5 Key Financial Management Lessons You Can Learn From 'Shark Tank'
The show Shark Tank, where entrepreneurs pitch investors for capital, has some great business financial lessons. Primarily, the questions they ask teach you what's important in business and what you need to know about your business to be successful.
1. Know Your Numbers. If you don't know your numbers, then you can never fully understand what makes your business tick, what your growth potential is, and most importantly, what makes you profitable.
2. Sales Do Not Equal Success. This lesson is vital because healthy sales can often create an illusion of success in a business. However, sales are not the same as profits. If you're spending more to earn each dollar you bring in, then you're at a loss and your business won't stay afloat for long.
3. Look for Smart Money. If you're ready to take your business to the next level, then you need smart money that comes from investors whose experience and network can team up with you to help you grow your business and turn a nice profit at the same time.
4. Be Unique and Solve a Problem. The most successful founders built businesses to solve problems they faced. They’re building for a market they understand and are passionate about while setting themselves apart from the competition.
5. Cash Reserves Solve a Lot of Problems. Having significant cash reserves gives you the ability to make a large purchase immediately. It can also protect your business from a lot of potential problems that need sudden, unexpected payments.
With your business dreams at stake, you can't run the risk of being unsuccessful because you failed to focus on the financial side of your business, because the truth of the matter is that the "financial side of your business" is your entire business.
Do you know your numbers and have a system to maintain your finances?
