Six questions every business owner should be able to answer
Most owners of growing businesses know their turnover and their bank balance. Fewer can answer these with confidence. It takes 60 seconds. No sign-up and no sales pitch.
Could you answer these today, with confidence?
Answer Yes, Roughly or No. Your result appears straight away.
Answer all six to see where you stand.
What each question tells you
What is our real gross margin?
Sales growth can hide falling profitability. If you don’t know your margin by job, product or customer, you can’t price with confidence.
How we help →How much must we sell each day to break even?
A monthly target is abstract. A daily number is something your team can act on.
How we help →What does each employee generate?
Revenue and gross profit per employee tell you whether headcount and output are growing together.
How we help →Which customers make us money, or owe us most?
Revenue quality and cash risk sit in your customer list. Debtor days show how much cash is tied up.
How we help →What profit and tax are we heading for?
Know it during the year and you can still change it. Find out after and you can only pay it.
How we help →Could I take a month off?
If the business needs you watching every number, the finance function isn’t working for you yet.
How we help →Answered fewer than you’d like?
That is common in a growing business, and very fixable. Talk it through at a meeting with Euan.