Money
There never will be enough – so make sure you use what you have sensibly.
(notice the repetition?)
It’s a fact that 9/10 start-ups fail because they run out of cash.
I’ve started more then one under-capitalised business in my time and there is little that is more soul-destroying than starting or buying a business that needs £400,000 to get off the runway – with funds of £250,000.
Then watching it burn the £250,000 and crash before take off.
In spite of my earlier comments about having to be head-cook and bottle-washer all the time, I know that a complete and detailed understanding of finances will be the most important business skill you will ever need.
Women who can run rings around bank managers and accountants are a sight to behold – and they are sadly few and far between.
I meet too many X-Women whose finances are amateurish and often invest many hours with them and their senior managers to nail this one down.
Understanding your finances will help you to face some unpalatable truths about the state of your business – but will be your escape route to a greater sense of self-confidence.
Mastering your finances will also help you to understand some of the tolerations that the head-peckers are beating you into submission with – and give you the strength.
Money and maths don’t get emotional.
You should never get emotional about them.
- Monthly management accounts
- Monthly Key Performance Indicators
- A full-year budget and cash flow forecast
- Average daily production for all fee-earners
- Fee-earner profitability analysis
- TCO conversion figures
- Return on Investment from marketing activity
*An excerpt from The Female Principal manuscript by Chris Barrow – to be published as an ebook later in 2014
