For me, one of the most important aspects of managing my business is regularly reviewing reports. I make it a point to check in on the company’s performance on a daily, weekly, monthly, and annual basis. This consistency helps me keep track of where we stand financially and allows me to make timely adjustments if needed.
I focus on two primary drivers of my profit and loss statement: revenue and advertising expenses. These are the areas where fluctuations can have the biggest impact on the business. While I know my fixed costs are steady, I keep a close eye on revenue trends and the cost-effectiveness of our advertising efforts.
It’s this regular monitoring that enables me to trigger various elements within the business, especially in the digital space, to ensure we stay viable.
Identifying What Matters:While some entrepreneurs might feel overwhelmed by the sheer amount of data available, I’ve found that focusing on specific metrics makes the task more manageable. For me, it's all about honing in on the numbers that truly matter. Revenue is the obvious one, but customer acquisition costs, website traffic, and the return on our advertising spend are also key metrics that guide our strategy.
At Parking Made Easy, we’re constantly running digital campaigns and using data to tweak our approach. By tracking performance indicators such as website traffic and media engagement, I can see which marketing efforts are delivering the best results.
Turning Data into Action:Tracking numbers is only half the battle—what’s really important is how you use that data. I don’t just look at the figures; I analyze them to identify patterns and trends. This helps me spot any potential issues early on, as well as uncover opportunities for growth.
For example, if I notice that our ad spend is increasing without a corresponding boost in traffic or revenue, it’s a red flag. I’ll dive into the data to understand why and make adjustments accordingly. Whether it's tweaking ad creatives or shifting our focus to a different marketing channel, this approach helps me make informed decisions that keep the business moving forward.
At the end of the day, understanding your numbers is essential for success in business. It’s not just about tracking them but about using them to inform every decision you make. In my experience, this level of insight and attention to detail has been crucial in scaling Parking Made Easy and achieving long-term growth.
