My Library and Courses
Last Update: Tuesday December 10, 2019

Key Idea: Study Your Trends; Track your Numbers

Chris Schatte and his wife Joni own Texoma Lawn and Garden and use financial management software to watch their trends.

Key Question:

A: 

By looking at trends you can always know where you stand and how to anticipate problems.
Jim says that no number is relevant or useful unless you are comparing it to other numbers.  

Q: Is he joking?

A: No. It makes perfect sense. You might think it is wonderful that you had $30,000 in sales this month. But if last year in the same month you had $40,000 then $30,000 is not good unless, for example, you cut your overhead in half since last year.

As we prepare this episode, there are a couple of trends that are hurting small business owners. One is the cost of health care and the other is the cost of fuel. If you are not studying the trends in your business, you can be thrown off course before you know what hit you. To create trends, simply generate monthly financial statements and compare key numbers against last year or last month.

Think about it

What would your sales trend line look like if you put it on paper? How about your profit?
 

Clip from: Learn to Use Your Financials; Track your Numbers

USA and around the world:  Let us all get our houses in order!  Keeping track of business... it is the job of everyone in a business  The best way  to do it is to read, grasp and act on those monthly financial statements. If you share that information and give everyone bottom line accountability through the key ratios, your business will rally. You'll see an impact immediately!

In this episode you meet three small business owners. Two have gotten control of their financials and one is working to do better.

Unfortunately, most of us do not work closely with our financial data.  We all must.  With all the features built into today's accounting software programs (be sure you have your latest upgrades), any owner should have the numbers they need to run their business with the push of a button.

Texoma Home & Garden

Chris Schatte, Owner

2300 Wilbarger St.
Vernon, TX 76384
940-552-2900

Visit our web site: http://www.texomagardens.com/

Office: 940-552-2900

Business Classification:
Lawn & Garden

Year Founded:

Study Your Trends; Track your Numbers

JIM: Everything is trend. So boil it down day to day. So yesterday if you sold $100, well its good if the day before you sold $50, right? Or, it's good if the same day the prior year you sold $50. So trend is everything in small business no matter whether you're looking at trying to sell your business, and then it's particularly true, or whether or not you're trying to make assumptions for budgeting purposes, for forecasting purpose, for whatever. Frequency establishes trend and trend determines so much. If you just took one balance sheet someone like me can look at it and tell how liquid the company is. But from your standpoint, if you compare a balance sheet today to one yesterday you can see how your company is changing -- trend.

HATTIE: How did you convince a banker to loan you the money to build this fabulous greenhouse?

CHRIS: We had to build a business plan through all of our previous experience. It was hard to get everything all (together).

HATTIE: Did you have to go back to old statements? Did you have to get an accountant to help you?

CHRIS: We didn't have an accountant at that time so we did it all on our own. Guess it worked out OK.

HATTIE: Because you got the loan.

CHRIS: That's right.

HATTIE: Now that you're using an integrated accounting system if you need another loan, is it going to be easier?

CHRIS: It was easier because we have already gotten a new loan under this new system.
 

Not a member yet? Learn!  Be empowered! Join us!