Powermeter for IT Service Firms
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The Powermeter for IT Service Firms Explained
How You Use Your Financial Data Will Directly Impact Your Freedom
Building an IT services firm is hard. You have to have a blend of technical know how, entrepreneurial savvy, and financial discipline. Everything is so metrics driven but so many business owners let their financial data just hang out useless. Don’t run away from the thing that you’re not an expert at? You’re going to create unnecessary vulnerability. If you truly want to be powerful as an owner and build equity value, it is essential that you take a systems approach to your financial data. Your financials (both historical and projected) are just a representation of the decisions that you make or intend to make. If they are sloppy, well….you the get the point. Companies that build enduring equity value and achieve the kind of breakout freedom that the owner desires have a commitment to approaching their back office finances as a well running machine.
How well is your machine running? We created the Powermeter for IT Service Firms to be a guide for owners to assess how well they are processing, accessing and using financial data to be the most confident business leaders they can be. There are four states on the Powermeter as follows:
When you are Passive, you don’t have data to make decisions so you are driven primarily by your gut.
When you are Perceptive, you have sense of what you need but don’t have the systems for reliable delivery.
When you are Proficient, you have core data dashboards and your team is starting to use the data for strategic discussions.
When you are Powerful, you are working on your business, feeling confident and informed in the data at a customer level and management is sufficiently empowered.
The cost of being low on the Powermeter scale reveals itself in growth, culture, cash flow, and confidence.
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