inancial means monetary, fiscal or related to money (dollars and sense). It’s all about the numbers. You don’t need to be an accountant to read financial statements. But as an entrepreneur, you do need to know what the numbers are and what they mean. Financial statements can be powerful tools to guide your course, track performance, incentivize your teams and suppliers and communicate to all of your stakeholders. Here are some tips you should consider:
Take the time to build a basic financial scorecard and know how each of the numbers is affected by your decision making processes.
You will be a better entrepreneur, a better owner and a far better boss.
Engage your team and suppliers in developing the numbers.
This is the easiest way to align everyone and gain commitment to your financial goals. Transferring ownership of the numbers is much easier if they participate in the development.
Communicate the results on a regular basis.
Be disciplined and discuss the outcome at least every month. Make adjustments as necessary. Don’t keep things to yourself. You will need your team’s support to change course or get back on track.
Knowing your numbers is a fundamental part of becoming a successful entrepreneur.