Tweak Your Biz » Finance » Use ‘Business Owner Snacks’ To Make Decisions Quickly

Use ‘Business Owner Snacks’ To Make Decisions Quickly



Entrepreneurs like to keep moving and make decisions quickly. The successful ones have the intel to make quick but well informed decisions. How can they get that intel so fast? Don’t they have to wait for their accountant to prepare a set of financial statements and business metrics and explain it to them first?

When my son was small, he was far too busy to sit down and eat. I would prepare bite sized chunks of food and literally fire them into his mouth as he flashed past me during his busy day.

As a business owner, I want the same treatment from my support team. Not with food :) , but with business metrics and finance info. Here’s what I want to know, and when I want to know it, in bite sizes chunks, prefereably by text or email:

Every day:

  • Bank Balance
  • Sales Yesterday
  • No of new customers yesterday
  • No of new trials yesterday

Weekly:

  • Top 3 Quotes to follow up
  • Total and Top 3 Who we owe and how much
  • Total and Top 3 Who owes us and how much
  • No of new customers last week
  • Any customers lost last week

Monthly:

  • Profit figure and margin, up or down from last month, by how much
  • Number of new customers, up or down from last month
  • Number of lost customers, up or down from last month
  • Debtor Days, up or down
  • Sales for the month up or down

Vat time (every two months for us in Ireland):

  • Bank Balance
  • Vat we owe

A steady diet of information nuggets strengthens a business decision making metabolism.

Most business owners are paying for this information to be prepared, but many never receive it in manageable, timely chunks. Personally I found the once a year summons to my accountant’s office to “call in and discuss my accounts” was both not enough and too much to digest in one meal.

But if you have any one or all of these resources at your disposal: accounting software, a bookeeper, an accountant, employees, then a little process tweaking should get you at least some of what you need when you need it.

In the next post, I’ll explain what you can do/get done behind the scenes to ensure you get fed quality, organic information rather than high fructose corn syrup.

Meanwhile, I’d love to hear what key stats other business owners track either formally or informally.

Also, what would you like to be fed?

“Image from Igor Dutina /Shutterstock.”



The Author:

Aileen is passionate about entrepreneurs getting their heads round financial control early on in their business. Like Oprah and Tommy Hilfiger, she believes it is the true key to success. As co-owner of Aisling Software Ltd, she provides SortMyBooks online accounts software and Financial Training for self-employed people. Her background is in programming and systems analysis, and having done the corporate thing in companies like Pepsi, Canada Dry and Coors Beer in New York, and the Department of Revenue and Tax on the island paradise of Guam, and GE Money in Dublin, when she started her own small business in Killarney, the traditional methods of bookkeeping and accounting and the traditionally low expectations for financial knowledge and control for self employed people frankly drove her mad. Together with her sister Anne, they found a better way and produced SortMyBooks Accounting software for small businesses, accompanied by the all-important Financial Control Training. The company headed into the Cloud Computing arena with the launch of SortMyBooks Online Accounting in 2010. This has brought even more flexibility to the busy entrepreneur who wants to watch their business grow from anywhere in the world. Just one year on, the software won the IIA Netvisionary award and was shortlisted for the Eircom Spiders. Aileen is happy to speak at any small business event where the focus is to simplify the concepts of accounting, tax, profit and financial control in general. Give her a call! http://www.sortmybooks.com

Add Your Comment

  • http://www.btbtraining.com/blog Niall Devitt

    Hi Elli, great post and a really interesting perspective. I have often thought that choice can easily act as a hindrance to taking action, what do you think? Thanks for stimulating as always :-)

  • http://www.consultingexcellence.ie Jackie Prendergast

    Elli – another really great post. You are so right about moving forward – I definitely think the one thing that often stops us is that we constantly look for the big thing that will make a difference. So perhaps it is time to refocus and recognise that the small things done well and continuously can propel is forward just the same.

  • http://www.TonyJohnston.biz/ Tony Johnston

    It’s a good thing there aren’t too many picket fences in the business world or else we would likely see lots of great people struggling stuck on top of them. Elli’s article here should help business owners and CEOs avoid that fate as long as once they get through reading her great advice, they think / decide / act without hesitation or regret. Come on now Guys & Gals, seriously, you CAN do it.

  • Anonymous

    Niall,

    Research is showing that too many choices makes decision-making too difficult. In this case, the choice is simple but life-altering. That is where it gets complicated. Degas is quoted as saying that “self-doubt kills ability.” This is why we take so much time prolonging whether or not to take our businesses to more sophisticated levels.

  • Anonymous

    Jackie,

    The silver bullet, the big break don’t really exist. When we see someone become successful, we don’t see the little things he/she did so it seems like they got a big break. It’s the analogy of eating the elephant. You can only eat the elephant one bite at a time.

  • Anonymous

    Very true, very true! It’s just amazing how much we build up all that stuff in an effort to not succeed! Once you break through, you often wonder why you made all that fuss about it as well. As they say, if it doesn’t kill you….

  • Anonymous

    Tony,

    Your enthusiasm is contagious! Thank you for the kind words!

  • Anonymous

    Lewis,

    Love that last bit about “if it doesn’t kill you…” I suppose you might have been paraphrasing Nietzche but it also suggests the possibility of going forward and letting things progress until you reach your vision. And yes, we do make a lot of fuss which makes going forward rather anticlimatic. LOL

  • http://www.getresults.com GetResults

    Great points, Elli. And you are quite right. The first step – any first step – can not be reversed. The very act of taking the step changes your perspective and consequently, changes everything. Going back is impossible. Perhaps that’s why the first step is sometimes never taken. The fear takes over, paralysis sets in and the comfort of the Same Old Stuff prevails. Thanks for sharing.

  • http://www.inclinedesign.info CASUDI

    I have seen business owners not take those small decisive steps, that could move them forward in a positive direction, and instead they wait for the big break. And of course we all know what happens to those that “wait”. This is where even minimal coaching can be very effective in not only the first step implemented (the irreversible first one) but a slow (or not so slow) build on that first step. The choice is always there, however the incentive to make the choice often needs reinforcement. Vision without implementation is hallucination! Great discussion. @CASUDI

  • http://blog.myprojecttracker.com Barney Austen

    Hi Elli. Another great post – fair play. The irreversible step is something to be embraced rather than feared. As many of us have pointed out in the past in various guises within posts, this is easier said than done!

  • http://twitter.com/MiriamAhern Miriam Ahern

    Very interesting post Elli. Every business no matter how big or small should have a clear vision. I work with companies to extrapolate that vision out into a mission statement and values statements. I find this helps with the subsequent strategic planning process as it lends great clarity to the direction and intent of the enterprise. Your point is well made, that first tenuous step is often the tipping point that you need.

  • Anonymous

    John,

    Your point about the change in perspective may be the most misunderstood part of the process. Once you’ve opened your mind up to see a different way, you cannot be the same every again! This is true even if you don’t take that first step.

  • Anonymous

    CASUDI,

    Ooh, “vision without implementation is hallucination.” The power of the mind is formidable! Your point about choice needing reinforcement makes so much sense. Perhaps this why it is so crucial to join a community whether it is in the form of a mastermind group, an industry group, or a networking group of like-minded professionals. Coupled with having a mentor or a coach, it is easier to take those forward steps.

  • Anonymous

    Barney,

    I’ve noticed this trend about how hard it is to choose to move forward with our businesses in a bolder, more determined way too. As I observe my clients, other busines owners/leaders, and myself, I wonder if this is really the biggest obstacle to building the thriving business we envision. Sure, funding and staffing are frequently obstacles but the fear of change is so incredibly powerful.

  • Anonymous

    Miriam,

    Your work is so important! The inclusion of a values statement grounds people in why the work is important which can make the operational plan so much easier to execute. You’re right! Tenuous they may be but first steps can be the tipping point.

  • http://www.wchingya.com wchingya

    It’s the little steps that count — that’s the phrase came into my mind as I read through your brilliant article, Elli. True, there’s always a little voice (but impactful enough) that telling us to stop realizing our dreams, for it’ll never happen — the so-called reality check but never really was, entirely, the real voice. ‘To commit and act’ — that’s the word that hits me. If we manage to take even baby steps forward, we’ll see a whole new level of faith and life lesson that will carry us further, closer to our dreams.

    @wchingya
    Social/Blogging Tracker

  • http://www.carltonprmarketing.com/ BobbieC

    I like the “stop talking” point especially — the just start “doing” is the hardest part of starting any project.

  • http://www.getresults.com GetResults

    Elli,

    Yes, indeed, the rabbit is out of the hat and Heisenberg was right. Good
    point! John

  • Anonymous

    @wchingya,

    Your comment is so beautifully written! The “whole new level of faith and life lessons” is definitely was carries us. Each step is an affirmation of our abilities. I was looking at my garden today with the spring flowers just emerging. They don’t just bloom. It is a slow process to the bountiful but it is always up and out.

  • Anonymous

    @bobbiec1

    Thanks for noticing that point. While I can be great talker also, the frustration of stagnating can be so painful. And all we do with our talking is reinforce our fears. Sure the fear is there but so is our ability. We are amazing and talented people!

  • http://marketingpartners.ca Jon Aston

    That is your most powerful piece yet, Elli. Very inspirational. Made me think of one of Eleanor Roosevelt’s more famous quotes: “The future belongs to those who believe in the beauty of their dreams.”

  • Anonymous

    Jon,

    Thank you so much! Eleanor Roosevelt is one of my heroines! The beauty of one’s dreams is what fuels the passion to go through the highs, lows, and the days of drudgery! Let’s go make our future!

  • Anonymous

    Elli,

    Great post. It is phenomenal the amount of barriers we through in own path to success. It is not as if it is not challenging enough out there without us making things worse. Love Irreversible step, it is amazing how suddenly these barriers disappear once we make that sometimes effortless 1st Irreversible step.

  • Anonymous

    Greg,

    Things are challenging enough without putting anything additional in our path but we do. You are so right about how barriers disappear! It can seem anticlimactic at times. Thank you so much for your comment!

  • http://www.projectmanager.com project management software

    Great article indeed. Easier said than done really. Much more risky. But still is worthy of trying. Big things are achieved by taking the small steps. :)

  • Sheddy

    A great work. You have given me answer the puzzle of this new year. The decision is mine to make and I will make it right.

  • http://www.tweakyourbiz.com Niall Devitt

    Hi Aileen & Welcome back to Bloggertone. Great post, I have a new client that I believe would benefit so hope you don’t mind if I share it. I agree that the ability to make decisions smart quickly is a major advantage in business. 

  • http://www.garrendennylane.ie/blog Lorna

    Good post Aileen and good tips re the financial information we should be checking each week in order to keep an eye on cashflow

  • Tlfromdet

    Good post Aileen. Have you ever heard of http://coachquestleader.com/? I have heard good things about this company. 

  • http://twitter.com/aileen456 aileen456

    http://boss.blogs.nytimes.com/2011/11/28/this-week-in-small-business-what-would-canada-do/
    woo hoo! got a mention here – see the Bill Clinton section

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    I am so proud and absolutely amazed that this is my niece who shares my varied coloured healthy “slushies” in the morning or at the pool at the end of her busy day. Keep up the good work you are great!

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  • http://www.damondnollan.com Damond Nollan

    The whole time reading your post, I kept thinking about my company’s decision makers. To myself I’d ask, how can I provide my leadership with those bite size pieces of information? Should this be in the dashboard? Email? Weekly meeting?

    I appreciate the opportunity to consider another POV.

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