Growth does NOT equal Profit
Updated: Jul 23, 2018
Just because you are growing, does not mean you are making more money.
Strange to think, huh? Once upon a time, before we were bookkeeping ninjas, we believed growth equaled an increase in profit; more money in our pockets. But now we know the truth and the numbers don't lie.
We run into business owners all the time and the frustration seems to be the same:
" I am growing. I'm selling more product, I hired an employee, and opened new locations, but I am working harder then ever for less money. Why?"
We hear it often. The sad call of the Sirens luring us into a false sense of safety with our growing business.
Growth and selling more must mean I'm making more. While growth can increase profit, if done incorrectly, it will actual do the opposite .
Business decisions are being made but not based on accurate financials. When we make what we think our wise decisions with out the full financial picture we can end up in hot water and fast.
Have you ever made a big decision and just hoped it worked out? Hoped that magically the spaceship would get to the moon, with or without the data to back it up?
We have, and it wasn't pretty. We want to help you avoid the downfalls of that.
Understand your finances
Look hard enough and you can learn what works. You can look at the numbers and see the activity that is bringing the most profit. You can make that big decision confidently.
The key is to get a good grasp on your business' financial health. When you understand your financials you can:
1. Work smarter not harder
2. Make the best decision for your business based on financial data
3. See where you are making the most profit to focus your efforts
4. Keep more money in your pocket and only spend when it will help your business
Do you want to understand you finances to make sure you are not just growing but also increasing profit? Work less and enjoy the things you love more? We are here to help!
Call us today: 541-508-7650