The past couple posts and blogs I have wrote are about the ENDREA Method™ for Business Development. Now we have reached Step 2 which is [N]umbers. This step, just like it sounds, is the time to go through all of your numbers; costs, profits, budgets, revenue, clients, market share, etc.
I LOVE numbers, yes LOVE. I love seeing numbers, I love working with numbers, I love playing with numbers. Knowing your numbers is very important to the stability and growth of your company so I feel if you don’t love numbers you have to at least be comfortable with numbers. If you aren’t, bring someone in that is comfortable with them. When owning and/or running a business you should always know where your dollars are going and where they are coming from. This is the step to analyze this information and see if any adjustments need to be made.
What I mean by “where your dollars are coming from”? Of course we know they are coming from your clients but there is more to breakdown then just that. Such as: is the majority coming from strategic partners, your inside sales team, certain industry, certain region, etc. This information will help you determine where you may need to put extra time in training or extra praise, and it will help you determine where to spend more advertising dollars.
Where your dollars are going? After dissecting the cost of goods and overhead, is there some money that can be shaved off? When analyzing your costs, you are not always just looking to cut money. You may find that you need to move money; for example, spend less on office supplies and more on IT support or more on your marketing. Or is there a hole that you need to put more money into to help your business grow?
Budgeting; one of the most hated things to discuss. What is your employee budget? Your marketing budget? Your office equipment budget? The reason I hear that this is one of the most hated things to discuss and analyze is because some small and medium businesses aren’t sure how to allocate moneys for their budgets. Typically, I break 1 budget down to several small budgets. This way I can make sure I am staying on track and know exactly where the money is going. For example: Employee Budget can be broken down into division, which can be broken down into type of position. Marketing Budget can be broken down from your overall budget to inbound marketing or outbound marketing, then digital advertising, then where the ads are placed, etc. etc. etc. Your overall budgets are calculated differently depending on the needs of your company, what’s going on in the industry, what your competition is doing, what your goals for your business are, etc. So unfortunately I can’t tell you exactly what percentage of money you should be allocating in each budget and that is why most hate discussing budgets. When I sit down with you I can give you a more accurate assessment on your specific business.
If you would like some assistance analyzing your numbers or more tips, please contact me. My passion is to help by Enriching Dreams of business owners, so let me know how ENDREA can Enrich your business Dreams.
Our Mission at ENDREA: To Improve your Business’ Performance and Provide a Successful Business Development Strategy.
We strive to help business owners develop a solid foundation and business strategy so they can be successful. ENDREA will help assess your current goals and business plan and then assist you in taking that next step towards new heights. From planning and implementing sales strategies to facilitating change in your workforce. ENDREA stands not to be just a leader, but more importantly your partner in working together to achieve a common goal.