Take the pulse of your business
Take the pulse of your business…
Yesterday I spoke with a pharmacy owner who was so lost in his own thoughts about success that he forgot to take the pulse of his business on a regular basis. He kept taking a salary out of his business without knowing where he was at the end of each month.
When I took a look at his revenues and debits, it soon became clear to me that he was simply in denial about how much he needed to take from the business without dipping into his credit line. In fact what I was able to show him was his business credit line was increasing every month to the point that it was financing his car and mortgage payments!
Lucky I was able to catch it in time before the next payments were due and set the owner up on a proper methodology of credits and debits and not work on guessing in the dark about the business finances.
Take the pulse of your business every week to know where you will land at the end of the month before I have to revive it for you.
Update: The owner later called me and said it was the best four hour investment he made in three years for his business.
Feel free to contact me for details.
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