Know Your Numbers

Numbers, numbers, numbers.  A good friend/boss of mine once told me, “You have to know your numbers.” If you own or run a business and don’t know your numbers, then you are destined for disappointment- whether in your operating performance or when you make that ‘someday’ decision to sell your business.

Here is a not so unusual example. Recently, we did our financial sleuthing into the statements of a prospective client of ours. Many questions came up and he had no answers. It has taken him over a month to get back to us with the answers. “I’m happy that you asked me for those details and I’m embarrassed to say that I do not know what is in my own financials. Now I do. Things have been going well for a few years and I’ve made a lot of money, but I just didn’t pay attention to the details.”

In other words, the company was really a checkbook for him. If there’s a lot of money in the till it’s good but you still don’t know why. And because of this, you don’t know if you could have been much more profitable. Every business has an opportunity to be more profitable…but, you’d better know your numbers.

Recent Posts

See All

Prepping a company for sale

1. Make Changes which will increase the value of your company: Create the culture of growth that buyers seek. Create written procedures for the most common processes. Know and track your Key Performan

A Buyer's View of Financial Statements

When a buyer considers the purchase of a company, the most important aspect is the financial health of the company as shown on the P&L and Balance Sheet as well as the tax returns. While the profitabi

Prerequisites to Selling a Company

1. The internal financials must be impeccable A prospective buyer will always start with the financials and tax returns. The financials must correlate to the tax returns. Inventory must be properly ac

Follow Us:

What They Say About Us

"I can’t begin to express how grateful we are for your help and guidance with the sale of our business.  You managed to lay out every step we needed to do.  You found us the perfect buyer and held our hands to the very end. When we look back on the whole experience, we realize that it could have been a nightmare without you.  We felt as though you were always by our side to either answer questions or to just calm our nerves.  We would highly recommend you to anyone looking to sell their business. Your experience and knowledge in everything from valuation to marketing to execution of all the little details made all the difference."

Home Services Cleaning Business (Seller)