“…I would have, but I’m not very good at maths”. How many times have we heard that? I love quadratic equations and differential calculus as much as the next guy…
Good news bulletin: Simple Maths rules the business world.
If you’re familiar with the following symbols you’ve got all the number skills you need.
+ – x / % < >
You only need grade school math. But, you’ve got to be quick with your numbers, know which ones matter, understand industry averages and which ratio’s to look for – top of mind. The most important of all these symbols is %.
Everything that matters is represented as a percentage:
Rates of interest
Return on investment
Price earnings ratios
Debt to equity
Get to know your key financial indicators. Simple tools used on the share market are your best friend even for a small start up. Fundamental analysis is always based on ratio analysis.
Your company will only ever be what it earns and remember these two things that entrepreneurs often forget:
Two people went to work on their startup business.
Joseph got up early started at 8am and worked until midnight, he finished all the tasks on his to do list.
Mary slept in, was tired, got up mid morning flicked through the newspaper, had a few good solid hours in the afternoon and goofed off after 5.30pm. She did not complete all the tasks on her to do list.
Question: Which entrepreneur achieved the most in said day?
As entrepreneurs the most crucial mistake we can make is confusing activity with progress. The entrepreneur who achieved most is the one who made the most progress towards their end goal.
We should not confuse time spent with value created.