One of the things that most distresses me when I meet entrepreneurs is that some have very little idea about the numbers that sit behind their business.
They can sell, they can develop new products and they can manage their teams, but ask them about the difference between cashflow and profit, and they go to water.
And if the business owner doesn’t know about the numbers, you can guarantee that their staff have even less idea.
The best way around this is to hold a special Finance 101 seminar with your team. Get someone form outside to come in and explain the basics of business reporting – what a cashflow, profit and loss and balance sheet shows, and how money moves through the various stages of the business.
If you don’t want to hire a specialist trainer, get your bookkeeper or accountant to come in and have a chat to the team for an hour.
Not only will this help your employees to understand the mechanics of your business, but it will also give them some knowledge that will be useful throughout their career.
(Oh, and if you’re one of those entrepreneurs who doesn’t quite understand financials as well as you should, these staff seminars will be the perfect cover.)
Get SmartCompany FREE to your inbox every weekday.
Get it done – today!