Over the past 2 ½ years, I’ve written two posts about small business financial management. They were definitely NOT the most popular posts on the blog. But for small local businesses, they may be among the most important. (Links to both at the bottom of the post)
I was motivated to write a new post by a LinkedIn link, shared by Kenda Morrison of Small Biz Symphony.
The article, “How To Track Critical Small Business Financial Numbers.” is an excellent glossary with easy to understand explanations of all the financial terms every small business owner should know and be using.
Small business financial management does more than show if and when you can pay your bills
It can and should inform the direction of your marketing. (article below)
It can help you figure out how and where to expand your business.
I have a wonderful client with a high-end fishing guide service in northern India. His financial management efforts showed him that he needed to expand his business beyond the fishing season, and even indicated how and to whom he should expand.
It’s a transitional time of year. Don’t wait for the New Year to resolve to make better use of the financial information you have about your business.
If you’re clueless get some help. In most states in the United States there are Small Business Development Centers that offer small business financial management assistance for free or for very low cost.
There are seemingly magical insights to be discovered behind those numbers, and it’s worth a little effort to discover the magic. You might just be doing better than you think you are!
Thanks to Alan Levine for the photo on Flickr
Below are the two past posts also discussing financials.