Are you one of the many entrepreneurs who break out in a cold sweat at the mere mention of financial reports?

As business owners, we often wear our ability to “wing it” as a badge of honor. We pride ourselves on our creativity, our ability to pivot, and our knack for making things work against all odds. But there’s one area where winging it can lead us down a dangerous path: our finances.

I’ll admit it – I used to be that entrepreneur who hid from her numbers. The mere thought of looking at financial reports made my palms sweat. P&Ls? Balance sheets? Cash flow statements? They might as well have been written in hieroglyphics.

Unfortunately, avoiding our finances doesn’t make them go away. In fact, it often makes things worse.

In a recent episode of The Business You Really Want, I sat down with operations expert Gwen Bortner to discuss this very topic. And let me tell you, it was an eye-opener.

Here are a few key takeaways:

1. Numbers are just data points. There’s nothing actually emotional about the numbers. The emotion comes with how we perceive the number. When we strip away the emotion, we can see our finances for what they truly are: valuable information about our business.

2. You don’t need to be a math whiz. If you’re using any sort of automated accounting system, it’s doing all the math for you. If you can dial a phone, you can read a financial report. It’s that simple.

3. Regular check-ins are non-negotiable. Review your reports at least once a month. This helps you spot trends, identify patterns, and make informed decisions.
4. Profitability isn’t just about sales. It’s your revenue minus the cost of delivering your products or services. As Gwen points out, some businesses grow quickly in terms of revenue, only to realize they’re losing money on every sale.

Why Business Numbers Matter

Understanding our finances is key to building sustainable, fulfilling businesses. It’s about having the information we need to make smart decisions, to grow strategically, and to create the businesses we really want.

If you’ve been avoiding your finances, I encourage you to take that first step. Look at your numbers. Ask questions. Seek help if you need it. Remember, you’re not alone in this journey.

And if you want to dive deeper into this topic, I highly recommend listening to our full discussion on the podcast. Trust me, if I can confront my financial fears, so can you. And the clarity and confidence you’ll gain? Priceless.

You can listen on Apple and Spotify, or watch on YouTube.