BUSINESS ALGEBRA – measuring so you can manage
Business Algebra™ (def.): The identification, definition, collection, reporting, analysis and management of the numbers that make up your business.
For a business owner, mastering Business Algebra™ is important because what you measure, you can manage. It’s part of the roadmap of where you want to go with your business.
For many people, when they think of “business” and “numbers”, their thoughts go to ‘financial statements’. While finances are an important part of Business Algebra™ they are not the totality.
“Key Performance Indicators” (KPIs) are also a significant part of Business Algebra™, and while financial indicators often make up part of a business’ KPIs, again, they are not the totality.
Business Algebra™ has both a forward-looking – forecasting – component and a backward-looking – understanding – component.
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