Business Finance Is A Skill You Can Learn (Even If You Hate Numbers)

If you are not a numbers person, business financial literacy can be daunting.

Here’s a little secret…you use numbers every day.

In fact, this morning, you may have weighed yourself.

Today’s number is 200. By itself, the number 200 lbs does not mean a lot, but when you compare it to last week’s number of 202 lbs and last month’s number of 210 lbs you’ll start to notice a trend in your weight

When you think back over the last month and consider all of the sacrifices you’ve made, your brain automatically asks “Was it worth it?” In the business world, you are quickly considering the return on your investment (ROI). Was it worth the time, money and energy you invested in your new fitness program?

Did you study to become a fitness trainer to learn how to read the scale or how to interpret the results? No, of course not. Over time, using the numbers have become second nature to you.

Here's another example... 

You may have checked your blood sugar level, so the decision is practically made for you whether you need to stay away from the sweet snacks in the break room.

Did you have to spend years studying to become a Doctor to learn how to read the blood sugar meter? Of course not. Over time, using the numbers have become second nature to you.

Still not convinced? Here's another example of using numbers in every day life. 

This morning, you may have made sandwiches for your kids’ lunchbox.

You have 3 kids, but you discover you only have 2 slices of bread. What do you do?

To solve the immediate problem, you make one sandwich for your picky eater and give lunch money to the other kids so they can eat in the cafeteria. 

You also add bread to your grocery list so you will prevent the problem from happening again tomorrow morning. 

Are you a Mathematician because you learned the relationship between the number of lunches you need to make and the amount of bread you have in your kitchen? Of course not. Over the years, you’ve learned the important Lunch KPI for making sandwiches – bread to kid ratio.

Want one more example? Here is a great example of a number you've used since you were 16 years old.

On the way to your office, you may have noticed a speed limit sign – 55 MPH.

This sign tells you the rule. Your brain quickly considers your options. Do I speed and risk getting a ticket or do I slow down and risk being late to the meeting?

You may be thinking…what speed limit sign? You’ve driven the same route so many times that you did not notice the signs this morning. You instinctively know where the speed traps are. And you know the alternative route if there is a traffic jam.

You are so comfortable with the route that you were on autopilot.

Did you attend the police academy to learn how to read the speed limit sign? No. Using the numbers have become second nature to you.

Bottom line

You use numbers every single day to make decisions. You don't hate numbers. You just need to invest more time strengthening this skill. Before you know it, business finance numbers will become second nature to you just like the numbers you use every day in your personal life.

The best part is you do not need to become an accountant for business finances to become second nature to you.

It pays to boost your business skills.

What would your business look like if you invested the time to learn how to apply all of these skills?

You’ve invested time learning how to sell and deliver your services. And, I’m sure you’ve attended classes to learn how to be successful in other areas of your business including marketing, leadership and time management.

Business finance is like other business skills. You can must learn how your business generates, spends and saves money.

Imagine the competitive advantage you’ll have when you use the numbers to plug profit leaks.

After a little practice, you’ll learn how to change the number.

Before you know it, you’ll take control of your financial future.

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