What is the point of the scorecard?
The purpose of a scorecard is to show the goal or goals you most want to accomplish. A taproom financial income statement is a scorecard. However, it is rigid in what it presents – sales, cost of sales, operating expenses and net income.
A scorecard with Key Metrics can be as flexible as you like. It can present financial or non-financial numbers. It is designed to capture and quantify your most important numbers.
The scorecard should:
- Keep the goals front and center every day
- Be only one page (or one number) so that it’s easy to see how you’re doing at a glance
- Use numbers – key metrics – to communicate the goal
Measure the Most Important Thing(s)
Deep inside, we all know what the most important thing really is. Whether it is in our taproom business or in our life, we know what it is. The problem is that we forget.
The most important thing…is remembering the most important thing. The scorecard helps you identify what is most important and remember it every day.
It is a simple tactic, but very effective if you follow it. The scorecard provides focus on how you’re doing towards what’s most important.
How to Figure Out the Most Important Thing
If you are struggling to figure out what is most important, try a few focusing questions:
- What keeps you up at night?
- What is the biggest opportunity to take advantage of?
- What is the biggest problem you need to fix?
My story…cash keeps me up at night. More specifically, running out of cash keeps me up.
So, I designed a one-page scorecard to monitor our business cash position every day. It shows the bank balances, borrowing balances, upcoming spending and expected receipts. It shows borrowing ability and future cash needed to fund growth.
My cash scorecard helps me sleep better at night because I know I’m focusing on my most important thing.
Figure out what your One Thing is, measure it, and put it on a scorecard. Pleasant dreams!
Sign up for the new course, How to Boost Your Taproom Profits, for more details on how to build your taproom scorecard. Your income statement will thank you!