Getting to the business side of the business 1/25/2011 11:09:00 AM 
For most, the financial management side of the business is not why they got into woodworking. Most people start up a business so they can make money doing what they love. Unfortunately for most, “financial management” is not what they love. If you’re like me, the money management side of business is something you view as a necessary evil and usually results in a headache.
However, as unbearable as it may seem, it is a crucial part of your business. It doesn’t matter how much work you have going on in the shop and scheduled for the future. If you aren’t handling your finances properly, things might not be as comfy as they seem. For a closer look at this scenario, be sure to read Dave Grubb’s blog this week.
Great marketing, a great product and the best employees around with the best training can only take you so far. Those aspects of business will get the work in the door and keep people coming back from more, but if your books are a disaster and you are not staying on top of the financial side of the business, things could take a turn for worse and you might not ever see it coming. No one wants that. Evaluate the way you’re currently handling the financial side of your business. Are there areas that could be improved? Remember to work with your bank and your accountant on ways to better manage your finances. They are there to help you after all!
The Lean section of Knowledge Base is also full of articles on financial management and cash flow issues. It’s a great place to get a few tips before taking on a financial makeover.
