Having cash in the bank doesn’t mean your business is making money.
I’ve worked with many business owners who closely manage their cash flow and bank account balances. That’s great. I do the same thing both for my personal and business accounts.
Unfortunately, some stop there. That’s a mistake.
I’ve met business owners who have never looked at their P&L or balance sheet. Focusing on whether you can pay the bills or if you have money in your account does not tell you the whole financial picture.
For example, can you answer these questions:
- Are your COGS too high?
- How much did you invest in that last project?
- Which of your products, services, or divisions are making money and which ones aren’t?
- Are you incurring expenses that you can reduce or eliminate and use that money better to grow the business?
- How much are you putting toward the bottom line?
- How long can you fund operations if your business took a major hit?
As a fractional COO, I value the insights and know the importance of understanding the financial side of your business (and the KPIs that go hand-in-hand). Not every visionary or business founder likes looking at reports and numbers, but there are things we have to do even if we don’t enjoy them.
I’ve convinced clients that numbers matter, and once they see it, they get it, and they wonder why they didn’t look at them before.
If you aren’t sure where to start, we can help. Contact us on LinkedIn at https://www.linkedin.com/in/cmatt/ or https://www.linkedin.com/company/opal-partners-group/or use our contact form. CONTACT US