Baseline
“Research is the process of going up alleys to see if they are blind.” - Marston Bates
The baseline is our frame of reference, a benchmark for the results of all our activity.
If you are running a small business, it is important to “know the numbers.” We need to know what our costs of doing business are, how many sales are needed to cover our costs, how many salespeople are needed to support our distribution system, etc. We also need to know how our cash flow needs will be affected, given certain assumptions, when we compare last year’s results with our current situation.
Only with intelligent record-keeping is it possible to make a reasonable forecast of our future growth and thus to plan and make accommodations for that growth.
“Trends” can be discovered, allowing us to make decisions based on fact rather than guesswork.
How else can we adapt and adjust our thinking and activity unless we know in which direction our small business is running?
We are always looking for people who enjoy playing the game, welcome to our team of players.
Thoughts of Wealth Blog
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