Alright, listen up. I’ve been in the game long enough to know this one thing for sure: if you don’t have your numbers straight, you’re already playing catch-up, and that’s not a good place to be. Now, I know you’ve got a killer idea, and everything looks shiny and exciting in the beginning, but trust me, it doesn’t mean shit if you don’t have your accounting system in place from day one. This is a lesson learned from years of screwing up so you don’t have to.
So here’s the thing: as soon as you’ve got that shiny new business ID in hand, the first thing you need to do is set up your accounting system. No, it’s not fun, and yes, it’s probably the last thing you want to deal with. But it’s absolutely critical. I cannot stress this enough—if you don’t have your numbers right, you’re screwed.
QuickBooks, COA, and the Numbers Game
If you’re new to this business thing, keep it simple. QuickBooks isn’t hard, and it’ll get the job done for most folks. I’m sure there are other options out there, too. You can figure out all you need to set this up with a quick search on YouTube or other online tutorials. But the key is making sure you have a proper general ledger chart of accounts (COA) in place. Yes, it sounds boring, but trust me, it’s like building the foundation of a house—without it, everything else will eventually crumble.
Here’s a reality check: investors don’t care about your grand vision or how cool your product is until they see the numbers. And if you can’t pull them up in an instant, you might as well kiss that investment goodbye. I’ve been there, sitting in a meeting, thinking I could talk my way around the numbers. Guess what? That didn’t go so well.
Get It Right—For Yourself, Your Team, and Your Investors
You need to know your numbers at all times. This isn’t just for the investors; it’s for you. Even senior staff often won’t know the numbers as well as they should. As the founder or leader, you need to stay on top of things and not get blindsided. And here’s the thing—your investors will respect you a hell of a lot more when you know your numbers inside and out. Don’t sugarcoat them. Your investors, once they’re on board, are on your side. They want to see you succeed, and part of that success comes from being transparent and honest about where things stand.
So, here’s the takeaway from this week’s Hustler’s Guide: set up your accounting system, know your numbers, and never walk into a meeting without them. If you don’t, you’re gonna find out the hard way—just like I did.
Keep Moving Forward!
The Not-So-Guru