IT IS a brutal fact. A survey shows that 90% of small businesses fail in the first five years, and the irony is that 42% of these business owners claim the most unpleasant thing about their business is – finance!
Global financial coach Christina Xu from Australia said: “I was one of them too when I started… so I faced the same challenges that small business owners faced. It is shocking but true, despite the fact most of the challenges are money related, many small business owners don’t even think finance skills are essential for their success.”
A qualified CPA (Master of Accounting), Xu has been using her financial expertise to help small companies and Fortune 500 companies to become even more profitable.
“Many people start, or want to start a business to create wealth and success, but unfortunately 90% of small business wind up in three years. Out of the remaining 10%, some may be struggling without proper system and support; especially financial tools, it may be the last thing they consider,
“These small business owners are so dedicated to their business that they don’t know they need to track their financials, and they don’t even know how much they own from their business,” she said.
Xu added just like driving a car and reading the dashboard instruments, running a business is about making frequent check-and-balances to know that you are headed in the right direction, so that you will arrive at your intended destination.
“Running a business is same. When you drive your business vehicle, you need to understand the finances, the KPIs (Key Performance Indicators) too.
Xu who has just finished writing a book “Think Big” has also developed a simple and effective financial management system called “7 Financial Secrets to Creating Wealth,” to help small businesses plan their finances.
In this Q&A, Xu talks about the essentials of business financial systems and how to utilise these tools to make better business decisions, to track success, and increase the bottom line.