In my quest to build my inventory I have been meeting owners and doing valuation and the fundamental truth is that the difference between a successful business owner and a unsuccessful one is that the successful business owner knows his numbers. I’m not talking grand tax strategy and fancy terms like EBITDA etc. I’m talking how much he brings in, what it costs for him to do that and what his receivables are. Sometimes people get nervouse when buying or say “numbers are too complex”, when this occurs you sell yourself short and set yourself up for failure.
Accountants play their role but rarely do you see accountants leading businesses…..business leaders and owners know thier numbers but also think in a fluid motion. We all know life isnt an equation and stuff happens. So the lesson is know your numbers, build reserves, and plan for the future. In other words “Be the master of your destiny”.