Updated: Nov 18, 2020
What would it be like if you only had a fuel gauge as a dial to drive your car around?
So you're probably wondering what the hell does that actually mean?
Well what I see in a lot of businesses is that the owner is only using their bank balance to make decisions in the way they are driving their business forward.
What are some of the other dials we use in the car?
Obviously in a car we have our speedometer that tells us how fast we're going.
You have a rev counter.
You have temperature indicator.
You have some kind of odometer that tells us how many kilometres that we've done?
There's a whole bunch of different instruments that give us feedback on how we travelling and how our vehicle is performing as well, not to mention things like safety indicators and
all sorts of things.
So what are the equivalents in our business to the dials that we use in our car?
Because if we were ignoring some of the dials in our car what's going to happen?
Of course we're going to have mechanical issues.
We may get booked for speeding.
We may do a whole bunch of silly things that end up costing us a lot of money in the future.
It's the same with what you doing with your business.
What are the other dials you can have in your business?
Obviously you've got your fuel gauge, which is your bank balance.
But things like your profit loss statement, are you running your business
profitably for a start, because if you are not there's a fair chance that you or your car (ie your business).
Your balance sheet and your cash statement, your cash flow projections, understanding your break even figures are all of those are important dials you can be using in your business to help you make better decisions, so you don't burn yourself out or burn your business out.
So make sure it's not just using your bank balance or your fuel gauge to drive
your business forwards.
Have a fantastic Friday.