Check your pulse

On the first of each month, as I balance the books and finalize my numbers for the previous month, I take the opportunity to record some extra metrics about my agency’s performance for the month. Things like total revenue, total expenses, profit margin, progress toward financial goals (monthly & annual), number of leads, number of projects in the pipeline, and more…

All of this gets logged into an Airtable base, allowing me to compare them month over month and visualize the trajectories on charts and graphs (🚨 nerd alert!).

For me, having these numbers and being able to look at my agency from a 10,000-foot view (instead of from down in the trenches, where I usually am) has been invaluable. But, a little over a year ago, a small tweak has taken it to the next level.

The issue I had with the spreadsheet and charts is that while they do a fantastic job of showing me what happened, they do almost nothing to explain why.

This is exaggerated when you look back at data 6 months (or more) in the past. Sure, you can clearly see that July 2022 (for example) was a slow month — but the data lacks the context to remind me that I had to take a week off due to a death in the family.

So, on top of the numbers, I started preparing a small summary of the month that takes the numbers and puts them into context.

Here’s a slightly abbreviated version of one I posted in our Barfly Slack channel if you’re curious (with some information redacted for privacy).

This little exercise has become one of the best 30-minute investments I’ve made into my business. Here’s why:

• Clarity and Focus: By regularly reviewing these metrics, I gain a clear picture of my business’s health. It helps me stay focused on what’s working and what needs attention.
• Early Problem Detection: I can spot issues before they become major problems. Whether it’s a dip in leads or an unexpected spike in expenses, early detection is key.
• Goal Tracking: This process keeps me accountable to my financial goals. I can see progress (or lack thereof) and adjust my strategies accordingly.
• Decision-Making: With data at my fingertips, I make informed decisions rather than guessing. This reduces the stress and uncertainty of entrepreneurship.
• Mental Peace: Finally, this practice brings peace of mind. Knowing where I stand financially and having a plan for the future helps alleviate the constant worry that can come with running a business.

It’s never good to find your business in a bad spot — but it does happen. What’s worse is when you don’t have any kind of warning or a clear explanation as to why you’ve ended up there.

If nothing else, this little appointment with yourself is an excuse to check your pulse, catch your breath, and prepare yourself for your next set of challenges.

If you’re not already doing something similar, I would highly recommend creating a process for these meetings and scheduling them into your calendar as a non-negotiable appointment.