Many first time entrepreneurs have a misconception about what it means to “know your numbers” – or be financially literate. In many instances, it’s less about learning financial terminology and more about adopting an attitude shift about managing money. Here are some pointers to get you going in the right direction.

Financial literacy…

is not about having a degree in accounting or financial management, but about understanding how you budget, save and spend.

is not just about hiring someone to take care of your money, but about knowing where you stand with your money at any given point.

is not about thinking that if you just got more money all your problems would be solved, but about being clear how that additional money will be used to drive your business forward.

is not about being an expert in financial “lingo,” but about understanding your cash flow in simple terms.

is not about a magic formula, but about planning and knowing the details.

is not just about “knowing the numbers,” but about using the numbers to help drive decisions and actions you need to take.

is not a necessary evil, but is about re-framing your idea on what it means to have a business by managing your resources (and your life).

Financial literacy is a prerequisite for keeping your business sustainable.

By Dominik Loncar, CYBF Entrepreneur-in-Residence, dloncar@cybf.ca