Keeping Track

Earlier this week, I saw a headline for an article concerning how much it costs to charge your smartphone for a year. Well, the article did not bury the lead and quickly let it be known that the phone probably uses less energy than anything else in your home and likely costs less than a dollar PER YEAR to charge your phone.

Well, hey, at least that is good news.

From there, though, my mind spun off into wondering how many things we pay for that we don’t really know what they cost. I mean, in this case, we just pay our electricity bill every month, maybe with memories of our parents telling us to turn off the lights or close the refrigerator door if it’s higher that month, but it is just this mystical total number, and we don’t know exactly what makes it up.

Now in this case, there probably isn’t a whole lot that we can do to get into the intricacies of that total number. For business owners, however, it is important to break things down whenever possible.

There have been many, many times when we have seen business owners (frequently early in their journey), whose accounting consists of making sure there is money in the bank. As long as there is, they feel they are moving in a positive direction. And sure, to some degree this is true, because everything is taken care of, they are not left with stress weighing on them about how to pay their bills.

But as opposed to what is actually contained within your electricity bill, you CAN figure out just where your money is going in your business. And when you actually have those numbers, you may be surprised at some and start to actually think about what you are spending. Or, of course, you may look through those numbers, find that you aren’t necessarily spending too much, but realize you aren’t bringing in enough income to be where you want to be.

No matter just how things look, though, actually having those numbers gives you the power to make decisions to reach that desired point. No matter how you choose to get there, you can only reach that destination by having that definite information. So keep an eye out in the near future for some more writing from us in this spot about ways that can be accomplished.

Warmly,

Josh Bousquet
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