Idiotopedia Lite: Profitability - The New Black?
I remembered the last time I talked to my founder's friends and how he told them about his parking service business. He talked about the amazing, hard problems he had fund raising and working with investors he already had. So, that makes me want to give my simple opinion based on the pictures that are attached.
Yes, we can all agree that it's hard to start a business in Indonesia. People who invest are being more careful with their money, and there is a lot of competition. Still, I see would-be startup founders every day who are full of million-dollar ideas but don't know the first thing about simple money management.
Remember! Don't just hustle; pay attention to the basics. The income statement, balance sheet, and cash flow statement are the three financial statements that every business owner should know. These aren't just dull financial process; they're what every business needs to stay in business. For sure, passion and hard work are important, but they can't pay the rent.
Well, the proof you need to show that your business can make money is needed. That means you need to have a good grasp on your sources of income, expenses, and cash flow. In the end, making money is hot button. The really exciting part is that making money is sexy. It's becoming more and more important for investors to see startups that can clearly show how they can make money, not just ones that vaguely promise to change or grow quickly.
Don't use words when you're pitching your idea to investors the next time. Instead, stick to the basics. Not only tell them how you're going to change the world, but also how you're going to make money.
My last thoughts here: Are you prepared to put in the work? It takes time, discipline, and a laser-like focus on financial metrics to transform a business idea into a profitable venture. Are you ready to work long hours and make tough decisions that will contribute to the long-term growth of your business? If the answer is "no," then entrepreneurship might not be the right fit for you. That's not necessarily a bad thing. However, if you truly want to make your business great, you should learn how to analyze those financial statements. They will help you succeed...
Any other thoughts?
CFO at Count / Director of Finance Operations at Blackpurl
7moThanks for sharing Mandy!