Ceningan Divers reached its first anniversary in August. That milestone brings a very practical benefit that is rarely mentioned: from now on, each week can be compared with the same week a year earlier.
Before that point, every figure lacks context. Is a slow week in late September a problem, or normal? Without a reference, there is no way to know. The figures are now beginning to form a pattern, and a weekly review becomes a reliable management tool rather than a task that is easy to postpone.
Why does a small business need a weekly review rather than a yearly one?
Because a weekly review is the only one that still allows action. Most small businesses we have known examine their figures seriously once a year, when the accountant requests them. By then, the information is historical. Learning in March that October was a very poor month leaves nothing that can be done about October.
A monthly review is better. A weekly review is where action is still possible. A week is short enough to detect a problem early, and long enough for the figures to be more than random variation.
A tourism business on a small island illustrates this clearly. The season changes quickly. A slow series of bookings in the shoulder season becomes a cash problem six weeks later, in the low season. Detected in the first week, it can be addressed: launching a promotion, contacting partners, reducing a cost or postponing a purchase. Detected in the sixth week, it can only be observed.
Which five numbers should be checked every Monday?
A sophisticated system is unnecessary. A spreadsheet is sufficient: one tab, one row per week and five columns that matter. For a dive centre, we recommend the following:
- Confirmed bookings for the next four weeks. The forward view, and the only one of the five figures that describes the future.
- Revenue for the week just completed. What came in, without adjustment.
- Costs for the week. Fuel, staff, tank fills, repairs and everything else. A single compressor repair can move this figure significantly in one week. That is acceptable; the purpose is to see it.
- Cash in the bank. Cash, not profit. A business can appear profitable on paper and still be unable to meet payroll.
- New reviews and their average. In tourism, reviews on TripAdvisor and Facebook change before bookings do. A decline there is an early warning.
Five figures are sufficient. We have seen dashboards with thirty indicators that nobody reads beyond the first screen. A figure that will not change any decision this week does not belong on the Monday sheet.
We also recommend that the owner enter the figures personally. This matters more than it may seem: entering the data draws attention to details, such as a cost line rising gradually or a week in which reviews stopped arriving. An automatic report received by email is too easily glanced at and set aside without anything being noticed.
Why compare to the same week last year?
Because it removes the effect of the season. This step is often skipped, and it is the one that gives the figures their meaning.
Comparing one week with the previous week is of little use to a seasonal business. August naturally outperforms June, and November is naturally weaker than October. Such comparisons reveal nothing. Comparing a week with the same week last year shows whether the business is genuinely growing or declining, independently of the season.
In the first year, this comparison is impossible. That is why the first anniversary is significant beyond the celebration. From now on, the comparison is available in the spreadsheet: same week, last year, one column over.
One caution applies. The first year is an unusual basis for comparison. It includes the opening, support from friends and family, launch momentum and quiet weeks when few people knew the business existed. Year-over-year comparisons should therefore be interpreted with caution for some time; they will be more meaningful in year three than in year two.
Should a business react to a single bad week?
No. A weak week can result from weather, a problem with the boats from Bali or a public holiday in a country that sends many guests. Reacting to every dip exhausts both the owners and the staff through constant change.
What matters is a figure moving in the same direction for three or four consecutive weeks compared with last year. That is a trend, and it is the point at which the partners should meet to decide what to change.
This rule prevents unnecessary alarm. It also makes discussions between partners calmer, which is very valuable in a business with several owners. When everyone reviews the same five figures every week, discussions focus on what to do rather than on what is actually happening.
Which tools support a simple weekly dashboard?
Very few are needed. A shared Google Sheet works well and can be opened on any phone. Online accounting software such as QuickBooks Online, Xero or Wave provides revenue, costs and cash with minimal data entry. Most booking systems can export upcoming reservations. Reviews can be counted by hand in a minute.
BDC, the Business Development Bank of Canada, offers a short article on financial indicators worth monitoring for a second perspective on which figures to select. The five figures will differ by business. A restaurant might track covers and food cost; a contractor, quotes sent and quotes signed; a guesthouse, occupancy and direct bookings compared with booking-site reservations. The principle remains the same.
When writing a plan for a new business, or revising an existing one, this weekly review should be included from the first day. A business plan that is never compared with actual figures remains a document presented once to the bank.
Five figures, every Monday, compared with the same week last year: fifteen minutes of work. In our experience, every small business that ran into serious difficulty was operating without a review of this kind.