I remember it clear as day, finishing high school and knowing I wanted to be my own boss. Whilst chasing tertiary education, I wanted to start a side business and earn cash. My friend and his Dad were repairing commercial printers on the side and they asked me if I...
A huge shift in mindset is quantifying operations.
- What do I mean by this?
- How do you measure your businesses progress?
When business owners talk to other business owners, they talk about gross turnover.
More importantly, they talk about the years’ performance.
Entrepreneurs measure costs and performance in a year. This year versus that year. This year the cost of staff versus the past year cost of staff.
It’s a common standard that helps business owners talk on the same scale.
My business generates R16M gross turnover in the last financial year and my brother in laws business generates R150M gross turnover in the same period.
The purpose of the chapter is to show readers that they need to see their company’s income and expenses for the year.
Hence a yearly perspective is needed.
How much is rent for the year? How much income could I budget for in the year? Will the income exceed the costs of operation?