|Over the weekend I was a judge for the Black Girl Ventures Philly Pitch competition. A trend that stuck out to me was how easy it is for entrepreneurs to tell their story, to talk about their great product or service, and even talk about their sales. When it comes to the numbers, most struggle in one way or another. Whether its projections, customer acquisition costs, operations, run rate or profit margin. This is unfortunate because the one thing that is the most off-putting to a potential investor is when entrepreneurs who don’t know their numbers.
Great ideas are plentiful, but profitable and sustainable ideas are much harder to find. You need to factor in every single cost associated with your product and not just the obvious ones. Business is all about numbers, and your numbers are telling you a story. If you want to be in business for the long haul, you need to understand that story.
When you know your business numbers it makes you a better entrepreneur. It doesn’t need to be scary — investing in this knowledge will build unshakable confidence as a business owner. There are many resources available to help with automation, tracking sales and financial reports. Even if you are afraid, then do it afraid! As long as you do it.
Our next session is a Financial Town Hall with Jeff Bruno, Founder of Your Outsourced CFO. Jeff works with small businesses to help them increase their financial acumen and develop insights into key financial metrics. Jeff will be answering any and all questions related to financials so bring it!