Day 2: What are your numbers?
Do you know what I’m talking about? Your “numbers” are the money you spend running your business, the money your business brings in, and most importantly, the difference between the two. This is officially referred to as a profit & loss statement. The scariest question an entrepreneur must ask themselves is “What are my actual numbers?”
One thing that I’ve learned, in life not just business, is that ignoring scary stuff doesn’t make it go away. In fact, it usually makes it scarier, because it’s an unknown. It’s always less scary when you know stuff. And you can’t grow if you don’t know. I didn’t even try to rhyme there, so, bonus.
[Tweet “Do you know your numbers? If so, good for you! Knowing them puts you in control.”] If you don’t know them and need some help figuring it all out, here are some resources:
- Check out this video by Tara Swiger to get you started on knowing your numbers.
- Tara also wrote a great post about lessons learned from income reports.
- A Simple Guide to Understanding Profit & Loss by Entrepreneur.com
- An excellent primer in bookkeeping for crafters and other small businesses by Lauren Vernell
Figuring out your numbers is about as fun as filing your taxes, but it’s a vital step in growing your business, so, sorry but you’re going to have suck it up and get started. Good news, you only have to set it up once. You may be pleasantly surprised to know that you are doing okay, maybe even better than ok. If you crunch the numbers only realize that you’re not doing so well, at least take solace in the fact that with this information, you can start correcting your course to success.