"The only irreparable mistake in business is to run out of cash. Almost any other mistake in business can be remedied in one way or another. But ... when you run out of cash, they take you out of the game." - Peter Drucker
Finance deals with analysis of past and present data for the purpose of deploying or investing the organization's monetary and capital resources to greatest advantage.... and dealing with this area is one of the least favorite things a business owner wishes to do.
BUT, they must deal with it and plan because if they don't they will never be successful and survive.
Most small businesses do not go under because they are not profitable but rather because they lack capital and have poor cash management.
Accounting and financial issues tend to be unpopular among entrepreneurs. This is somewhat strange because MONEY is important to most entrepreneurs – they are often obsessed with it. They struggle to raise it, they save it, they borrow it and they spend it.
Some entrepreneurs find the financial issues behind money tedious. Others find it intimidating. The result is that many entrepreneurs do nothing. Finances in many businesses become the state of the checkbook each morning. If there’s cash, the business is still around and if there’s no cash, the business has major problems.
To be successful businesses MUST attend to the numbers and attend to the most important number of all – profit – closely, diligently and professionally.
In order to be successful, we must sell our goods at a profit and satisfy our customers.
As Steven Covey says, "No profit, no mission."
“Civilization and profits go hand in hand.” Calvin Coolidge (1872–1933), U.S. Republican politician, president.
If YOU are a business owner who hates dealing with finances... hire someone who does and listen to them.