A warm welcome to all entrepreneurs and budding entrepreneurs once again!
In one of my recent blogs entitled Top 6 tips regarding financial intelligence for an entrepreneur I explained some things about financial intelligence. I also stated that phrases such as financial literacy, knowledge of numbers, the language of business, etc. were sometimes used by people to mean financial intelligence. I also had the audacity to say that there was absolutely no way you could run a successful and sustainable enterprise without financial intelligence. I was very prepared to defend this position had there been any challenge. I’m still ready by the way, just in case someone is preparing to shoot down this point.
Additionally, I indicated that an entrepreneur who is financially intelligent knows for example how to properly price his/her 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 manage 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.
So, today I would like to build a bit on this foundation. Are you with me? I would like to take a look at some of the above situations one by one, and possibly throw more light on certain aspects for the sake of people who need that extra push. Candidly, you don’t need to be a certified accountant or financial analyst to be financially intelligent. Do you? The tips that we are sharing over this blog platform, which I’m sure is one of the best entrepreneurship resources, or rather one of the best blogs on entrepreneurship, are very handy. So, what are the additional tips regarding financial intelligence for an entrepreneur?
Let’s proceed now.
Candidly, I think I’ve written too much today. I don’t intend to bore you with an extremely long article and make you skip my next post. I need you to keep coming back to my blog. So I’ve got to be wise and for this reason I’m going to stop here for today.
As I close, permit me to remind you that the above are not exhaustive. Nevertheless, they are very good examples and reasons why an entrepreneur requires financial intelligence. These are indeed good tips regarding financial intelligence for an entrepreneur. Don’t ignore these by the way. I pretty much know that some CEO’s will laugh at this because they know they can easily engage accountants who will take care of all these financial nonsense blah blah blah! Better take care! You might chance on an opaque accountant who will successfully lead all of you into a deep pit. I repeat. Take note, and beware!
I wish you a terrifically good week ahead.
The Wise Entrepreneur