We see too often how entrepreneurs and business owners are tripped up in their presentations when asked about the money side of their business. We just do not seem to have a good grip on our business and what makes it work financially.
I love watching the Shark Tank and Dragon’s Den as entrepreneurs pitch their ideas, asking for sums of money in exchange for equity and expertise. Their well-rehearsed pitched go well, with all the technical issues presented and well laid out. But when they offer their request, the valuations are way off and when questioned about GP, NP, ROI and COS, they fall flat. These are the numbers you should know and be able to talk about into others, especially when pitching for funding.
So this week, I want to challenge you to get to know your numbers and begin to understand what it takes to manage your business well from a financial aspect side of things. And if numbers are not your thing, then ensure that your business has a person or persons who do know these things and can advise you accordingly.
On Friday we will give you a list of questions that you should be asking your accountant on a regular basis to keep up to date with what is happening, what will happen and why.
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