How to Track your Financials
Entrepreneurs like to trust our gut.
It's what makes us dream big, create amazing products and services, and change the world. But that's only half of business. The other half is practical. It takes a long look at what's actually working and what improvements need to be made. Then it adjusts accordingly.
Too many entrepreneurs want to live in the fun, trust your gut side. And that's why too many entrepreneurs fail. It takes both sides to make a successful business. Do you think Apple is out there winging it? Hell no! They've got a team of data science experts breaking down every number imaginable and a team of MBAs crafting a strategy around those numbers. That's what successful businesses do!
For us smaller companies, a monthly checkin is a good idea. There are a few main numbers that you can check in about ten minutes to give you an idea of how things are actually working. Then compare those with last months numbers to get an overall picture and create next months strategies.
Here are the numbers you need to know and how to find them:
Total Monthly Sales
Total Units Sold
# of New Accounts
Sales Breakdown by Item
Where to find them: your accounting software or ecommerce site
Why you need to know them: It's your bread and butter! You need to know if your products and marketing are selling and if you need to change things up.
2. Social Media
# Social Media Followers (Per Account)
Top Posts Day/Time/Content
Where to find them: your social media profile business page or an app like Later or Hootsuite
Why you need to know them: You want to know the who/what/when/where/how/why of your fanbase so you can serve them better.
Total Website New Users
Average Session Duration
Top Referral Sites
Where to find them: your website analytics + google analytics
Why you need to know them: Your website is where people go to make their final purchasing decision. You have to know what's not working and how you can make it better.
Total Newsletter Subscribers
# New Subscribers
Average Open Rate
Top Newsletter Day/Time/Content
Where to find them: Your newsletter service
Why you need to know them: These are your most active fans. You have to know what they like and dislike so you can convert them into customers.