Look after the pennies..

There is a saying that I have heard many, many times that goes “Look after the pennies and the pounds look after themselves”. This works for me on a couple of levels.

Paying attention to the finer points, the minutia

It is necessary review the finer detail of finances, plans and activities in order to identify and avoid problems, things that may trip you up or hamper you. World class performance is separated from ordinary performance by attention to detail, the smallest points. Think about the best actors, the best restaurants, the best service that you have received; what makes them stand out?

What will you pay attention to, to separate your business from your competition?
How will you differentiate your offering or your service?
Will you compete on cost or on a differentiated service/product offering?

Understanding your business

Look after the pennies
Understanding the financial detail of your business, the ‘pennies’ is key to managing and growing your business. You need to understand your fixed cost structures, your variable costs, your semi-fixed costs.

What you need to earn as revenue to break-even?
What you need to take to hit your profit margins?
What does that mean in terms of leads, customers, average sales?

 
 

If you do not know what these things are, then how are you going to set yourself the targets and goals necessary to you meet your vision. How are you going to measure your progress?