A Known Financial Position – What I call KFP – is essential to your success and profitability. “Known” is the key element. It may be that you are losing money, or deeper in debt than you would like to be. Find out how much and how deep. That’s what we focus on in the Making Money section of your Biz Plan. The financial reports are the Scorecards in the game of business. You can always improve the score. But you must know where you are right now. Additional exercises include: Budgeting, establishing your Selling Prices, and sound Month End processes for staying at KFP.
In my experience as a business consultant, I’ve found that nine out of 10 business owners don’t know where they stand financially. There are a couple of reasons for this.
- They don’t know how to keep score.
- They are afraid to look, because they don’t want to know how bad it is.
Be in the 10%! Work through the Making Money exercises so you can operate with financial power!
For more on Making Money, check out these blog posts…