Series: Tech startup success – Part IV: How to become a numbers person
Welcome to the fourth and final instalment of our “Tech startup success” entrepreneurial series. Here, we’ll look at how to develop a head for figures.
You can’t be a great CEO if you can’t get your head around the numbers. But like most business skills, this one can be learned over time.
The best approach is to tackle your finances as if you are already a public company. What would your books have to look like to satisfy your shareholders? Setting up this way in the beginning ensures you’re always in control and makes it easy to scale up as your business grows.
With that in mind, read on below for four tips to help you take on your finances like a Fortune 500 CEO.
Find a mentor: If handling the financials really isn’t for you, find someone who can help. This could be a business partner, colleague, or accountant. While you don’t need to do complex sums off the top of your head, you do need to understand the money that’s flowing through your business, and a mentor can quickly get you up to speed.
Over-prepare: Once you’re in the know with the basic ins and outs of your business, you should learn to prepare the kind of financial statements expected of a public company. Understanding your finances at this deep level will give you control that extends far beyond your books – into every aspect of your business.
Build a budget: Whether you develop it alone or with help, every business needs a budget. A strong budget ensures you don’t overspend, forces you to think carefully about every dirham, and can help you save money by shining a light on your spending habits. Its importance cannot be overstated.
Managing company finances can be a challenge. But get it right, and it can be incredibly rewarding – empowering you to make faster and more informed decisions across your business.