As discussed in Part I, Part II, and Part III of this series, growing a business is like flying an airplane. No matter how naturally talented you are or how brilliant your business concept is, everyone must take the time to be educated. The successful are those who follow instructions. In the last post, we considered the value of the right team.
If you’ve happened upon this post and are in the early stages of starting your company, I encourage you to start at the beginning of this series. If you have already started your company, but find yourself floundering, there might be some good insight for you, as well. Everyone benefits for a “wellness check” so take the time to read these short posts and check where you and your business are in the process. Today, we discuss the best part—flying!
You’re are airborne and climbing. There’s the rush of adrenaline and the pressure of G-force. As you climb, you will quickly lose perspective on exactly how high up you actually are when looking out of the window. Everything looks like a tiny toy village.
YOU NEED A CO-PILOT
Now your gauges become the primary tool you have to be able to tell if you are flying in the correct direction and to monitor altitude and airspeed. If you don’t have a really solid understanding of these tools you will not be prepared to make critical decisions with solid facts and the confidence that what you are doing is correct. How can you tell where you are if you fly into a cloud? What do you need to do if you fly into a storm? How do you correct a drop in cabin pressure or restart an engine while in the air?
The financial statements (income statement and balance sheet) are the primary gauges for your business. With an intimate understanding of these tools, you can make critical decisions, complete proper planning and make almost any business situation easier because you can see it coming and plan for it.
You need a “co-pilot” who understands the gauges intimately and can help you determine when to hire, when to expand, how much cash the business will have at the end of the year, if your plan will ultimately get you where you want to be, etc.
Right Column can be your “co-pilot.” We offer an array of financial services, from bookkeeping to CFO-level insight, with the goal of helping small business owners keep their focus on what they do best. Connect with us if you’d like to learn more about how Right Column can come alongside you to grow your business.