For any type of business, here are three things you can do to improve your business today:
1 – Implement a Daily Cash Report
It’s good to look at longer-term financials after the end of each month, quarter, and year. It also helps to have a daily pulse on your business.
The best tool I know for this is a daily cash report.
I have our financial manager send me an email every weekday morning in this format:
Subject line: Daily Cash – XX/XX/XXX (the date)
Daily cash report for XX/XX/XXXX (same date, usually yesterday):
Cash received: $X,XXX.XX (<< total cash received for the date)
Total cash balance: $XXX,XXX.XX (<< the balance across all banking accounts)
If you are the only person working in your company, put this cash data together yourself in a spreadsheet. It shouldn’t take more than a few minutes to create and is well worth the time.
2 – Forecast Performance for the Next Three Months
For the next three months, forecast your revenue, cost of goods sold, and operating expenses. These numbers allow you to also forecast your gross profit (revenue less cost of goods sold) and net profit (gross profit less operating expenses).
Then, schedule a date after each month when your financials are ready to review how your business performed versus how you thought it would perform.
This monthly discipline of forecasting and reviewing your forecast can be eye opening. We have discovered lots of overly optimistic assumptions and wasted expenses sucking money out of our business with this process.
3 – Split Test the Headline on Your Highest Traffic Page
Look at your analytics data such as in Google Analytics. Determine the highest traffic page on your website (the one with the most visitors). This is likely your homepage, but may not be.
Next, split test the headline on the page using a tool such as Google Optimize (it’s free).
The headline often has the highest impact on a page’s performance. If you collect leads, split test the headline for the maximum lead conversion rate. If you don’t collect leads, split test it for purchase conversion rate.
You might need to let the test run for weeks to get enough data. That’s OK. Having at least one split test running is better than none. It’s a free and easy way to get more value out of what you already have.
Now, start back at the top of this list and implement these today in your business.