Know your numbers.
Make numbers the center of the existence of your business.
Build a solid start up plan with numbers and use it to guide you into success.
Rely on your numbers when things are scary.
Be excited about your numbers when you watch your business grow.
My business came to life on paper before it was ever a real thing. Most think a business plan has to be a 25 page paper on the ins and outs of what they plan to do, who they plan to sell, etc.. I have seen some of the best and most complex businesses fit on half of a sheet of paper. Thatโs it.
Google what a pro forma is. I was able to get a template pro-forma off of a Quickbooks message board. I deleted out the items that were not pertinent to me, changed the labels and put in the numbers associated with revenues, cost of goods, expenses, salaries, and everything else. I read them and revised them over and over until I saw a plan that made sense.
Then I went out and executed and used my pro forma as a guide to measure progress.
I eat sleep and breathe the numbers of my business. Whatโs our gross margin? COGs? Expenses? Net Margin? Interest? Rents? Salaries? And because of that I know my business very well and I understand what I need to do next to be better.
Numbers donโt care whether you succeed or fail, they just tell you where you are at any given moment. Your ability to know them and understand them will be the best skill you can possess.