You're Driving But Who Is Navigating?
In this issue…
Can you trust your map?
455 words, total reading time about 2-1/2 minutes
As the owner of your business, it’s your responsibility to make sure the company achieves its goals: revenues, profitability, cash accumulation. Your company is the bus for everybody who works there, and you’re the driver. But…
Who is navigating?
You may know where you want the bus to go, but you need someone to show you the map of how far your company has come until now. The map needs to be accurate and up-to-date, with your current position clearly identified. Google can’t help you with this. Somebody who knows what’s going on in the business, every day, probably can.
Is that you, the owner? If you’re driving and navigating, our guess is that your business can never get very far, very fast. Our experience is that “the owner knows all” integration companies never get much past $1.5M to $2M in annual revenues. Indeed, the median annual revenues of CEDIA-type integration companies is less than $1.1M (CE Pro 2018 State of the Industry Study)
If your goal is to have a $2M+ company, you need a Navigator. Should it be your Ops Manager? Your Purchasing Manager? Your AR Manager?
None of the above. It should be the person who deals with all the projects, and all the customers, and all the employees, and all the vendors, virtually every day, week in and week out…
Your Admin Manager.
OK, we can hear some of you choking on this one. We’re gonna guess that you’re one of the many small companies out there who don’t have an Admin Manager. You think we’re suggesting you have your bookkeeper as your Navigator.
We’re not. Because bookkeepers come in varying degrees of skill. And in most companies, it is not much of a trained skill, but a learned skill. Many are not that far along in their learning. And many more have learned a way of bookkeeping – from your company, or a former employer – that is not a very good way for producing an accurate map.
Trusting the Map
A merely adequate bookkeeper is not enough. Our experience is that good, solid, timely #’s require an admin skilled in the disciplines of their accounting software, and aware of how process can impact good data capture. A good admin sees & corrects mistakes before committing them to the books. A good admin produces monthly reports that can be trusted to accurately represent the company’s financial position, and can be used by the driver to see what needs to happen in the future.
It’s a revelation to business owners when they finally have a map they can trust. We’ll talk about that next time.
Meanwhile, you owe it to your future to make certain your company has a good Navigator.