Financials follow behaviour. The action of people always comes first. The best way to understand the numbers is to know the behaviour that will lead to them.
When you read the financial performance of a company, they’re really reporting what people did, not a set of numbers that live in isolation. This may sound like a ridiculous reminder, but in financially obsessed world investors, cubicle dwellers and entrepreneurs alike often forget this. When we remind ourselves of this fact, you can not only predict the future, but you can create it.
You need to know your internal numbers and profitability. But if you’re trying to predict your start ups fortune by owning the numbers, then you’re really just counting chickens…
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