As the owner of a fledgling startup, it’s easy to get thoroughly absorbed in product design, marketing and the day-to-day operations of your business. However, it’s important that you devote time to improving your financial literacy, too.
Financial literacy simply refers to your ability to manage your business’ finances. This includes keeping accurate records, making forecasts, setting budgets or even reading financial statements. While such bookkeeping and analytical work may seem second to making sure that your products sell, it’s essential to making sure that your business is profitable and in a good position to meet the challenges a dynamic market can throw.
You don’t have to become an accountant, but in order to make informed business decisions—especially when finance comes into play—you should have a good understanding of the financial position of your startup, including expenses and the state of your startup’s assets and liabilities. That way, you’ll be able to avoid falling further into debts, simultaneously improving your ability to make the most of opportunities that come your way. Not only that, but a promising, well-founded financial forecast can help you find investors
Clearly, financial literacy will play a key role in allowing your startup to thrive and grow. Try visiting Investeur’s Startup Market to get the expertise you need to be more financially savvy.