Hiring The Right People
Many franchises - such as food, hospitality and...
Franchisee Finance Health: Are You Checking Your Daily Numbers? While there are often some complex aspects of franchise financial management--such as during tax time--the financial data franchisees need to look at every day is relatively simple. At the end of each day, you should know how much money came in, how much money went out and how much closer your business is to hitting your goals.
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Incoming flow of cash
All business owners should know how much money they are making. Hopefully, this number will be good for you most days, but even "bad" numbers can show you something about your franchise. Is, for example, your business noticeably slower on specific days of the week? Is your customer count down? Are your customers buying less? Keep track of this data closely so you can see any patterns that may be emerging. When you look at your inflow of money daily, you will be able to catch patterns early on and adjust your business strategies faster.
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Outgoing flow of cash
The money leaving your business can be a little more difficult to pin down because it is going to more than once place. However, it's important you know where your money is going when it leaves your franchise.
Labor costs are one outgoing expense to keep track of, as it needs to be kept in balance. If, for example, your location is usually slow on Sundays, you should not have as much staff there on Sundays as you do on busier days. On the other hand, if you notice that your staff is unusually busy on a certain day of week, it may be time to add an employee to that day. Overall, you want to be bringing in more money than you are paying out to employees.
Inventory is another significant expense for businesses. While a perk of being the owner is that you can have someone else handling the physical inventory counting, you still need to know what you are spending on it. Naturally, you are probably not spending money on your inventory each day. However, it's good to get into the habit of checking that number daily, particularly if you are not the person who orders inventory, so you know what is going on in your business.
Last but certainly not least is "surprise" expenses. Perhaps your software needs updating or something broke; there are always situations you won't be able to predict. However, you can keep track of these costs to see if you can spot a pattern, such as needing to make more repairs in the fall than the summer. This way, you can budget for these costs better.
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Your business goals
All franchisees have financial goals. It could be the number that would allow you to expand or just to take some time off. Every day, you should take time to see how close you are to reaching your goal and think about what you can do to get there faster.
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Franchisee Finance Heath: Are You Checking Your Daily Numbers?
While there are often some complex aspects of franchise financial management--such as during tax time--the financial data franchisees need to look at every day is relatively simple. At the end of each day, you should know how much money came in, how much money went out and how much closer your business is to hitting your goals.
.
Incoming flow of cash
All business owners should know how much money they are making. Hopefully, this number will be good for you most days, but even "bad" numbers can show you something about your franchise. Is, for example, your business noticeably slower on specific days of the week? Is your customer count down? Are your customers buying less? Keep track of this data closely so you can see any patterns that may be emerging. When you look at your inflow of money daily, you will be able to catch patterns early on and adjust your business strategies faster.
.
Outgoing flow of cash
The money leaving your business can be a little more difficult to pin down because it is going to more than once place. However, it's important you know where your money is going when it leaves your franchise.
Labor costs are one outgoing expense to keep track of, as it needs to be kept in balance. If, for example, your location is usually slow on Sundays, you should not have as much staff there on Sundays as you do on busier days. On the other hand, if you notice that your staff is unusually busy on a certain day of week, it may be time to add an employee to that day. Overall, you want to be bringing in more money than you are paying out to employees.
Inventory is another significant expense for businesses. While a perk of being the owner is that you can have someone else handling the physical inventory counting, you still need to know what you are spending on it. Naturally, you are probably not spending money on your inventory each day. However, it's good to get into the habit of checking that number daily, particularly if you are not the person who orders inventory, so you know what is going on in your business.
Last but certainly not least is "surprise" expenses. Perhaps your software needs updating or something broke; there are always situations you won't be able to predict. However, you can keep track of these costs to see if you can spot a pattern, such as needing to make more repairs in the fall than the summer. This way, you can budget for these costs better.
.
Your business goals
All franchisees have financial goals. It could be the number that would allow you to expand or just to take some time off. Every day, you should take time to see how close you are to reaching your goal and think about what you can do to get there faster.
.
