As a business owner, it is important to conduct regular reviews to track your progress, identify areas of improvement, and make necessary adjustments. In a recent episode of The Kid Contractor Podcast, Caleb and Brittany Auman, owners of Auman Landscape, discussed their first-quarter review of the year. The couple went through their financial records, analyzing their sales and expenses, to see how they were performing.
One thing that stood out during their review was the impact of their work on the building on Auman Landscape's books from the previous year. Although the work was not a significant expense, it was considered a sale, which made it challenging to compare their first-quarter results accurately. Caleb and Brittany acknowledged the need to look closely at the numbers and analyze them collectively to get a better understanding of their current financial status.
The couple found that their sales were down by 16% compared to the first quarter of 2022, and down by 20% compared to 2021. Caleb noted that this could be due to a delay in receiving payment for a project or not being ready to draw a payment. Brittany suggested running the numbers again in a week to see if there were any changes.
Another critical point they noticed was the decrease in their field labor costs, which were down by 50%. Although it was surprising, the couple agreed that they needed to go through the numbers more closely to figure out if there were any discrepancies. Caleb suggested that they might need to go through their review process again to ensure they get an accurate picture of their financial status.
Conducting a review is crucial for every business owner. It is essential to keep track of your progress, identify areas that need improvement, and make necessary adjustments to reach your goals. Caleb and Brittany's review process serves as an example of how reviewing your business's financial records can help you identify areas for improvement and make informed decisions. It also highlights the importance of paying attention to details and looking at the numbers collectively to make accurate assessments. By conducting regular reviews and analyzing your business's financial records, you can stay on track, make necessary adjustments, and achieve your business goals.