When running your business what’s the best way to measure what’s happening, numbers or gut feeling?

May 9th, 2019     Improve Your Business

If things are going well, or not so well in a business there are usually signs that tell you what’s happening. Cashflow may be getting better or worse and the mood of the team may change, you get a feeling for what’s happening.

But is it better to feel this or see the numbers?

Numbers are objective, they are what they are – no fudging, they are the best way of communicating exactly what is happening in your business and you can identify where the problem is. You can show numbers to people, your team and others you want help from, so that they can see what needs to be changed (you can even turn them into graphs or pictures that are easy for people to understand), the size of the numbers tells you exactly how well or poorly things are going. Numbers can tell you what’s happening sooner by picking up on trends and they are good at indicating differences over time periods.

But what numbers?

Numbers that are relevant to what you are trying to measure and control. They need to be sufficiently detailed to give you the information you want. They should be accurate so that you are making decisions based upon the right information and be cost-effective to produce.

But what about how I feel?

Feelings can come from experience, but don’t always help you to decide what needs to be changed and by how much! The feeling may also come too late to make the changes you need. Numbers are easier for less experienced team members to understand as they don’t require perhaps the same amount of time served in the business. The numbers can make you change your feelings and it’s how you feel that spurs you into action.

If you want to talk about what numbers you should be measuring to help you increase your profit, improve your cashflow or have more time for you to do what you want to do get in touch with me on 01803 296678 or email andrew.price@andrewprice.co.uk