My kids introduced me to a farcical reality show “Bar Rescue”. We all know that it’s staged. It is too formulaic to be real. But I as always am interested in the financial aspect of business even if it is just illusions.
The amusing or sad part of the show is that most places close, some revert back to their original names and processes against the rebranding done by the show.
But I did find this section of an article that truly sums up my belief no matter what the business is:
The makeover is cosmetic and financial. That same Reddit post reveals something painfully obviously as you watch the show, whether or not it’s fake: a lot of people have no clue how to manage a business. You can remake a building in five days, but teaching someone the basic principles of turning a profit takes a lot longer. The inability to understand cost and margin is a big contributor to bar failures.
So real or fake, the financials are the financials. That is why most business owners need to have a strategic partnership with qualified advisors to assist where you have weaknesses; which is why we assist the majority of our business clients with their financial decisions. We work closely with our clients to help them overcome their weaknesses and succeed.
All business owners need to know the financial status of their business. Financials are a management tool, not just a history lesson.
You should know where you were, so that you can plan on where you are going, in a timely fashion.