Broken Record

I Sound Like a Broken Record…. You Must Know Your Numbers!

The economic news is not getting better. Inflation hit another 40-year record. The Fed hints at a .75% rate hike. Stocks are in bear market territory. Inflation may not have peaked yet, and the prospects for a “soft-landing” seem to be fading.

Know Your Numbers! That is the one thing every business leader should be doing now.

Data2Profit works with owners, presidents, and business teams to reveal the sources of their sales, how to improve margins, and opportunities to control spending.

Uncertainty raises questions. What questions keep you awake?

• When customers cut back, how much cushion do we have?

• If key material costs continue to soar, how much should we raise prices?

• If we raise prices again, will even loyal customers say “enough!”

• Where else can we save to keep our people?

Prepare a Forecast. Even if you know it will be wrong.

So why do it? A forecast allows you to change different assumptions and see how profit and cash will be affected. The idea is to have some fact-based perspective in advance, and avoid an emotional reaction, if, and when, conditions go south.

Answering questions and making predictions is hard without good information. Some symptoms you don’t have the right data include:

• Different revenue streams are reported in one total Income Statement

• Sales and Cost of Sales do not line up the same way, so product-level margins are unknown

• 50+ expense accounts are in alphabetical order and too hard to analyze

• Cash flow… “what’s that again?”

Uncertainty breeds anxiety. At Data2Profit, our job is to show you how your numbers can help you make fact-based decisions, improve productivity, and grow profits.

Improve your financial confidence. Call us today 920-948-3355 or click below to schedule your discovery call.