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