Phil Renard No Comments

It’s Important to “KNOW WHAT YOU DON’T KNOW”

In today’s trying financial environment many small business owners are feeling as if they have to be experts in “every” aspect of their business. Controlling expenses is critical in order to remain competitive. HOWEVER, a business owner also has to “KNOW WHAT YOU DON’T KNOW” and get help in that area.

Trying to “fix” things yourself is the first thing that comes to mind. But what happens when “your customers” try to “fix it themselves” instead a calling you? They often wind up adding to the problem, and then have to pay more to get it fixed than if they would have called in the expert in the first place.

It’s not a bad thing to get help; in fact, it’s often the smart thing to do AND less expensive in the long run!

You will hear me mention multiple times the three key components to a “Successful and Profitable” business: Marketing, Accounting, and Production.

Most business owners started their business by being experts in the “Production” area of their business. They know, and know well, the product, industry or service they provide. The two major components to production are revenues and costs.

But when it comes to Marketing and Accounting, these areas require a specific expertise. One can often find ways to spend money on Marketing, but you have to “measure” its effectiveness.

So now we come to Accounting; this is what is used to “measure” the “profitability” of Production and the “effectiveness” of Marketing. Accounting is the one function that tells us where we are in our business. It you don’t know where you are, how can you define what needs to be done to get you somewhere?

As a business owner, being able to “Know What You Don’t Know” can be critical to your profitability and success. If you do not fully understand Marketing, get some professional help and put together a comprehensive plan. And I don’t mean call your media sales representative. They are there to sell you what product they represent.

Accounting is much more than entering bills and writing checks. If you want to be able to “measure” components of your business, you have to set up your system so that the input will be effective in being able to produce reports giving you the information you need to make decisions in an “accurate” and “timely” fashion. And as mistakes (from an Accounting perspective) are made over time, it takes more time and money for your accountant to correct them so they can properly complete your taxes or other reports.

Ask for help early to save you money later.

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