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You are passionate about your business. You worked hard to get to where you are, and you have full faith that your company can thrive, providing the highest quality product and the most excellent customer service on the market. But maybe math, finance, and accounting are not your strong suits. As knowledgeable as you are in your particular field, and as much as you believe in your brand, without the proper financial management, your business is not likely to succeed.
A whole 25% of all businesses fail after their first year; 36% fail after their second year, and 44% after their third year. By the end of their fourth year, half of all businesses have failed. If these statistics scare you, you need to take action to prevent your business from going under.
Nearly half of all businesses fail as a result of financial incompetence. These companies have no understanding of pricing for the market, possess no knowledge of financing, and lack the proper planning to maintain a healthy budget.
Do you know how to compute profit margin ratio? How about identifying financial risk analysis? Are you confident in your interpretation of financial statements? If the answer to any or all of these questions is “no” you would be wise to invest in the proper budgeting and planning software.
Do not waste your time agonizing over complicated statistics and puzzling financial ratios. To you, all these numbers may look like the matrix or a secret code of communication for extraterrestrials, but a financial performance analysis tool like a budgeting and planning software program will put it all into terms you can understand. Using this tool, you will be able to identify risk, analyze your success within the industry, build a solid business plan, and ultimately save money and make a higher profit.
Services like this software allow you to start and maintain a business without an advanced degree in finance or statistics. Some of us are just better at using the creative side of our brains. Maybe that’s what led you to entrepreneurship in the first place.