Like many people, I love to travel, partly because of the wonderful differences you encounter in other places and cultures. London is a favorite city for a number of reasons, not the least of which is the “barrier of a common language.” The differences are colorful to me if ordinary to the average Brit. One of those colorful phrases is emblazoned along the Tube (subway) platform to warn you that stepping off the train can be precarious if you don’t “Mind the Gap.”
As a banker, I’ve had the privilege of meeting and working with many entrepreneurs and business owners. Each one has a unique ability or service or product that they offer to the marketplace, and all share a courage to launch out into the sea of uncertainty to build a business by bringing those unique offerings to the rest of us.
But sadly, many of these creative, courageous people suffer from a common malady – a gap they often fail to mind that results in failure or inordinate struggle in their entrepreneurial efforts. My observation (though I cannot statistically prove it) is that this gap is more commonly responsible for business failure than either natural or economic disasters.
What is this gap they aren’t minding, you ask?
Too many do not understand and attend to the financial and administrative needs of their businesses. They may be truly inspired geniuses at their particular industry or niche, and they may produce the best ‘widgets’ ever conceived, but in many cases they have never learned how to manage the finances, operations and administration of their businesses. Many don’t understand how to read financial statements or even why they need to. Many are so tuned-in to their product that they miss the importance of their organizational chart and governance.
Now, in fairness to these bright and hard-working people, no one can be an expert in everything. We all have our strengths and weaknesses, so it is certainly understandable that a brilliant veterinarian or website designer doesn’t have the same facility for reading a balance sheet or income statement. But if they want their businesses to succeed, it is critical that they take the time and effort to learn the basics. These are more than just numbers after all – they are the pulse of your business. They are the thermometer for identifying trouble and opportunity, and the capacity for how you can grow in the future.
So, what if this is you? One great way to overcome this weakness is to bring into your circle professional advisors who have these skills and can help fill in the blanks. Sit down with your accountant, banker or attorney (btw, if you are a business owner, you need them), and let them teach you what they see in your financials, your bookkeeping processes, and your organizational documents. Surround yourself with experts who are strong where you are weak. This might mean finding a partner or business manager with these skills whom you can trust to tell you what you need to know when you need to know it. Or it might mean recruiting an advisory board of professionals in various fields who can share their wisdom and experience. It’s been said, “Hire to Your Weaknesses” – a great bit of advice.
Learn to ask questions about the numbers. Become familiar with standard metrics that 
are key for your industry such as profit margin and cost of goods sold. Learn how to properly price your services, how to value your business, and build your balance sheet. This information will enhance your ability to respond to challenges when they arise and give you what you need to make sound business decisions that will aid your success. Ignoring them will almost certainly guarantee trouble or even failure. I’ve seen so many sad stories of situations that drove off the cliff because the drivers because of the blinders they chose to where.
And after all the work, planning, and heart you have put into bringing your dreams to life, they deserve this effort to keep them safe and growing for the future. So Mind the Gap – fill it with good information and helpful people who will keep you moving safely along your enterprising adventure!
Enterprising Community 