Why would you want to know the financial landscape of your business? Here are three good reasons:
Measurable outcomes. What cannot be measured cannot be managed. In other words, if you don’t know what funds are coming in and what funds are going out, then how do you know how well your business is doing? How can you measure its success….or failure?
Peace of mind. Money carries so many emotions with it, both negative and positive. Having a clear, non-emotional head will help you to think through solutions. When the facts are in front of you on paper in your financial reports, it eliminates the guessing game.
Avoid regret. In a 2013 survey by Intuit Canada, it was found that small business owners’ biggest regret, after their first year of business, was not having upgraded their financial skills. According to Statistics Canada, 15 per cent of new businesses fail within the first year and 49 per cent close within their fifth. Don’t become a statistic.
Don’t be scared of your finances. Embrace the financial knowledge and be a success in your business!