Marcus Exall’s Post

One of the biggest lessons you need to learn as a founder…. If you don’t have tight control of your company finances, you are just an employee in your own company. It’s an uncomfortable truth but if you're not deeply involved in understanding and managing your company's finances, you're not running the show – you're just doing a job in your own company. In the race to disrupt industries and build the next unicorn, many founders end up delegating their financial responsibilities to others, be it a CFO or an accountant. While delegation is essential for growth, ignoring your startup’s financial health is like building your castle on sand. Finances are the lifeblood of every company, and as the captain of the ship, you need to know where the money is flowing. 💸 Here are three reasons why every founder MUST be financially literate: 1. Cash is King 👑: No matter how innovative your idea is, you can't keep the lights on without cash. You need to keep a close eye on your runway, cash flow, and burn rate to make informed decisions and avoid sinking your ship. 🚢 2. Empowerment Through Knowledge 🧠: As a founder, you should be able to read a balance sheet, income statement, and cash flow statement. Understanding these financial documents will empower you to make better decisions, negotiate better deals, and ultimately become a stronger leader. 💪 3. Accountability 💼: The buck stops with you. As a founder, you're ultimately responsible for your company's financial health. By being financially literate, you're better equipped to identify red flags and rectify issues before they spiral out of control. Amongst all the slings and arrows of startup life, it can be tempting to make like an ostrich and stick your head in the sand. Hoping the finances take care of themselves rarely leads you to great decisions or a strong business in the long run. There’s never been a better time to take control. P.S. I learned this the hard way!