I speak to a lot of business owners and managers. Some green, some very experienced.
And I find that many simply do not understand the true financial position of their business. You might be shocked to hear that.
I know that many people who run or own businesses have little or no financial training. But if you own or run a business, let me make it clear. You need to understand the numbers.
And it’s more than just being able to read a P&L.
Knowing your financial position is not hard once you know which numbers to watch. Look at profit, cash and your margins every month, and ask your bookkeeper to explain anything you do not follow. For a good place to start, have a read of what is profit margin. There is also a general page on gross margin on Wikipedia.
