Writing as part of our contribution to The Entourage Blog, we look at how emotions can impact your business finances.
We work with hundreds of startups and small businesses around Australia and often see emotions dictating the look, feel and performance of how people describe their business’ finances. Business owners can overplay their success and work more from a vibe then a genuine understanding of what is actually happening in their business.
While the emotional attachment and passion you have towards your business is probably the reason you have a level of success in the first place, it’s even better sometimes to take a step back (and away from the emotion) and look back into your business. Why? Because starting to think like an investor or advisor to your own business may tell you some interesting things. Continue reading “Are emotions impacting your business finances? The Entourage Blog”
Writing as part of our new contribution to The Entourage Blog, we look at what numbers do businesses need to show investors.
The first step any company should have is an understanding of what your product is and who the market is you are selling to. This is an absolute must before you even start chatting to anyone else. But when you start these conversations, what are some questions you will get asked by investors?
How do you acquire the customer and how much does it cost?
When acquiring a new customer, there are a range of costs that you have to think about. Google AdWords, Facebook advertising etc. How much are you spending on acquiring this customer?
What’s the lifetime value of a customer?
How much you make from a customer over their lifetime is critical to understanding what your future prospects will look like. The value of the data about your customers spending habits helps you and potential investors understand what your customer lifetime value.
What are your overheads?
That is, what are the costs that you have that aren’t directly related to a product sale. Staffing, rent, utility bills, IT costs, they all give a great understanding not only on what your cost levels are but how you run your business.
Why is it important for you to be able to answer these questions? It comes down to you owning the business numbers. And by doing so, you give potential investors confidence that you know what you’re talking about and know where your business is at.
You can read more about numbers for investors here.
What is the difference between a bookkeeper and accountant?
I recently attended the launch of Jack Delosa’s new book, Unprofessional, in which he talks about his experiences as an entrepreneur and business owner.
I was immediately drawn to his chapter on Knowing your Numbers as a business owner and the great decisions you can make when you have them. At Nudge, we love it when business owners and clients know their numbers to make great business decisions!
Jack outlines from his perspective as a business owner and business educator the types of people you need to work with to manage the finances of your business. A bookkeeper and accountant were two key roles that he viewed as critical in any business, no matter the size. I have used extracts from his new book as it gives his perspective as a business owner on how he views the different roles.
What is a bookkeeper?
A bookkeeper is someone who does the administrative and operational tasks that relate to managing the finances of the business.
Continue reading “Do I need a bookkeeper or accountant or both?”
Nudge has been chatting to start-ups over the last week and we wanted to let you know where we’ve been.
We started last weekend at The Entourage’s Scalable & Saleable program where I mentor some amazing business owners on their start-up finances.
Why? You can never get enough of your start-up numbers because they tell a story about your business!!
We started off the last day of the August program with a mentor’s motivational brief alongside Jack Delosa, Andrew Morello, Petar Lackovic and Clair Jennifer among others ….
Continue reading “Nudge has been talking to start-ups over the last week….”