Business financials are your most important decision-making tool. Use them wisely.
According to a study from the Business Development Bank of Canada, “lack of financial management expertise is probably the single most common factor that causes otherwise successful firms to run into difficulties.”
Business may be booming, but you shouldn’t make major decisions based on gut instincts. Getting a solid grasp of your business financials gives you the ability to make decisions based on real data and avoid pitfalls.
Here are 6 small business situations where knowing your numbers can make big decisions a lot easier:
- I’ve actually never logged into QuickBooks. How do I know if my accountant is managing everything correctly?
- I want to hire someone. Are my projections for the next 6 or 12 months accurate so I know whether or not I can afford additional employees?
- Something has to give. How do I know which area of my business is least profitable so I can focus on other areas?
- I have a GREAT idea for expansion. Is now a good time for me to launch a new product or service line?
- A BIG opportunity and shiny new contract just fell in my lap. Can my business handle an order this large?
- I need to money to grow of my business. What financial reports will I need to apply for a loan or pitch to investors, and how do I know how much to ask for?
All of these decision points become a lot easier to navigate if you have a solid grasp of your business financials.
Setting up your chart of accounts, having a solid pricing strategy, and being able to create accurate projections are invaluable skills for any entrepreneur, and Pathway WBC can help.
Enroll in our 7-week Embark Cohort to gain these skills in a supportive environment and join a community of peers and small business experts. We will help you take charge of the numbers and get you on the right path for small business success.
Get started by signing up for an upcoming Blue Sky Workshop.
At Blue Sky, you’ll define your cost structure, explore sales channels and other elements of your business model, meet our team, and network with fellow entrepreneurs. Click here for our schedule of upcoming Blue Sky Business Modeling workshops.
See you soon!