In my previous blog LINK I gave many real life examples of small businesses and entrepreneurs making serious mistakes because they didn’t understand the numbers of their business. Here’s a quick summary:   Focusing only on the top line (sales) instead of on the bottom line (profit) Not understanding how their sales break down across products Not measuring gross margin and having no idea how much they make on each sale Not understanding how their gross margin breaks down across products ... [continue reading]

At ProjectionSmart we talk about how important it is for you to understand your numbers, but what do we mean by that? Understanding your numbers means knowing what numbers are critical to your business, exactly how each number affects your profitability, and how to impact those numbers to make your business more successful. Let’s think about a baseball team. Imagine that this team kept no statistics (i.e., numbers) about how they were doing. During the game the players and the manager didn’t know ... [continue reading]

This blog is part 1 of the most common financial mistakes that I’ve seen small business make in my 30 years of small business experience. Avoid these big ones and you’ll miss some potentially huge setbacks. Mistake #1: Understand your numbers! Most people start a business because they have a passion for something. They want to meet a need in the marketplace or do some good in the world. They know their product, and they know who their customers are and how to reach them. What’s the one thing they... [continue reading]


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