How Well Do You Know Your Numbers?
With Halloween coming quickly, I thought it was an appropriate time to discuss Fear. Most Business Owners experience fear at one time or another. It may be a single fear or many different ones. It may be the fear of failure or the fear of success. However, one fear that seems to be consistent with Business Owners I have met is the fear of numbers as they appear in financial statements.
The fear of numbers is called arithmophobia. It’s comprehensive in nature, as it covers the fear of certain numbers (like 13) and the generalized fear of all numbers. You may also hear it referred to as numerophobia.
I’ve heard Business Owners fear numbers because what if the business isn’t doing as good and they think it is. My response, what if it is doing better than you think? Until you get the correct numbers in front of you that you understand, you do not truly know how your business is doing. Numbers tell the story. Numbers have no feelings.They are not ambiguous in nature or shouldn’t be. Numbers don’t lie. Most of the answers to all your business questions reside right there in the numbers.
Business Owners of all sizes, regardless of the number of years they have been in business, often share they do not look at their financial statements on a monthly basis. Most of them will say that they don’t know how to read them and often feel embarrassed about it. My response is always the same, “You have NO reason to be embarrassed! I don’t know how to build a website, frame a new addition on a house, create delicious meals, or submit proper paperwork to the state like they can.” I can’t do what my clients do, but I can read financials and I can help direct these Business Owners on a path to succeed and exceed their goals. I can teach them how to craft their financial statements so they are the most useful to them allowing them to make the best decisions for their business. What Business Owner doesn’t want to have that kind of confidence? The ones who do sleep a lot better at night.
Most likely, the business’ Chart of Accounts was created by selecting an industry within QuickBooks for a basic set-up, initiated by someone the Business Owner knows, or by a bookkeeper.Technically, the Chart of Accounts is most likely correct, but has not been customized for your particular business.
So Business Owners. . .I ask you. . .How Well Do You Know Your Numbers? If you click on the link below, you will be able to download a FREE assessment tool to find out. It’s a simple 10 question assessment you can complete, add up your score, and then see how you rate.
https://drive.google.com/file/d/1gVPHbaT_kot0Ku-VQqAgS9O98HT3bxIT/view?usp=sharing
If you are happy with your results, GREAT! But you know you can always do better, right? If you are not happy with your results, let’s work together and change that.
When Business Owners understand their numbers, a HUGE transformation occurs within them. They become empowered and their confidence level soars. It’s an amazing thing to witness and the absolute favorite aspect of what I do. At this point, their businesses will begin to grow exponentially. Those who do the work have experienced a 3-6x multiple of their gross revenues and also sensational net income results too.
What fear is holding you back from taking control of your business through the power of knowing your numbers? Is it the investment? Even though you know that the ROI will be high?
Parting thoughts. . . A good friend said this the other day about the work I do, “You think working with Teresa is expensive? She’s a whole lot cheaper than the cost of the challenges you may be facing in your business or the closing of your business.”
P.S. Not sure how to even get started learning about your numbers? You’re in luck. That’s how I help. When you’re ready to get the conversation started, simply schedule a meeting with me by clicking on this link: https://calendly.com/tapedigo/60min and we’ll take it from there.
