Financials are just one tool for decision making
In America during the time of prohibition, illegal bootlegging of liquor created amazing financial returns. If you focused just on the financials alone, you'd eventually have been ruined. Why? Well, once liquor was legal again, competitors would have squeezed the little guys out. They would have been able to make it cheaper and you'd probably have code problems to make your liquor in some out of the way hideout.
The trick to running a business is to look at the financials but also take in what laws may change and how it affects your business. In addition, you must be careful to be innovative in your business or run the risk of losing market share to another upstart competitor who does the basics better than you.
Look to staying informed on a number of fronts rather than one and increase your chances of remaining viable in your industry.
I am a CPA in San Antonio and provide bookkeeping, payroll, taxes and more. We offer a free initial visit and look forward to serving your business needs.
Richard J. Garcia | 11/30/2011