knowing and tracking your revenues, all the costs, and knowing if you produced positive or negative profit (net income) on a monthly basis. Most entrepreneurs have an idea of what their revenues are, where they will come from, and what their expenses are. It is the most common misconception among us, that having an idea is all that is needed to have financial success.
Tracking your revenues and expenses monthly does not have to be hard, or require a lot of effort. You can keep all the receipt and give them to your bookkeeper or an accountant, but it can be even easier than that.
Automating the tracking of the financial information for your business will make your life easier, and it will provide you with an invaluable foundation for financial success. The entrepreneurs I worked with that gained understanding of all the costs of delivering their product or service used it to design and plan the future of their business.