As a top virtual chief financial officer with decades of experience, we know that most business owners who are growth minded are not only passionate about their company but also extremely hard-working visionaries. Undeniably, these are all admirable qualities and what has probably ultimately fueled you to achieve the position you are in today. But, do you know the hard facts about your business?
If you are truly looking to grow, our top virtual chief financial officer recommends you are able to answer the following 3 questions because the future of your business absolutely depends on it.
- What Are Your Sales and Profit Margins?
This is always the first question any growth seeking business needs to have the answer to. Do you have any sales? What are they? Sales is a vital measurement of business health and knowing your sales numbers allows you to fine tune your marketing efforts and scan for trends. By following trends (whether positive or negative) you can effectively identify:
- A growing or slowing business
- Successful or unsuccessful marketing/branding tactics
- Consequences of a shifting market, competitor changes, and/or leadership decisions
In addition to sales, it’s important to know your profit margins so you can understand whether or not you can afford to cover payroll, cost of goods sold, and overhead costs. Additionally, you can determine whether your business can withstand increasing expenses or if you need to cut back.
- Who Are Your Customers?
Understanding your customer base is vital to growth. By understanding who your customers are, where to find them, and how to reach them, you can determine your customer acquisition cost and the lifetime value of your customer; both of which are important KPIs.
- Is Your Business Scalable?
How much potential growth does your business actually have? Is there more market share to be had? How will you lure business from your competitors? What ways can you differentiate yourself from competitors?
Being able to answer these questions is a great start at embarking on your journey towards growth. For more information on growing your business or to get further clarity on your numbers, let our top virtual chief financial officer help! Schedule your free strategy session now or give us a call at 1 (888) 400-2148.