People start a business for many reasons, some say they start a business because they want to be their own boss, some because it is their life’s passion and others for complete control over when they want to work. These are all good reasons, but at the end of the day we are in business for one reason, to make a profit, and eventually provide financial freedom that affords us to take advantage of all those other reasons to be a business owner. Yet many business owners are in the dark about their finances. They avoid thinking about the numbers, put it off till tax time, or simply pass off income statements, balance sheets, and financial decisions to their accountant.
Just as a knife is to a chef or socket wrench is to a mechanic, the finances of a business are an important tool for your business. They are not just numbers to be used to file tax returns or get loans from the bank. They actually tell a fascinating story about your business that gives you the insight and power to make better decisions.
Many of my clients tell me they do not even understand an income statement or balance sheet. I tell them that the numbers and information gathered to put those numbers together can tell you so much more. Can you answer these questions about your business, what is my average sale, what demographic do I sell to, what has been my growth over the last three years, months or even weeks? If you do not know the answer to these questions then you are not getting everything you can from your numbers. We teach our clients how to look at and use these numbers to not only better manage their business but also as a key tool to help them grow and become the company they always dreamed of having.