What are the real numbers?

Tax time reminds us of the need to accurately know the numbers. While it seems to be optional for governmental officials to keep good books, business owners and entrepreneurs live and die by the numbers. Last month we talked about the practical differences between strategies and tactics. We also touched on the importance of ‘counting the costs.’

There is a prevailing mantra in the halls of congress that we have to pass earth shattering legislation spending trillions of future dollars and we have to do it TODAY or the world will come to an end. Think about it. Political issues aside, how in the world can anyone make decisions that have such extraordinary financial consequences WITHOUT EVEN READING THE BILL? Hard to comprehend, isn’t it?

Didn’t expect a political rant?

Actually, the politicians illustrate a very important point for us. Entrepreneurs are famous for making quick decisions without scrutinizing the numbers. In times past, we could get away with it much easier because cash flowed and when all else failed, access to credit was easy.

Suppose, from this day forward you couldn’t borrow a red cent? Would you operate your business differently? Would you carefully project the numbers and clearly understand the pro-forma for every strategy you planned to execute?

Seriously, think about it for a minute.

Whether you have access to capital or not isn’t the issue. Remember, nobody ever thought the banks would stop lending money and that happened last September. So if you run your business as if everything must produce results and positive cash flow, you win. You’ll be producing products and services that your customers really want and are willing to pay for in this tight economy.

That’s the core of turning great ideas into income, profit & equity.

Cheers,
Steve

Steve Olds
Founder and CEO
www.STRATWORX.com