The fact is, whichever side of the fence you sit on, it’s impossible to escape numbers, they’re everywhere, making the world – and business – go around. Are you a business owner who comes out in a cold sweat at the mention of finances? You’re not alone – many start-up entrepreneurs are passionate about their businesses, but can turn into gibbering wrecks when they have to explain their financial position – if you’ve ever watched Dragon’s Den, you’ll be familiar with the confident business owner who makes a perfect pitch, only to go down in flames when the Dragons start to probe his or her finances more closely.
Why is it so important for a business owner to have a firm grasp of their finances? Imagine your business venture as a road trip. You know where you want to get to but you set off without a map or Sat Nav, your dashboard instrumentation doesn’t work and you decide not to take any notice of road signs en route – what could possibly go wrong? Well lots of things of course: the chances of you reaching your destination are extremely slim. You’ll probably run out of fuel, if there’s a problem with your vehicle, you won’t know about it and will most likely break down. Most worryingly, it’s virtually certain you’ll end up on the wrong side of the law, collecting penalty points and hefty fines – maybe even losing your licence.
OK, it’s a pretty unlikely scenario (I hope), but it’s not so different to the way that some business owners start out – with no way of monitoring or measuring their financial performance against budgets. Just like our driver who sets out more in hope than expectation, an unhappy outcome is predictable. There are likely to be problems with cash flow, ignorance of legal requirements and obligations will lead to fines – and the business will almost certainly fail to reach its destination on time – if at all.
Even if you consider yourself not to be financially minded, it’s essential that you have a basic understanding of the key aspects of your finances, and how each area impacts on your business. If numbers and finance are not your thing, don’t worry. Later this month, we’re running a workshop on 20th November in Wallingford aimed at people just like you. At our ‘Understanding Your Finances’ workshop, you’ll learn how to easily measure your performance against projected targets so you can check you’re on track, how to look at your balance sheet and get an instant snapshot of your profit or loss position at any point in time – and much more besides!
You have nothing to lose but your fear of numbers, and if you are more of a visual type of person, we’ll even show you how to put ‘traffic light’ tools in place, using colour coding to help you recognise key financial information.
Take the first step to putting yourself in the driving seat of your business and book your place today!
Understanding Your Finances
20th November 2014, 930am-1pm
Howbery Park, Wallingford
Graham Carson, from Inca Accounting, will demystify the terminology of accounting, help you to identify the key numbers which drive your business and show you how to measure them in a simple, easy to follow and fun workshop. He will also be giving away some simple to use tools to help your business. Come along and have some fun with your finances.
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