Looking to run your business with confidence?
Gaining more personal self-confidence requires getting to know ourselves better. Similarly, to run our business with more certainty, we must be well know what’s going on in it.
A person getting to know herself/himself better is complicated. It can even require a therapist!
Thankfully, this is not the case with our business.
In fact, we only need to write down three pieces of information daily.
Ready to gain more control and confidence? Great! Let’s take a look at how.
What information do I need to feel confident?
There is a lot of information that is useful for your business.
Generally, the more information, the more control you can achieve and more secure in your decisions you will feel.
But, let’s be honest—recording everything can be a real pain!
We’re going to be realistic here. Nobody starts a business because they love writing down mundane things in a notebook.
That said, these mundane things, this information, are critical for you to have the certainty necessary to run your business and make positive decisions.
The three most important things for this are:
- Money coming in
- Money going out
- Inventory/stock levels
Now, let’s understand the best ways to record this information.
Money coming in: Confidence from sales
Generally, money coming into your business means you’ve made a sale.
Congratulations!🎉
That means your business made money as well as freed itself of some inventory or provided a service.
The truth is selling is the toughest part, so we let’s celebrate and memorialize it!
How do you prefer noting things? In a paper notebook, a spreadsheet, some software?
Whatever your preference, grab it and write down the following:
- Date of the sale
- Quantity sold
- Product/service sold
- Total amount
Knowing how your sales are doing gives some confidence, doesn’t it?
Money going out: Security in investments
The American professor of business, Scott Galloway, says that an entrepreneur is the person who is capable of signing the front of a check just as much as the back.
Sometimes, spending money stings, but that is how investing works!
It is necessary to grow a business.
But, making the decision to invest requires confidence as an entrepreneur.
And, when we know what’s going on in our business, we feeling secure enough is much easier.
So, the same way we note our sales, we will register our purchases and expenses. Write down:
- Date of expense
- Quantity bought
- Product/service bought
- Total amount
Inventory/stock levels: Where good business management starts
The good thing about this last type of business-critical information is that we really only need to write it down once!
Money coming in and going out will happen all the time.
However, once we know the current amounts of everything in our inventory, our sales and expenses records will define the quantities we have from here on out.
Additionally, we have to record less information:
- Date of recording
- Product
- Quantity
That’s it!
Now, what can make your life easier in the long-run is to also include these two things:
- Cost per unit
- Price
Conclusion: To run your business with confidence is to run your business informed
Writing down the inventory we have reveals a very detailed snapshot to run your business with confidence.
This information—money coming in, money going out, and inventory levels—is critical for running your business with confidence.
They give us clarity and security to manage effectively.
In the end, with these pieces of information, you can know how your business is doing without even stepping foot inside it!
Almost magic, right?🤗
What do you think? Ready to get a clear view of your business?
To learn how to use the information you collect in your decision-making, see our post “Invest in your business: How to take advantage of your business data.”
Tired of dealing with papers and math? Na Real does that all for you, saving you time, sparing you stress, and revealing the business opportunities hidden in your numbers. Try it out!
