Financial modeling is essential for any company. But what do business owners and leaders need to know about it?
When it comes to business, there’s:
- 2% you know you know;
- 2% you know you don’t know;
- 96% that you don’t know you don’t know.
Finance is one of them.
I’ve spoken to thousands of business owners and the number one thing I hear the most mistakes made in is their finances.
Put simply, it’s because they don’t understand the purpose of good financial modeling.
Part of the reason why I wanted to create Cardone Ventures in the first place is because I never wanted business owners to have to go through what I did with my first company.
There was a lack of proper financial modeling, poor decision-making, and relying on other people’s money to build my business.
I thought I was on top of the world — until I wasn’t. If only I’d known what I know now then.
The better your finances, the better your business outlook
Financial modeling preps you for the present. It also preps you for the future.
I say this because if done strategically, you’re able to test different scenarios, budgets, costs, and allocation of corporate resources.
It’s a way to ensure you’re thinking ahead by prepping in the present.
Why is financial modeling important?
Other than painting an “attractive” picture of the company’s money, financial modeling also acts as a tool that allows risky business ideas and scenarios to be estimated in a cost-effective way.
Additionally, it helps extend your company’s footprint. In other words, you’re visualizing and actualizing at 10X levels — a key component to growing and scaling your business.
And if you want to grow your business, you’re going to need to learn how to create a solid and strategic financial modeling.
Now, if you’re ready to dive into uncharted waters and uncover what you don’t know you don’t know, join us for the next Finance Essentials Workshop.
My team and I go over everything you need to know about business finances and how to make them better, more optimized, and 10X.