Nick Perry breaks down three numbers every business owner needs: ROI to track spending, cash flow to cover actual bills, and what your time is worth per hour. Miss any of these and you'll run out of money.
Never ever start a business before you know 3 numbers, because the ones who skip them run out of money before they ever get off the ground. And if you hate money, go ahead and scroll before number 2, because number 2 is the one that actually makes you rich. Number 1, ROI, because if you put a dollar in, you have to know exactly what comes back out, or you're just spending money and calling it a strategy. Then comes cash flow. See, a business can look great on paper and still get shut down because profit doesn't pay your bills, cash does. So Cash flow is what lets you outbid your competitors for new customers and survive the bad months that shut everybody else down. And finally, but most importantly, number 3, the cost of your time. Because if you work 40 hours just to make $200, that is $5 an hour. And $5 an hour is a job no matter what you call it, which is why you never start a business before you know your 3 numbers.
