If I were to start a new business right now, the first
thing I would do is create a spreadsheet and map out its financial
structure. What are our software expenses going in? Will we need to
outsource or hire for initial projects? Do I need to go through any
business training? Will there be any cost of goods associated with
the product?
If the numbers look good, then I’d move on to product
development, marketing, operations, etc. If the numbers don’t seem
to make sense, however, then I wouldn’t work on anything else in
the business until I felt like the financial structure of the
business is sound. After all, what’s the point of all the work if I
don’t know if the business will even be profitable?
I understand that my desire to look at numbers first
might come easier to me than to you, but it’s a learnable skill. I
wasn’t born with it, but I learned its value over time and then
honed it.
That said, with everything going on with COVID-19 right
now, knowing your numbers is now NON-NEGOTIABLE.
You cannot make prudent and informed decisions about
your business unless you’re paying attention to the numbers behind
them. Your numbers will guide you towards the decisions you need to
make, ESPECIALLY when things are tough like they are right
now.
That’s why for this episode, we discuss:
Why you need to take your numbers seriously from the
start
The difference between making money online versus
running a real business
The basic marketing metrics you need to
know
The basic personal financial numbers you need to
know
The basic business finances you need to
know
Why GOOD bookkeeping makes your numbers dramatically
easier to understand
About the Podcast
Bookkeeping and business education company dedicated to helping online entrepreneurs create profitable and healthy businesses.