Have you ever get answers to this question, like; not understand online marketing, ads, sales, management, etc.? 

It is partially right, but there is a deeper reason for that. 

See, most businesses are successful when the economy is booming. But most of them fail when the economy busts and economic recession hit. The cycle is ten years or so historically (now it’s longer due to all the money printing). So most businesses’ longevity depends on when they started their business. The recession could hit in your fifth, sixth, seventh year, etc., and then you would crash as the economy crash. So the reason is not related to optimizing and maximizing upside. The real reason is managing the downside, limiting it, and turning recessions into your greatest opportunities. 

So what is the no. 1 lever that will solve this? 

It’s financial control and creating a financially sustainable business that runs on healthy financial fundamentals. 

Most small and medium-sized businesses don’t get the correct numbers. Most businesses do accounts only to file the tax return and optimize (change) data to save on taxes. So the numbers are not accurate. In addition to that, 90% of SME businesses use cash accounting in the US, so the nature of this accounting principle flaws the data. And most businesses get their (wrong) numbers only once a year to file the taxes. And when they learn the numbers for a year, they don’t know how to read them. So there is really only 2-5% of small and medium-sized businesses that regularly bring the correct numbers (accrued accounts) regularly (you must get the accurate financials every month!). Are these numbers similar only by coincidence? I don’t think so. Because of these facts, most business owners fly the plane called business blind for a year and then see whether it lent or not. Sorry, that is not correct, most of them cannot read the numbers even if the numbers would be valid, so they are flying without understanding all the dials in their cockpit. So they don’t know how to correct the course, change actions and change the outcomes and after a year doesn’t even know whether they lent or not, because they don’t know what destination to choose. 

Should you want to beat the odds and survive and thrive long term, you need to know how to read your business dials and turn the numbers into actions you need to take to improve these numbers and build a healthy business. 

In addition, when you do that, most businesses will bring 10-15% of revenue in cash straight back to their business, which usually solves most business problems. 

And! The optimized business has more room for error and will survive economic downturns so you can survive and take over the assets of other businesses that failed. 

Imagine it; should you have a 1 million dollar business, what would you do with 100-150k in cash? Would it help you to solve all your problems and grow your business to the next level? And what if you have 10-15% cash more on a regular basis without increasing your revenues? How would your business change? How would your lifestyle change? How much more valuable would your business be? Maybe two times? Three times? Perhaps much more, because now your business is just eating cash, so the value is zero!

To make it a reality, do these steps:

• start the second set of books with accrued accounting and get accounts once a month
• learn to read these numbers and know the blueprint to move the right levers to make these numbers work for you
• or find someone who will turn these numbers into actions and will find the hidden cash in your business that you are now leaving on the table

When you do that, you will: bring back the cash left on the table, solve your cash flow problems, optimize and maximize cash flow and so the value of your business will grow, and you will build a recession-proof business and turn crisis into your biggest opportunities. 

Are you good with numbers? Do you have a financial model you can follow and monthly measurements to know whether you are actually improving or not? (Profit is not the correct number to measure!) Are you familiar with these concepts so you can do it by yourself? 

No? 

You can download a free e-book where I shared a financial blueprint that will help you to build a fundamentally strong business or schedule a call with us for a free 30-minute strategic consultation to unlock the hidden opportunities in your business and get a customized plan to make this a reality (for businesses with over 500k USD in revenue)

Krystof