The quickest way to go broke is to lose track of your bottom line. To help insure your success, you must implement a good bookkeeping/accounting system. Your system does not have to be elaborate but it must be effective. It can be as simple as having a file box with an alphabetical file of your customers and their transactions. There are many bookkeeping systems for sale, choose one. You can visit any stationary or office supply store to investigate the various systems available. Whatever system you use, your system should be easy enough for anyone to understand and most of all accurate.
It is a good idea that at least once a month you total your books to see how your business is doing. Look at your total income and total expenses up till and including that period provides you with a picture of how you are doing. Collect from those who owe you and at the very least, stop extending credit to them. Pay your debts as promptly as possible. Your good name is your best asset. NEVER EVER LOSE TRACK OF YOUR BOTTOM LINE!
Your bottom line is affected by many variables and you must monitor them closely. From time to time re-evaluate your product/service to determine if any improvements can or should be made. Also evaluate your marketing strategy for its effectiveness. No matter how great a product you have, if no one knows about it, you will go broke. Make sure your overall marketing strategy is sending the message you want your customers to receive.
Talk to your employees if you have any to get their input. A happy employee is a productive employee. If you are experiencing a high turnover rate, re-examine your personnel policies and your source of workers. You need reliable and responsible employees. Customers love to develop relationships with their vendors. They become nervous when they deal with a new person every time they deal with you. Stability and reliability are what your customers want and deserve from you. Give it to them.
Do you think it is important to know how your business is doing on a regular basis? How do you keep track of your business? Please share.