Take a minute to consider how true the following statement is for you: “My entire financial future depends on the success of my company.”
Most business owners have much more riding on the success of their company than they like to think about. I bet the same is true for you in your business.
Between the money you have invested directly in the business plus the personal guarantees you have signed, the amount can be huge.
It creates a very interesting dynamic. A dynamic where you are either going to win big (your investment pays off and you never have to perform on your personal guarantees) or you are going to lose big (the investment turns bad AND you are called on to perform on all your personal guarantees).
That means the financial future of your spouse, your children, the people in the company who depend on you, the lenders and investors in your company, (and maybe even your parents) depends on your company surviving and thriving.
They are all depending on you to win financially.
Having an accounting and financial reporting function within your company that is firing on all cylinders will help you stay on top of your business.
It will help you reduce the possibility of losing big.
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