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I’m Bruce Frame and this is your One Minute on Business and this is number four in the
series about systems and procedures. I often get asked what I like to do first. Well, I’m
a business coach. So what I like to do first is all about money.
So I like to see the profit-loss produced 7 to 10 working days from the end of every
calendar month and not done by you the business owner and not ideally done by any member of
your family. Done by someone else whose job it is to actually get that done. It could
be an employee. It could be an outsource bookkeeper. It doesn’t matter but someone does it and
produces a document that you can look at and make sense of.
If that means you have to learn finance, then learn it because finance is the language of
business. Don’t want you to be a bookkeeper unless you had a bookkeeping business or an
accountant but you need to understand what gross profit is. What is net profit? What’s
the difference between margin and markup? How does that all work?
If you don’t speak the language of business, you can’t read the score board. If you can’t
read the score board, you can’t tell the winners from the losers because let’s face
it. What’s the grand final in any football game? What’s the grand final without a score
board? Just a bunch of blokes playing kick to kick, isn’t it?
You have to know how to read the score board which means you have to understand the finance
of business. If you don’t understand, find someone to teach you. If you’re struggling
with that, give me a call. You can find it on the internet. Have a great day.