What is the Purpose of a Business Meeting?
The main purpose for you to have regular business meetings, either with partners, Boards of Directors, or an accountability partner, is to review reports and understand how the business is doing. If data is being collected but not reviewed, then the business owner does not have a complete understanding of the direction of the business.
Whether once a month or once a day, make a date to review the balance sheet, cash flow statement, and profit and loss statement. By doing this regularly, you will develop an understanding of how the business is growing over time. You will also be able to see if the business is stagnant or losing ground.
What are the typical questions a business owner should ask?
- What are the monthly sales?
- How many customers have we served? How many more customers do we need to see?
- What are the average balances in our A/R?
- What is the average turn on money?
- What is the quick ratio?
- What is the return on capital?
- What is the return on assets?
- What is the internal rate of return?
These are all questions that a business owner should be able to answer about their business. You should know what your regular volume should be. Understand where your profitability is and what your average revenue and margin are on a customer. These are all numbers that you will be expected to know as you become more sophisticated in the running of your business.
If you do not know these things, then you will not know if your business is growing or if you’re going backwards.
Do you know how to track this information? If you are not tracking and reviewing, what are the obstacles that are keeping you from doing so?