The point of having a business is to create something that lasts. And to do that, you need to listen to what your business needs. If you don’t pay attention to that, your business will keep you hopping, never able to truly pull away.
In fact, if that’s how you run your business, you aren’t building a business. You’re building a job and one that has horrible hours at that!
If you want to be a good business owner, you need to first understand what the results of your business to date are. That starts with an accurate and current set of financial statements.
Your financial statement reports on your business decisions and the operation of your business. If you make no decisions, and let things just ‘happen’ then that gets reported as well.
If you’re relying on instinct and gut reactions for your business, then you’re really relying just on luck and your ability to remember the numbers in your head. The fact is that as your business grows, you will no longer be able to keep all the numbers in your head. That’s why you see so many successful one-man shops fail when they try to grow. Ironically, it’s usually the employees that get blamed for the failure. The truth is that it’s inevitably the manger (you) that is to blame. That’s because your business decisions weren’t correct and/or the operations failed to operate properly.
When it comes to business, ignorance is not bliss. All the affirmations and positive thinking in the world won’t matter if you don’t follow up with business decisions and implemented strategies.
This is actually really good news if you’re serious about your business. There isn’t a secret formula that makes some succeed and others not. You can’t build a business, long term, based on positive vibrations or whatever the latest trend is. But what you can do is learn what it takes to be a good manager by regularly reading and understanding your financial statements. That’s how you can learn what business decisions need to change and how your operations department is doing.
At Cash Flow Accounting, we do two things: (1) We prepare timely and accurate financial statements from your information, probably for less money then you’re getting them done now. (2) We help you understand what the numbers mean.
Please contact Richard at 888.592.4769 to get more information.