“I always tell the truth–even when I lie. What am I?”
Last week I posted this riddle on social media. While there were some clever and seemingly correct responses, no one was able to solve my riddle. As I revealed on Facebook live, the answer is: NUMBERS. Numbers never lie, or do they?
Being busy doesn’t always equal profits
As entrepreneurs it is easy to get caught up in the day to day operations of your business. Some days you rarely have time to break for lunch, let alone stare at a set of numbers. I’m sure we’ve all had those weeks that seem way busier than others. At the end of the week, however, your revenue isn’t any different than the week prior. How can that be? Setting aside time to review your revenue and where it came from (your numbers) can help you identify gaps in your scheduling, productivity and profits.
Understanding Your Peaks and Valleys
Complete this sentence: “My most profitable month of the year is _________.” If you aren’t sure, you could be setting yourself up for a bumpy road ahead. Every business, even Walmart, has peaks and valleys in revenue and profits. Understanding your peaks and valleys will allow you to better plan for when business is bound to be booming and anticipate lean times when clients may book less.
Tell the Truth!
Setting aside time to regularly review your income, costs, and profits on a weekly, monthly and annual basis can help you identify ways to grow and where you’re slow. If, however, you don’t keep accurate records or include all your income sources and every dime you spent on your business, the calculations and numbers that result won’t tell the truth. Sure, you’ll get a total, but it won’t be accurate. Garbage in, results in garbage out of your results.
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