One of the best ways for you to accelerate your business success rate is to invest in a good Financial Planning Guide. If your primary skills are in product development, business planning or marketing, it is essential to increase your Financial IQ with some business and financial planning tools. Don’t just leave all of the work to the bean counters. A good CPA and equity investment advisor are also critically important, but you must be able to think in terms of business finance for every aspect of your small business management and it is critical that you get a sound education in financial planning principles. You must know how to measure Profit and Loss (P & L) and how to evaluate your Cost of Goods Sold (COGS) and other primary functions of any business. This is where a good Financial Planning Guide can quickly bring you up the learning curve and become an essential business success factor.
As in all things, your business success will depend on a healthy balance of supply and demand. With a solid financial planning guide, you can map costs for all inputs (your “supply chain”) and all aspects of taking the product to market (optimizing your “value chain”). You will be able to quickly identify management and production efficiencies by having a very clear idea of your controllable fixed costs and your more volatile variable costs. You will be able to create a roadmap for success by measuring your business success rate of growth and know which of the financial dials you can turn up or down depending on market acceptance of your offering.
By all means, get the proper financial advisors on your mentoring team – but do your homework as well with comprehensive financial planning tools.