Finance is the key language of business. If you understand finance, you’ve taken a giant step towards understanding how the score is kept in the business world and will understand how to build a business that will survive and prosper in the 21st century.
To be successful, a business professional must understand the financial implications of all of their spending, borrowing, and investing decisions, everything from the time value of money, to how to calculate interest payments on a loan, to how their operational decisions affect the bottom line of the business.
Even if numbers scare you, it’s really not that difficult to gain an understanding of the key financial concepts and how you can apply these concepts to understand your business and make decisions.
Without a core understanding of finance, it’s difficult to make the most profitable decisions on behalf of the business.
If your employees don’t understand the basics of your business’s finance, they are likely to base their decisions on something other than what will make money for the business. How many times have your been surprised at the unprofitable decisions your employees have made? Chances are they made poor decisions because not because they wanted to, but because they didn’t understand enough to make the right decisions.
On the other hand, if they do know how there actions effect the business, even if you are not there to ask, they are much more likely to make profitable decisions for you. They may also discover ways to increase your profits as they make the day-to-day decisions that affect the business and your customers.
Utilizing the Institute for Finance and Entrepreneurship’s on-demand or on-site Finance Without Fear training program, business development and planning solutions, and coaching and mentoring services, its easy to get the financial knowledge you need to be successful in the business world.