.jpeg)
にほんブログ村
Hello. I’m President Yasui, a solo business owner managing a company that primarily conducts inspections for high-pressure gas equipment.
The trial balance for the first quarter just came out, and, well, it’s not looking great.
That said, this is typically a slow season each year. Compared to three years ago, sales have increased, but the profit margin has worsened.
While there were some relatively large orders this quarter, we had to outsource more work, which increased sales but decreased gross profit.
Looking at the five-year comparison on the P/L statement, the past two years show that sales in this season have increased by about 1.3 times compared to three to five years ago, but profits are still not being made.
Sometimes inspections are completed before or after month-end, and materials may arrive before the month of inspection, so looking at single-month profits or losses may not be that meaningful.
Even though I know it’s just a temporary emotional dip, when the numbers come out in the red despite feeling like I'm working hard, I can’t help but feel a little discouraged...
When I talk to my tax accountant, they say things like:
"Looking at the numbers, just like every year, you’ll likely bounce back in summer."
And they gently pat me on the back, so to speak.
Still, not being able to predict whether we’re making a profit or not is mentally exhausting.
To put it in personal finance terms, it feels like being emotionally tossed around by the ups and downs of overtime pay that vary with how busy the company is.
What happens when things slow down??
That’s a pretty dangerous situation.
Now, this might sound like the company is about to go bankrupt—but let me assure you, we’re not in that kind of danger. Not yet.
It’s more about staying alert: Are we noticing signs of change? What is the core of our business? How are we building up our base revenue?
These are the things I want to keep top of mind.
Are we doing proper sales and PR to our existing customers?
Are we gaining new work, not just repeating last year’s jobs?
Where is our source of profit?
Taking a regular look at the company’s financial health forces me to confront the reality of the numbers, and I think that’s a good thing.
Some people say they have a mental grasp of their sales and gross profits, but I think it's valuable to look at the bigger picture using both the B/S and P/L statements.
Even after 10 years, I’m still just charging ahead with everything I’ve got.
Running a business really is incredibly deep...
Truly, I’ve made it this far thanks to all of you.
I sincerely appreciate your continued support! :)
Thank you so much for reading this far!
See you next time!
And lastly, please click the link below ↓♪
To the Business Blog Ranking on Nihon Blog Village
To the Business Blog Ranking on Nihon Blog Village
