Generally, people don’t start a business for their love of numbers.
However regardless of the business you’re running, as a business owner you need to have an understanding of the key numbers within it.
Let’s explore this by looking at the Big 3 core activities that it is crucial for any business owner to understand.
- Marketing i.e. activities and people who generate leads, creating opportunities to sell to new customers.
- Sales i.e. the activities and people who sell whatever it is that you do.
- Customer service i.e. the activities and people who take care of how you look after and keep clients.
These activities are vital. However, it is not just about the activities themselves, but crucially the numbers that sit behind them. It’s important to get to a detailed understanding of “If I spend X, I get Y.”
For example, if you spend £100 on a marketing activity, what will the result be?
If you can guarantee it will lead to new clients, and those clients will bring in £500 each a year, perhaps with a need to spend £100 on servicing those clients, then that would likely be a good investment. However, spending money on things just because it’s what you’ve always done, or because it sounded good, or for any other reason than it delivers results in some way, can be where many small businesses fall down. Struggling with marketing inspiration? Read our guide here.
Until you know those numbers, you really have no idea what you can spend on marketing, with any sort of justifiable return on investment. If you don’t know those numbers, it’s really important to find them out – and this is where your accountant comes in.
Not only can they ensure you are compliant with HMRC regulations, but a good accountant can also offer your business a high level of financial insight for your business. With bespoke advice based on your business’s numbers, an accountant can help you reach and exceed business targets, address issues and improve productivity. We can ensure you keep track of the numbers, and help you make sure you’re getting the return on investment you should be.
At d&t, we offer far more than just the numbers – we can offer insight, advice and knowledge to help you reach your business or personal goals. For more information about how we can help you and your business save money, talk to us today.