Why are Quantified Lucrative Business?

Learn the art of being an entrepreneur requires many skills, and one of those skills that are being taken in the Innovative Business is precisely the analytical quantification of the figures show the activities of the business.

Even knowing that this simple method can make lucrative business, unfortunately, many owners of small and medium enterprises and even some large business owners not carried out,

Most Business entrepreneurs overlook this simple but significant act for all entrepreneurs should be an obligation, to quantify the business.

Do not measure the business is a big mistake, he did not do it means that analyzes the results of a strategy that has been implemented, we cannot know whether the plan has been carried out correctly, or if any action paid off or not.

More than just a method, the quantification of business shall be conducted as a complete process, if you want to profit businesses should carefully collect and analyze key information, this in order to know two essential things:

1. If anything we have implemented in the way work was planned in order to keep repeating and improving the implementation.

2. If the strategy or the operation to be launched for errors or failures on which decisions must be made to repair them.

The method of quantification is not science and less for Innovative Business with simple formats in which information is collected vital or important, may have at its disposal the necessary reports to make decisions that make the business more profitable.

As a first approach to the quantification, we must determine the essential parts to be measured;

Mainly measure areas such as sales, unit costs, inventories, production (in case of industry), the costs and expenses, including these are all key points on which we have all the information necessary for analysis.

A simple method for collecting information through a format, can give you all the information necessary to discover the two key points I mentioned above; the steps should be similar to the following:

1. Identify key parts of the business of what information will be gathered.

2. Designing a format for every essential part to be analyzed, which can be translated all the necessary information on such important items as Sales, Accounts Receivable, Product Unit Costs, Inventory Control, etc.

3. Set to the person who is responsible for collecting information to fill out the forms provided to each area of business (small businesses the same operator can be the one to undertake this task.)

4. Analyze information to shed formats, preferably through an analytical and graphs that show significant deviations.

5. Finally take the necessary decisions to correct deviations that may be causing problems for the business.


In the graph above shows an example of measuring the business through information collected daily, shows the behavior of selling a business, where we clearly see the variation of certain days of the week, of course this information is so valuable that it could be exploited to investigate, on certain days that sold more than others and what techniques could be used to increase sales.

Making the Information Review Business habit is the best way to make sure that all the strategies and actions taken are achieving the planned results, and if not, this review will set the tone for us back on track or make appropriate changes to remedy situations that result in profitable business.

And you, you have the habit of measuring and quantifying your Business? Do you carry daily reports that will indicate the critical points of your company?

If you do you could be making the biggest mistake of Business, who could take you into bankruptcy sooner rather than later. Apply this valuable advice that will give you great results, if we really want to be a prosperous and sustainable business.