It is essential to keep a close eye on your finances. One way to do this is to investigate variances with your forecast each month. This means looking closely at why your results differ from what you had predicted. Are you spending more in some areas than you anticipated? Are customer numbers lower than expected?
By investigating variances, you can better understand your financial situation and make adjustments accordingly. This will help ensure that your business remains on track and remains profitable. The bottom line is that when growing your business, keep an eye on key performance indicators like profit margins. Properly monitoring these metrics will help you make decisions that profitably grow your business. And as always, a sound financial plan can go a long way in helping you reach your growth goals.
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