Finances and especially accounting never seem to be a high priority for entrepreneurs. As one myself, I can totally understand why. We tend to be geared to creating something new, rather than managing what exists; to the bigger picture rather than the detail; to the sale rather than what follows the sale.
However, when e-commerce businesses hit the $10-20,000 a month sales mark, I’ve noticed a pattern. They’ve got launched and found 1,2 or even several products that make sales…and profits…probably. The embarrassing truth is: they don’t really know quite whether they have in fact made a profit.
In short, their businesses are running if not blind then at best, partially sighted. They’re in a fog, a messy situation. Hence this 10K Tuneup mini-series.
The truth is that, once your business is off the starting blocks and has achieved some kind of market adoption for products, finance is a function that needs to become as front and center to your mind as the CEO as marketing and sales were, to begin with.
But how do you approach the business of accounting? What matters? And how do you get what you need from the numbers?
In this episode, we explore the big picture answer to some of these questions