Full income and expenditure. Either you know about these or you don’t. It’s a bit like a root canal for your business whereby the deeper you dig …the better the long-term outcome …but it hurts.
The ‘full monty’ as I shall now call it – is when you compute and list every little cost that your company has in one column …and every amount that you invoice in another column. All your insurances and taxes, all your petty cash and all your office parties and biscuit allocations. Fuel and servicing and all the extra cleaning that’s required to deal with Covid.
It’s a very sobering exercise.
It’s a little like the film ‘The Butterfly Effect’ which highlights how one minor change in somebodies’ life can have dramatic effects down the line.
I used to have a business partner who obsessed when the team bought Gold Blend coffee and velvet toilet paper for the office. He would have bought Asda own blend and re-cycled the newspaper for the toilets …I laughed at his tight money saving schemes.
After spending several hours going through the income and expenditure there will be a few changes at JKSL.
The detailed analysis has proven that the weakest link in the chain of spending is that somebody called Mike Clough, who seems to think his business credit card is his link to financial freedom…. business lunches, drinks with clients …. hotels…London trips.
Oh, hang on …