It’s always a great thrill when you look at your Profit & Loss and realise you’ve made a profit. It’s hard to think of a situation where the sudden arrival of a substantial profit is not welcomed with open arms.
As a small business owner profit is something that we desire and hopefully achieve. However, it shouldn’t come to you as a surprise. You shouldn’t rely on luck to bring home the bacon month in and month out, year on year. For that you need a plan.
Planned profit is the best profit. As a business owner it is important to understand the growth indicators and triggers of each activity you undertake. Take time to understand why profit fluctuations occurs so its not left totally to chance.
As always it comes down to knowing your numbers and being able to look at your Profit & Loss and understand what has occurred and why. This is why it is important to align yourself with a good accountant. Don’t be afraid to ask them for help and understanding. Your accountant can look at and explain your numbers, assist with budgets and make sure you are on track to achieve your business and personal goals.
The truth is, if you don’t know your numbers and don’t have some sort of profit improvement plan in place then you will always struggle. It’s much harder to take a planned holiday – the type where you are not sneaking back to the room to check emails and payments and the like – when you don’t know how the business will perform in your absence. Even on holiday you can never truly switch off and that is not sustainable.