How do you know how well you are doing if you don’t measure it?
Ok, how about this… How would you know who was winning if they dint keep score?
Now try this: How do you know how you are doing if you aren’t keeping score?
And the better question is: how do you get better if you don’t know to get better?
I am talking about metrics. Metrics is how we can keep score on everything we do. If it has and input and an output, you can measure it. But the thing is, most of us don’t measure anything. How long does it take you to service and account, run a test, write a report, or sale a new customer?
Peter Drucker said “What get’s measured get’s improved.”
So, if we aren’t measuring, we don’t have the structure to improve.
One of the things we need to measure in business is our business. The is a limitless supply of items we can measure in business. But measuring them is only step one. Know what to do with that data and then how to know you are improvement is what is needed.
I’m guessing you are like me and you use a handful of metrics. But what about the ones you don’t know to use because you’ve never heard of them. Those could be the ones that solve that problem you are dealing with. IF you don’t know what they are, you cannot benefit from them.
That’s why I partner with people that know more than I do. Napoleon Hill in Think and Grow Rich mentioned how Henry Ford admitted under oath that he didn’t know everything he needed to know about business. But he had access to those people he needed to help him fill in the gaps. What are your gaps? How will you fill them in?
Having a partner like Mr. Ford alluded to is key. Today I talk with one of those partners,Adam Lean of The CFO Project. Adam lets us know what we should be thinking about when it comes to tracking how we are doing in business.
Many have asked me about how they can find someone to help them in particular areas like:
- Financial (CFO)
- Technical
- Virtual assistance
- Insurance
- And the list goes on…
I and the Scaling UP! H2O team have partnered with individuals and companies we trust and can help you with your questions. Remember, Henry Ford didn’t know everything, he just knew who had the information he needed when he needed it. Isn’t it time you started thinking like Mr. Ford?
Go to scalinguph2o.com/ta to find a trusted advisor to help you today.
Timestamps:
Hear more about Adam’s background [08:48]
At what point does a business need a CFO? [12:50]
What aspects of financials are important to consider for a successful business? [16:41]
Understanding sustainable growth rate [22:17]
What does the relationship with the CFO look like? [29:30]
Important metrics for businesses to track [41:10]
Where to start learning more about your financials [45:11]
Lightning round questions [47:40]
Quotes:
“More often than not accounting is just looking at what happened, not how to be proactive to make something happen.” – Adam Lean
“Fifty percent of all small businesses will fail within the first five years. It’s because they did not focus on the right things that matter to have a profitable business.” – Adam Lean
“Most business owners are very busy and are focused on the day to day operations because that is what they enjoy doing. In order to stay in business you’ve got to focus on the most important things needed to have a profitable business which turns into cash flow.” – Adam Lean
“Imagine going to a baseball game and you don’t know what the score is. So many people run their businesses that way and they simply don’t realize how much that information can lead to better decisions” – Adam Lean
Connect with Adam Lean:
LinkedIn: in/adamlean
Schedule a time to talk to Adam!
Links Mentioned:
Books Mentioned:
The E-Myth Revisited by Michael E. Gerber
Financial Intelligence for Entrepreneurs by Karen Berman and Joe Knight
