EUREKA! Now I Understand My Business

I had the opportunity to watch the light go on for a client of mine yesterday and it reminded me once again of the incredible joy experienced from such a revelation, on both our parts. For my client’s part, he suddenly “got it” and understood his business and became in control at that moment. For my part, I saw the light bulb go on. What happened?

We had been discussing financial controls for a few sessions, creating financial reports and learning how to read them, determining break-even, evaluating overhead, projecting revenues, and finally reconfiguring the profit equation, his parameters for bidding jobs. After discussing these important tools for weeks (it was admittedly difficult holding his attention as it appeared most boring to him) all of a sudden it all came together for him and made sense. He figured it all out. He understood why he had to bid at a certain level and what would happen if he didn’t. He discovered that one cannot make up losses by bidding below break-even with volume. But most importantly, he had an overwhelming sensation of control over his business, his life, and his destiny. Now, he understands how it all fits together into a profitable business.

It is called understanding the science of doing business. The language of business is numbers and when one has a grasp of these key indicators, one has control of his business. All of a sudden, my client understood that he could make decisions based on valid and current information, not just gut instinct. He could run his business according to a carefully worked out plan with a cash flow pro forma and numerous reports guiding him along the way. Now he is confident he will reach his goals, earn a substantial profit and remain in control of his business.

That’s what it’s all about, discovering the science of running a business profitably and growing it safely. What a great moment it is when the light turns on, it all comes together and you understand. With this understanding, you regain control of your business and your destiny. Eureka! It’s the perfect word to describe this wonderful event when the light bulb finally burns bright!