This advice is critical for both startups and bootstrapped companies because no one:
✅ Cares about your business like you do
✅ Knows your business like you do
You can only make informed decisions if you know your numbers.
You need to know the:
💥 Key financial drivers for your business
💥 Financial health of your business
General key financial drivers include: sales, net profit margin, sales growth year over year, and customer acquisition cost - but many are business model or industry specific and you need to know those - especially if you are fundraising.
Knowing the financial health of your business is also critical. While many measures are available - I rely most heavily on cash flow. The goal is to have more cash coming in than going out - and any shortfall is offset by sufficient financing.
And if time is an issue, get outside help! But, don’t delegate and forget.
I meet with clients as often as once per week to once per month to review financial results and forward looking projections. We keep our meetings efficient and productive.
DM me for a 15 minute chat on identifying your key financial drivers and checking your financial health.
