Change the way you look at your numbers, and the numbers you look at will change!

More often than not, I see many confident, successful business owners sink in their seats when they are asked about their financial information.  And nine times out of 10 it has nothing to do with the bottom line.  What it does have to do with, is that feeling you get when you know you should understand what it is you’re looking at it but it just ain’t making sense.  This is often derived from the pressure we put on ourselves to be all-and-sundry in our businesses, and the reality of the situation is we actually do have to be to some degree, but not master of all.  This is especially true as a small business owner.  The all-and-sundry hat that we must wear has to incorporate not just all of the comfortable stuff .. we need to also extend ourselves enough to learn the things we don’t know.

And numbers seem to be a common area for a lot of small business owners that poses the biggest challenge.  And it’s not because as business owners we don’t want to understand, it’s that we put it in the too hard basket thinking that it requires some all-encompassing degree just to be able to get it.  I’m here to tell you that you just need to look at them like you look at every other decision you make in your business, and with the same confidence.  You know these numbers well, you made decisions that resulted in these numbers.  They ultimately are just a consolidation of several moves you made.  So why are you so afraid?

In my experience the fear that most business owners have when it comes to numbers is born out of the pressure, they put on themselves to get it exactly right.  Once you give yourself permission to accept that you don’t need to look at these numbers in the exact same way an accountant would, but to look at them as a business owner, you’ll find the freedom to interpret the information as a business owner should.  At the end of the day you’re there to be a business owner not an accountant.

Want to know the secret?  By the time you are looking at these numbers the moves have already been made, the cash is already been committed, the only thing you have to do now is work out whether you achieved what you wanted to achieve ..  if you did great, if you didn’t … what are you gonna do next.  And believe it or not, the numbers you’re looking at are going tell you how you should proceed.  You just need to look at them with enough confidence to see the narrative.

So, here are 3 things I recommend practicing as a business owner when you feel you lack the confidence when it comes to understanding the numbers in your business.

1.      Always ensure that the information you are reviewing is accurate and up to date.

Financial information is a moving target.  Therefore, I would recommend sourcing your information at a point in time such as at the end of a calendar month, quarter etc.  And if someone else is preparing this information for you to review, don’t be afraid to request that the information be complete prior to you reviewing it.  I’ve seen too many decisions made from wrong information for fear of asking that simple question.

2.     Make sure the information is represented so that it makes sense to you.

I’ve lost count of the number of times I have spoken with business owners and they have told me that they tried to look at their financials, but it just didn’t make sense, so they didn’t continue.  My response to that, every single time is, that clearly the information and the way it’s presented to you isn’t presented in a way that makes you want to look at it.  This might sound silly but it’s such an important point, if the way your information is presented, doesn’t make sense to you, change it.  Make it make sense.  We have amazing online products that allow us to cater our reporting, if you have someone preparing this information for you ask them to make the change … after all it’s your information you should be able to have it represented anyway you like.  And there are no rules as to how you should represent your financial information.  So what are you waiting for?  Work out how you want to see it and what makes sense to you and change it.

3.     Take the time to understand your information.

As business owners I understand we are driven by time or lack thereof.  We seek for instant information for instant change, and more often than not, some areas of our businesses require a little bit more time than an instant.  Your financial information is one of those that require a little bit more of your attention and time.  So, take it don’t ignore it, be sure to give yourself enough time to understand the information you are looking at and the power that information has over the future decisions you make in your business.  Understand that this will be an ongoing work in progress as a business owner, so it won’t happen overnight.  Just like everything in your business if you commit to the time, it will happen.  And if you have any questions don’t ever be afraid to ask.

Take a moment with your numbers long enough to understand that they are really powerful resources in business.  Not only because they tell you where you’ve come from, but they hold the key and the secrets to where you could take your business.  You just need to take a moment, they don’t bite.