This is a super fast blog for introduction purposes and I will elaborate on this topic in future posts. This topic is financial literacy.
Most entrepreneurs (I include musicians in this category) rely on book keepers or accountants – it is great to delegate but more so it is important to understand if you are making a loss, profit or breaking even. Profit and Loss is of course the basics as is Balance Sheet and Cash Flow though critically, many entrepreneurs complain they work really hard but have little to show for their effort. What I mean by this is that the business looks great on paper but there's little actual cash commonly a result of poor financial management.
In fact as we are in recession there is an argument for an intellectual property asset based strategy rather then solely profit and loss.
Poor financial strategy is generally the main issue behind most entrepreneurial business problems.
In the current economic climate financial literacy is more important than ever; especially as it looks like we may not see a recovery until 2016 (estimated by one of my mentors Darren Shirlaw.) Yes, it may be a double dip recession.