Although many people do not enjoy keeping records, those who apply this principle in their daily lives and in their businesses quickly discover that keeping records can be a very rewarding and helpful activity. This is true because record keeping is not an end in itself; it is a means to an end. And that “end” is improving the operation and profitability of a business.

Good records can help you understand what is happening in your business—not just today or this week, but over a few weeks or even years. Records provide answers to questions that every business operator—including you—needs to know:

• Which of my products are most popular? Which ones are not selling very well?

• What expenses are associated with the goods I sell?

• What times of the day are busiest?

• Have I earned more money this month than I did last month? Is this revenue increase a one-time phenomenon or an indication of a seasonal trend?

If you want your business to grow and flourish, you must keep records, even if those records are very simple at first. A microenterprise’s first records might track the following items:

• How much was paid for each product purchased from the supplier

• How much of each item was sold each day

• What revenue was generated from those sales

• Every inflow and outflow of money

• The cost of adding value to (or enhancing) the raw materials

To start out small, record these items daily for two weeks. At the end of each day, analyze your records. Find out what items sold the most that day, where the profit came from, and what items are sold together. If you keep careful records and analyze them daily, by the end of two weeks you will have enough detailed information to make great business decisions that will increase profits and help you run a better business. And running a better business will soon result in more money you can take out in the form of a salary.