What would your business look like if every person in your company who interacted with your customers and prospects not only had an eye for spotting sales opportunities, but the basic skills to nurture them?
If you want to be profitable and have strong cash flow – knowing your numbers and understanding your financials is not optional.
While some of us are all over it, the vast majority of business owners prefer to look at other areas of the business that they are either better at, or have more fun doing – I guess it’s human nature.
Which is why business owners who successfully grow their companies don’t just do what they enjoy or what they know. They have the discipline to look at and understand the numbers despite how much they do or don’t enjoy doing it.
So this issue is dedicated to the numbers.
When we start working with our clients, the financials are our first port of call – we want to understand where the numbers are, then where you want them to be so we can work out our game plan to make it happen.
There is content below to suit all levels of financial acumen. Enjoy!
Understanding Your Financials
Making good financial decisions starts with education. Lack of financial knowledge is like a pilot flying a plane who can’t read the controls and dials. It is business suicide.
Here is a great starting point if the word ‘financials’ sends chills down your spine.
Why Cash is NOT King
Interesting contrarian article. While the headline is a little misleading, the author Jay Goltz, raises some great points to consider – particularly when not to get too overconfident about having a healthy bank balance
Cash Flow Forecasting
While the article above says ‘Cash is not King’ we all know having it in the bank makes it easier to sleep at night.
And so we call our Cash Flow Forecast Tool a ‘sleep at night tool’. When you know what your cash position will be in the future, it gives you some piece of mind.
To understand more on ‘how’ to create a cash flow forecast, check out the link below. And if you’d like a copy of the template shown in this video, just send me an email [email protected]
The three best books I’ve read on financials
Profits Aren’t Everything, They’re the Only Thing
Financial Intelligence for Entrepreneurs
Karen Berman & Joe Knight
Simple Numbers, Straight Talk, Big Profits