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When Budgeting or Planning the Future – Check the Numbers

I got reminded of this simple idea or concept by one of the Internet marketing guru’s who shared some of his valuable knowledge regarding how to create your future. And, one of the key components in his discussions was the importance of making the numbers talk to you – in advance.

What a simple concept. As I reflected upon the importance of knowing your numbers, I recalled how I had used this simple technique when I moved to Memphis and opened my business without knowing any business leaders in town. Wow, this would be very scary today given the amount of security and technology used today.

However, the numbers were my main guide during the start up years. Knowing your numbers relative to all the critical processes was required for success.

Does Everyone Know How Your Company Makes Money?

This question seems to be a mystery for most executives and small business owners. Yet, it should be at the fore front of all the employees on your staff – especially the sales team for a B2B Sales Team.

Why is this wisdom lacking main stream knowledge and understanding with everyone in your company?

Well, there are a four obvious reasons…

  1. Not everyone is a financial major from college
  2. Not everyone understands the accounting process
  3. Not everyone knows how a profit is created
  4. Not everyone has any idea of how much cash flow is vital to the success of the company

Well, what can be done to improve this important piece of knowledge?