youtube.JPGfacebook.JPGtwitter.JPGgoogleplus.jpg

800-348-5194 (Toll Free in WY)
email:WSBDC@uwyo.edu

Guest Blogger: Rod Trahan "Once a Year Is Not Enough, Know What's Happening In Your Game"

Aug 21, 2009

Today's guest blogger is Rod Trahan, MBA, Owner, ActionCoach-Streamline Enterprises. Rod coaches entrepreneurs in five key areas; the emphasis on each area depends on individual needs, the type of business, and goals. The key areas are: Sales; Marketing and Advertising; Team Building and Recruitment; Systems and Business Development; and, Customer Service. Visit Rod at: http://www.actioncoach.com/rodtrahan/

 

Can you imagine how a NBA Basketball game would turn out if during game the visiting teams coaching staff were required to sit outside the arena without any contact with their team until the end of the game?  Do you think that team would be at a disadvantage?  Worse yet, what if the visiting team were not allowed to look at the score-board to determine the score and amount of time left in the game? Who would call the team in and run a special play to inbound the ball, or beat a change up in the defensive style? Who would substitute new players in to take advantage of an opportunity presented by the other team’s defense?  Can you imagine playing the game without knowing who is winning and by how much?

 

Only visiting your accountant at the end of the business year versus once a quarter and reviewing financials monthly, is like playing the game of business similar to the above basketball game. Your accountant will help you to compile your financials so you do know what the score is in your business game all along the way.  By doing this quarterly and reviewing financials you will know much sooner if something negative is beginning to happen in your business. 

 

A colleague of mine was visited by the owners of a new winery in California that couldn’t figure out why they were selling so much of their product yet they never had any money left over at the end of each month.  

 

Turns out they only calculated their break-even in their initial business plan and never revisited it again until their visit with him (12 months later).  Their actual costs differed from their projected costs so they were operating under faulty assumptions. This popular business became one of the 80% of businesses that fail within the first five years.

 

Wouldn’t you rather find out sooner than later that you were selling your product or service for less than break-even?



Tags:
Category: Accounting

Please add your bio info through your member profile page, or through your dashboard.


Please add a comment

Leave a Reply



(Your email will not be publicly displayed.)


Captcha Code

Click the image to see another captcha.