The first quarter is behind us. Have you sat down to analyze how your business did? If not, now is the time to do it. You must review everything in order to know what’s working for you and what’s not. This is important to know. So, this week’s FGmarket has a few tips on what to analyze and what to do with the results. You may find out everything is working out great or you need to change a few strategies within your business.
First off, how did it do? Have you closed your books and are you ready to start analyzing the numbers? Start with your sales. Break it down into ways that are useful for you and your decisions like geography, product line, etc. You need to review your sales and see what worked and what didn’t work. Maybe you had a certain product line that you did well with, you may want to consider expanding that line. However, you also may have products that didn’t do so well, so you may want to evaluate and see if they have the right fit in your store.
Next up, take a look at your gross margin. Did you make any revenue after all your costs? If yes, then you are doing something right. However, if you took a dip in numbers, start taking a look at your business strategy and see where you can cut back and what’s working and what’s not.
Also, don’t forget to take a look at product line profitability, job level profitability, inventory and cash flow. For your product & job level profitability, you should understand and know the profits for each service or product you offer. Do you know how often you are stocked with a certain product? It’s great to know what your best sellers are and what’s not. This way, you find out what products you need to buy more of and what you don’t have to focus much on. You definitely don’t want to have a years worth of supply of an item that isn’t one of your top sellers. Another important part to look at is your cash flow.
So, did you meet the goals that you set for yourself? If you did, that’s wonderful. You have a great strategy in place, however, don’t forget to always re-evaluate to make it better. However, if you were unable to reach your goals, there could be a lot of factors on why you did not. Start analyzing and come up with a list of reasons why, take a step back and start making changes in your strategy.
Gather, analyze and changes are all part of the process. You want to gather the information, analyze it and then decide if you need to make changes to your business strategy. This is definitely an important aspect of your business, so make sure to spend time analyzing, researching and deciding what’s best for your business.
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