Hiya! I do hope you have had a fantabulous week once again.
Straight to the point, today we would like to consider the top 6 tips regarding financial intelligence for an entrepreneur. This phrase ‘financial intelligence’ has become increasingly common in today’s business world. I will however limit this article to the term in the context of knowledge and skills gained in the areas of finance, accounting, risk management etc. Financial intelligence is actually a subset of business intelligence, but we will talk about business intelligence in the broader sense another day. Ok?
Again, the phrase financial intelligence has also been used sometimes to mean statutory and legal financial data and information gathering, or intelligence deployed by governments and some international bodies to combat financial crime, monitor economic activities etc. I’m not writing in that perspective in my article today. I’m simply talking about entrepreneurs’, business managers’ or employees’ knowledge about numbers and related issues. I’m taking about financial literacy. I’m talking about the language of business. Do you understand me? There is absolutely no way you can run a successful and sustainable enterprise without financial intelligence.
So, an entrepreneur who is financially intelligent knows for example how to properly price his products and services, the difference between capital (CAPEX) and operational expenditures (OPEX), budgeting and budget variances, the difference between profit and cash, what financial statements are and what they mean, key indicators of business health and growth, how to make profits in an enterprise, how to minimize business losses, how to management business in a sustainable way, how to steer clear of legal and statutory problems, how to invest wisely and maximize return on investment, and so on and so on. These are the things I’m talking about when I mention financial intelligence. Are you still with me?
Now, what are the top tips regarding financial intelligence for an entrepreneur?
In conclusion, today we have looked at the top 6 tips regarding financial intelligence for an entrepreneur. You might have your top tips. No worries. You can go ahead and list them or write about them. The great and famous African writer Chinua Achebe once said, I quote, ‘If you don’t like someone’s story, write your own’. I close it right here.
With all the best wishes, and till then,
The Wise Entrepreneur