Management skills can be demonstrated in many ways: 5-star reviews online from customers, a team of stable, productive employees, and growing daily sales numbers. Though all of those are good (actually, great) things, if you are looking to take advantage of an opportunity to grow or expand your business, your potential partners, investors, or lenders look for the proof of your solid management skills in your up-to-date financial statements. If just thinking about producing them makes you cringe, you are not alone. Ask any lender, and they can share stories about receiving financial statements that are less than impressive: they are handwritten, barely legible, incomplete, incorrect, or just out-of-date.
Why is this important? Accurate, well-documented, and up-to-date financial statements that are easily available when you need them clearly express your management skills. It shows that you pay attention to the details that impact your bottom line. And if you want to take advantage of a new business opportunity, you need these at your fingertips now while the opportunity is hot.
Your financial statements should include:
Some of those details should include reports and details on:
The insights you gain by documenting and reviewing these elements regularly can help you identify and address potential problems earlier.
Creating and managing financial reports is not your favorite part of owning a business? There are some options for help:
It may never be your favorite aspect of the business, but attention to detail can pay off. Having quick access to detailed and accurate financial information will set your independent pharmacy business apart from others in your area and just might make the difference in whether you get the chance to seize an opportunity when it presents itself.