Financial story telling Archives | Numbers Knowhow

Know Your Numbers & Financial Ratios

Mahmood Reza — Fri, 02 Feb 2024 09:28:52 +0000

Numbers are everywhere, and for the most part, we just ignore them. That is unless we’re forced to pay attention to them when it comes time to do our monthly taxes or budget. But, for most people numbers don’t seem interesting. And this is something I’ve seen over and over again. Know your numbers I can’t emphasise enough how important it is to know your numbers. In your business, your numbers are your best friend. Once you realise that you will become less anxious about them. The enormous benefit your business numbers give you is clarity about how healthy your business is. They will help you in the good and not-so-good times. Because numbers don’t lie to you. They will always give you that reality check. They’ll wake you up from slumber and prompt you to take action. Financial ratios Your numbers can be turned into financial ratios. Consequently, they can tell you a lot about your business’s health and where it could be headed in the future. Here’s a quick guide to how to know your numbers and how to use the most essential financial ratios. Subsequently, you can start using your numbers to make smart decisions for […]

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Decision Making Under Uncertainty

Mahmood Reza — Fri, 14 Apr 2023 09:10:10 +0000

Decision making when things are calm is not the same as decision making under uncertainty. Because when it’s business as usual, you pretty much just follow the strategy laid out in your business plan, and take action that you’ve planned out beforehand. But let’s face it, although every business goes through periods when things are running like clockwork, there will certainly be times that will be challenging. This, by the way, is part an parcel of running a business. And the challenges will come in different shapes and sizes. For example, not knowing if we’re going to keep certain clients, changes in costs due to prices going up, etc. It is those things that will take unpredictability or uncertainty a notch higher. As a result, we will feel the anxiety kicking in. However, regardless of the situation, in business it’s essential to make decisions quickly and efficiently. In this video, I go through the steps you need to take to make rational decisions when everything is going crazy around you. Here’s a summary of them: Stay calm, or become calmer Going back to the anxiety I mentioned above, it is vital to try to stay as calm as possible. […]

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How To Use Your Financial Plan Effectively

Mahmood Reza — Tue, 11 Apr 2023 09:40:37 +0000

Creating and following a financial plan (your financial story) is an important step to taking control of your finances. If you’re like most business owners, you know that it’s important to have a financial plan in place. But do you know how to effectively use your financial plan? Keep reading for steps on how to put your financial plan into action! In this blog (and vlog), I’ll share four tips on how to effectively use your financial story. It doesn’t matter if you’re just starting out or have been working on your financial plan for a while. It’s always good to learn something useful or brush up on something you’ve perhaps not paid much attention to up till now. How to use your financial story effectively Here are my four golden rules to follow when it comes to using your financial plan. You’ll see that it all really has to do with being familiar with your numbers and continually going back to them to check if you’re doing a good job realising your business targets. So, let’s see what the four tips are. It’s about setting targets and sticking to them Use and access your data Decide how often […]

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How To Do Financial Planning For Your Business

Mahmood Reza — Sun, 10 Jul 2022 21:38:18 +0000

Why on earth should you be bothered about Financial Story Planning ? Launching a small business can be a very exhilarating experience, although it can also be quite overwhelming at the same time. So, with all your goals clearly drawn out, it’s also important to dedicate just as much time toward understanding good financial planning for small business. Financial Planning – What is it exactly? A well thought-out financial plan is probably the single most important thing your small business needs. It’s a guideline, a road map if you will, and a reminder of what your key business objectives are, and what you want to achieve as a result in both the short and long term. Small business financial planning also involves understanding what your likely costs may be, and it attempts to address the key ways in which you will manage those costs. In fact, good financial planning for small business owners is so crucial that all your various creditors, investors, shareholders and stakeholders won’t even bother turning up in a meeting if you don’t have a detailed financial plan at hand. The importance of writing your Financial Story Plan At the very least, financial planning for small […]

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The Advantages Of A Cash Flow Forecast

maishedu — Sat, 04 Jun 2022 19:57:05 +0000

There’s no denying that running a business requires you to keep your finger on the pulse. Take your eye off the ball and you’ll soon find that you start to lose a grip on what matters. However, many people struggle to keep control of everything when running their businesses. Essentially, it can feel as though you are always chasing your tail and getting nowhere. This is the reason why it is important to assess the finances of your business. You’ll have greater control, a balanced view and you can reach for the skies when growing your business organically. If you have heard of a Cash Flow Forecast, you might think that it is another piece of jargon that means nothing. Additionally, you might think that you simply don’t have the capacity to tackle another process within your business. However, now is the time to recognise the importance of a cash flow forecast. Are you prepared to learn even more about your business? If so, Let’s take a look at the Advantages of a Cash Flow Forecast. Prepare For Future Cash Shortages It’s important to understand both negative and positive cash flow. This is vital as you’ll need to prepare […]

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