Seven reasons why you should love your numbers
Thursday, March 26, 2015/
I am pretty excited right now because tonight we are throwing a launch party for our new startup, We Love Numbers.
This business has been three years in the waiting. My partner Sarah and I have tried to build a business that we would have loved to have around us as we have gone on the entrepreneurial journey and still would want around us.
It can be easy as a new business owner or startup operator to fall in love with what you’re doing while ignoring the underlying numbers that will make or break your venture.
I want to share some reasons why you should love numbers too!
1. Numbers enable you to make smart decisions about how to grow. You have to use your gut a lot as an entrepreneur but it is valuable to have some information (your numbers) to back up your gut feeling.
2. Numbers lets you know if your current business strategy is working and viable. If you are not growing each month or if you are losing money, it is important to find out quickly so you can pivot or change your pricing model.
3. Numbers stop those stressful situations when you get surprise bills like BAS and Super. There is nothing worse when you think you are in an OK position and you suddenly find out you have a large payment to make tomorrow and you don’t have the funds in the bank. With modern technology you should know your running liability every day.
4. Numbers stop you from wasting time on things that aren’t working. You might have a number of different products or services that you are selling. If you look at their numbers individually it may highlight that one of them is not worth selling anymore and you can simplify your business.
5. Numbers keeps you focused. As an entrepreneur you are prone to getting distracted by the new opportunity or shiny new object. Numbers are a great grounder and will highlight what you should be focused on. Generally this should be on sales.
6. Numbers let you know if you can take money out of the business. Ultimately we are in business to enhance our personal life. You need to know your numbers so you can start reaping the benefits of all of your hard work.
7. Numbers are a fact of business so you might as well have a positive view on them. I find life is a lot easier and more successful when you take a positive view. Rather than seeing your numbers as a burden, realise that they are a representation of you and your business and that they actually enable you to be free.
So, if you don’t have your numbers up to date, know how to interpret your numbers, regularly look at your numbers or make decisions off your numbers I am giving you a warning. You are making a big mistake and potentially you are on the path to becoming one of the businesses that make up our shocking statistics of failure. Take some positive action right now and start making your numbers a priority, I can ensure you that if you do, you will love numbers!
Finn Kelly is the CEO and co-founder of award-winning Gen Y financial advisory firm,Wealth Enhancers, along with the parent company, premier private wealth management firm WE Private.