Watching your profits over time will ensure your business can handle dips more easily.

Watching your profits over time will ensure your business can handle dips more easily.

If you do not keep track of exactly how much cash you’re making, you have no idea whether your choices and strategies are effective or not. And if you do not track these things you won’t have any idea how to fix issues that arise.

When picking strategies, you want to ensure you are as effective as possible. To do so, it is advisable for you to review your progress and adjust and/or revise your strategy, no less than on a monthly basis. If you are tracking often you will always ensure you keep on top of small troubles so they do not escalate to larger issues.

Unfortunately no business idea is truly unique anymore, which means that from time to time you will experience a reduction in profits. When this inevitably happens the best strategy is to revisit your marketing and advertising strategies, review your prices and evaluate your cost of goods margins.

If you do not keep track of how much cash you are making, you truly won’t have any idea of how profitable and sustainable your company is and will be in the future. If you do not know this you cannot hope to be in business for a long time. The simplest strategy for keeping yourself in business is to monitor your cashflow and profits over time. If you are not doing this you will not be prepared to weather hard drops in the market.