When you start out in business things seem pretty simple. You track your leads and income, and know most of your costs off the top of your head.
So long as you don’t spend more than you earn, and your cash balance is positive then happy days!
But as you scale, things become more complex.
In order to understand where the risks and opportunities are in your business you need to learn the language of business: accounting.
It allows you to understand and answer these questions and hundreds more. You can look at the key numbers in your business and instantly know where to focus your efforts. The financial statements become clear, and easy to understand, giving you confidence to make decisions.
Accounting allows you to keep score.
For example, in fitness coaching you track key client metrics:
From this you compare them to others, benchmark against their goals and adjust their training, nutrition and rest accordingly.
You’re able to do this because you have intelligence as a coach when it comes to this area. You instinctively know what to adjust to get the client results.
Financial intelligence is just the same when applied to business. You look at the data, you know what’s good or bad and then you either know (or can get help) with adjusting your strategy and tactics.
Don’t shy away from your finances any longer. Take the first step today to improve your own financial understanding.
An easy action would be to read more blogs like this, and check out my content on Instagram @simonkallu
60-minutes of practical tips and actionable advice you can do today. Master your finances, minimise your tax, and scale your business to grow big!