Almost everyone who’s deeply interested in the entrepreneurial spirit has watched Shark Tank at one time or another. Yet, another popular TV show that focuses on the lives – and livelihood – of small business owners is The Profit, a reality program from CNBC that focuses on saving small businesses.
On the show, serial entrepreneur and investor Marcus Lemonis spends a great deal of time advising potential business partners on how to make their companies successful. But not everyone takes his guidance – and it’s often to their disadvantage.
With this in mind, we found one particularly meaningful quote from Mr. Lemonis that perfectly summarizes the foundation of The Five Pillars of Business Freedom.
If you don’t know your numbers, you don’t know your business.
As Mr. Lemonis points out, and our first pillar of Financials expands upon, not knowing what’s going on in your small business financially means you probably don’t have a finger on the pulse of your organization. And with so many modern tools available, a world of useful options await you.
Yet, even if you select the right financial tools for your small business, what are the numbers that most deserve your attention? Keep reading to find out.
While the numbers you need to know as a business owner may appear daunting, there are a few that stand out, and should be reviewed frequently from your financial dashboard.
In an article from Inc. we see that startups – or small businesses in general – are often in serious trouble when it comes to their financials. As the author, the entrepreneurial owner of BodeTree financial software, emphasizes:
Based on our experience and the experience of our partners, my team and I estimate that only 10 percent of all small businesses have up-to-date and accurate accounting information. This means that 90 percent of small businesses are unable to produce dependable financial statements when prompted.
Few will dispute the truth behind all of the excuses that used to prevent small businesses from organizing their finances. The only options that were available to them were expensive, time consuming, and incredibly complex.
Today, however, there are no more excuses. Whether you’re a small business or an organization that serves them, the 90 percent challenge is no longer a roadblock to success, but rather a reason to adopt a new approach.
Are you struggling to get your financials in order? Then it’s important to begin looking at your financial standing sooner rather than later. It may take some time to learn the ins and outs of your small business’ numbers, but it will ultimately give you even greater insight on the viability of your organization, both in the short- and long-term.
Want more tips from entrepreneurs who have also been down the path of small business ownership? Listen to our radio show The Second Stage for more advice on getting your company financially stable and becoming a better business owner and leader.
Are you ready for the next phase in your evolution as a company, leader and entrepreneur? Receive insights, resources and actionable advice delivered directly to your inbox to help take you and your small business to the next level.
We respect your privacy. Your information stays with us.