The Gift of Looking at the Numbers
Since last October, several people have persevered in the Numbers Accountability Group. We meet once a month as a group, and I also coach each person individually for 30 minutes.
My idea behind starting this group was two-fold. First, we don’t take the time to review our business numbers thoroughly every month, and we might not review them at all if things aren’t going well. Second, we don’t always know about all the information our business numbers can provide. So I started a group to review our numbers together, and to teach new ways to learn more from them.
We’ve talked about a lot of different concepts: cash flow, breakeven point, the lifetime value of a client, and other business numbers topics.
But last month, I thought it would be a good idea to talk about what to do if we’re afraid to look at our business numbers.
Nine Suggestions
Here’s what we came up with together. I think you’ll also find these suggestions helpful if you’re afraid to look at your numbers:
1. Remember my purpose (i.e. why am I doing this business in the first place? Is that purpose still true? Can it sustain you through rough times?).
2. Talk to other people (do you have people who support you? Fellow business owners, leads group, service club, coach?).
3. Meditate (and/or pray). A little quiet time can clear the mind and make the next right action clearer.
4. Take some action (marketing action, perhaps?).
5.Take a break from thinking about my business numbers (sometimes a break creates a breakthrough).
6. Try to identify what my emotions are. This is a good one. There is the thing happening, and then there’s the story about the thing, i.e. “Sales are down, therefore I am a wretch.” (Only the first half of that sentence is true. Are you telling yourself a nasty story about a neutral fact?)
7. Remember to be kind (to yourself, especially).
8. Remember that business goes up and down in cycles (this is true for every business except possibly tax accountants and morticians, but I think even they are not exempt).
9. Build a prudent reserve (AKA business savings).
Prudence Pays
This last one, “Build a prudent reserve,” is possibly one of the most important. If you don’t have money set aside for emergencies, open a savings account RIGHT NOW and get started. I use www.ingdirect.com, but there are other banks that will automatically take money out of your checking account each month. You can start with as little as $10.00 per month, and create a savings account for both your personal and your business expenses. Even $10.00 builds up. It’s the miracle of two things; regular saving, and compound interest.
Tags: Business Numbers, Business Plans, Fear, Truth
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