[read time: before you read your next report]
So with so little time, is the answer to just ignore all of them???
Well – probably not. Although some entrepreneurs have a keen sense of every aspect of their business at any point in time, most business owners can really benefit from taking time each month to review their reports and have a hard look at their business results. We find the key balance between managing a limited supply of time, with reviewing your performance, is to prioritize the reports you MUST review each month.
So if I had to pick one, which report should it be???
We don’t like to over-simplify – but if you had to choose just one – we would recommend the “mighty” Gross Profit Report. Most business owners have a tendency to prefer reviewing sales reports for their operations; however, we would argue that the direct costs associated with those sales results are just as valuable.
A properly structured Gross Profit Report will give you the ‘controllable’ profitability of your company. By knowing the Gross Profit of your business (revenues less direct costs incurred to create those revenues), it gives you the exact formula of what products / services are driving your business – and where you should focus your time and energy.
By keeping a close eye on the Gross Profit, you get a true feel for how to grow your business to the next level. And for that reason alone, the Gross Profit Report can be characterized as nothing less than “mighty”!!!