What you measure, you improve.
Good reporting in a business changes everything. It helps you make things predictable, and making things predictable makes business fun.
What kind of reporting do you need? First off, you NEED a Profit & Loss Statement. A P&L helps you see whether or not you’re, well, profitable. Without it, it’s very difficult to make decisions about how much to invest in the business.
This is important for the same reason keeping score in a basketball game is important: when you keep score, you know what you need to do to win.
Also, the closer you are to the numbers, the greater your influence over them.
Not every business uses reliable (or any) reporting. And that requires a warning: if you don’t use reliable reporting, it WILL catch up with you (and your bank account is NOT reliable reporting).
Listen to the full episode of LIP Service Contractors to learn the specifics of great reporting.
~ The LIP Service Crew