Do You Know How Your Business Is Doing and Where It’s Going?
When it comes to acquiring the proper funds via loans for your startup, you want to make sure that you have a successful plan in place. Loan officers expect you to have a great understanding about where your business is heading financially, and without this detailed information, they are unlikely to approve you for any loans. Understanding your cash flow ratio is one of the most important aspects in maintaining updated financial analytics on your business so that you have a solid idea of where your funds are going.
- According to Barbara Corcoran, entrepreneur and Shark Tank star, small business owners must be able to give potential investors comprehensive information on their company’s financials.
- Corcoan also recommends that entrepreneurs understand their company’s future opportunities, as well as challenges.
- Finally, use specialized software to create a dashboard in order to regularly review your company’s financial performance.
“In a nutshell, Corcoran suggests that you need to be “intimate” with how your business is doing financially as well as understand what potential opportunities or challenges you see for the future”