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By Opeoluwa Runsewe
“Online and offline popularity are great for business, but the only way to measure genuine progress in your business is through your FINANCIAL STATEMENTS.”
Marketing is very important for business growth ,the products and services provided must be known to potential buyers in order to sell. Online marketing is very cost effective ,has a wide reach and provides easy monitoring and tracking while offline marketing enables face-to-face interaction ,covers a wider demographic and so on . Great!
However I recently noticed a large amount of Small,medium businesses use popularity gained from marketing as a yardstick to measure business progress. Marketing is a tool to ensure increase in sales not an activity to gain popularity, neither does popularity necessarily translate into sales .
The sole purpose of a business is to generate revenue and make profit; therefore the only way to measure the progress of a business is through financial data showing the amount of actual expenses ,sales, revenue generated and if revenue generated amounts to profit or loss hereby analyzing the performance of the business and making predictions about the direction of the company .
Do you have a financial structure? Do you have an overview of your total expenses and revenue ? Are your sales equivalent to your budget on marketing and operations? Do you have an idea of the cash flow of your business? I.e. The money being transferred in and out of your business ,Do you spend personal funds on business processes without tracking or monitoring these expenses or the return on such investments ?
If you do not know the current position of your business ,you cannot possibly know the destination of your business.
A business might be gaining popularity but your only true scorecard is your financial statement ,only your financial records can tell you the genuine position and measure the growth of your business ,help identify and tackle risks,ensure proper planning and help make the right investment decisions for the business. Without financial records you do not even have a business.
I’m sure you have great wishes and plans for your business ,first you’ll have to build a strong financial structure and ensure you’re totally aware of the financial position and destination of your business at all times.
Read more from this writer at: http://www.opeoluwarunsewe.com