I’ll spare you the preamble...
There are three essential numbers, you, the business owner, need to know before you invest another minute into building your business. Three numbers, that if you’ve been feeling a little lack-luster of late, will kick you into high gear.
Here They Are
The rate of return you’re making on your personal investments
Your retirement needs shortfall
The true monthly compensation you require
According to research cited by SCORE, 82% of business owners close their doors because they don’t know their numbers—not just the ones above, but the business basics (sales, COGS, profitability, liquidity, and net value) among other key performance indicators.
In my option, however, there’s a bigger issue. After working in the entrepreneurial ecosystem for over three decades and four major centres; Toronto, Ottawa, Vancouver and Saskatoon, the underlying issue I’ve observed, driving the majority of failure rates across Canada, is what I refer to as the GAP.
Addressing the GAP
I personally believe Founders fail for one, if not all, of the following reasons:
They don’t have a financial GOAL in place for their business
They don’t have emotional ALLIGNMENT with the goal
They don’t have a financial PLAN in place to achieve the goal
Making money is a fundamental tenet of business. It’s not the only goal, but without money—and to be clear, I’m referring to bottom line profit—there is no business.
So how to address the GAP?
Start by determining the goal, the financial end-game by waking up to the reality of your personal financial position, both current and future.
Knowing your retirement shortfall
Knowing the rate of return you’re earning on your current investments, including your business
And lastly, knowing how much your business needs to pay you on a monthly basis to ensure you and your family are financially taken care of, that you’re safe
Your Wake Up Call
These three numbers, when uncovered, are the catalyst to your financial success in life and business.
If you’re ready to take control of your financial future, The Wake Up Call Challenge is around the corner. It's the perfect opportunity for entrepreneurs who are serious about taking their lives and bottom lines to the next level.
With five days of live coaching and lifetime access to on-demand tutorials, you'll get your financial life on track - all while keeping you accountable throughout the process.
If you’re looking to learn more, head over to our info page. We look forward to helping you forge your fierce.