I saw this commercial for Doritos the other day. They used no logo and never named themselves. Their brand is so strong, they don’t need it. What a great concept!
It’s pretty impressive that consumers would recognize their brand from simply the colors of the bag or the shape of the chip, right? They’ve put in the time with marketing to get to that point.
Why are we talking about Doritos? We are actually talking about confidence. Their ad showcased the fact that they trust that the world knows their name.
And for you, it should be confidence in your brand, but more importantly, confidence in your numbers!
If someone asks, “What’s your annual revenue?” Can you name that number accurately and confidently, immediately? Or do you have to take pause? This number should be on the tip of your tongue all the time. If you’re writing a bio or submitting an application to speak, don’t you want to be able to put 6-figure business or 7-figure business or beyond to tout your accomplishments?
Accounts Receivable – what’s the number right now? Especially anything over 90 days. If it’s not $0, WHY? If you don’t know what you’re owed, you can’t budget, you can’t forecast and you can’t pay people. Be on top of this at all times.
What is your debt? Credit cards, loans, lines of credit. Do you know the actual total? Only the interest on this debt is deductible, so every month you shell out money it affects your bottom line. Do you have a plan in place to get debt paid off? Start with the credit cards.
What is in your bank account right now? We know personally, we should have 6 months worth of expenses saved in our account in case of job loss or anything that affects us bringing in our normal income. In business, this is the same. Do you have that buffer? Most businesses have less than a months worth of expenses in their account.
What is your monthly expense total? Even if you don’t know the exact number, you should know roughly what you pay out and what is costing you the most. Usually, employees are the biggest cost to a company. Salary, benefits, etc. Keep an eye on what you are bringing in and paying out. What is changing, what is increasing, where can you cut, etc.
Now I know you might say, “But Amy, YOU take care of my numbers, I’ll just call you when I need to know these things.” Or perhaps you have a bookkeeper or accountant that handles this side for you.
It’s fine to have someone working the numbers, but you still need to know them. You should know your revenue and expenses at all times. Check in with me, or your financial professional, and get updated numbers at least monthly.
You are the CEO. It is your responsibility, above all, to take care of your business.