In my previous career as an investment banker, it was abundantly clear that the businesses (we financed) that kept a regular check in with their numbers were up to 55% more likely to hit their business projections, growing their business on cue and almost 20% of those far exceeded their original growth targets.
If you think that business dashboards are only for big companies, think again. I was speaking to one of our newer clients who runs a couple of fitness studios and bootcamps and he was tearing his hair out at why his bank balance had suddenly plummeted.
Plenty of new people in the gym. He was run off his feet with his staff having to work more than usual.
So he was simply baffled to find that his bank balance was dropping!
He surmised that he was paying too much for his new marketing campaign, so wanted put a halt to that straight away?
What do you think? Right decision?
Again, simply using this one-dimensional indicator such as cash in the bank is not sufficient to get a good idea of what is actually going wrong in your business.
I get it that the day-to-day rush of running your business consumes almost all of your time.
But truth is, it can take as little as 10 minutes once a week or 20 minutes once a month to check in and review your business dashboard AND put a few course corrections in place.
If my client had a simple dashboard in place he would have noticed that it wasn’t new client revenue that had dropped, in fact there were several other things going on…
(1) his monthly recurring revenue from ongoing bootcamp sessions were dropping and that clients were cancelling, defaulting or deferring payments – against the terms of their contract.
(2) AND he was busy with new sign ups (which were often unpaid trial sessions) so he was incurring more expenses – marketing and staff time – to acquire these new leads and sales.
A double whammy for cash, but not if he continues with his marketing strategy and AT THE SAME TIME, started looking into why his existing clients were dropping off in order to put a stop to it.