Speed Kills

There were two tragic accidents this weekend where speed was a contributing factor and lives were needlessly lost.

Are you killing your business by not being fast enough though?  The business environment is constantly changing.  Your own business changes from day to day, I’m sure, just as mine does.  Dashboard reports can really help you stay up on those changes, and be able to respond speedily.

So what is a dashboard report?

It’s anything you want it to be!  It can be as complicated or as simple as you want to make it.  You just need to ask yourself what will help you run your business better?

If you sell a product, how many turns of your inventory do you have a year?  Are you tracking that per product, so you know what your fast sellers are?

If you bill your customers or clients, on average, how many days does it take to collect payment?

How quickly are you paying your bills?

How did all of those do in previous months, quarters or years?

How are your sales this month compared to sales for the same month in previous years?

How are you doing in comparison to your budget?

The key to good dashboard reports is they are 1) specific, and 2) measurable or comparable to a benchmark whether from your own business or your industry.

All of these are crucial numbers to help you respond quickly to changes in your business or business environment.  How?  Here’s a quick one.  If your number of days to receiving payment from your customers is high, and your days to payment for your own business bills is high, why don’t you focus some time this week on collecting from your latest customers?  You can then put that money into paying your own bills.