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Blog Post from BizEquity

This is the golden age of entrepreneurship. From a college dropout with a brilliant business idea, to an excellent home baker starting an online bakery, entrepreneurs in the new millennium are changing the tides of traditional businesses. But with 50% of start-ups shutting their doors even before they hit the 5 year mark, the one thing that seems to deter some budding entrepreneurs is taking stock of the numbers that matter. Because numbers are the building blocks of a successful business.

The art of reading numbers and understanding what they are trying to tell you is at the core of a successful business. If you can’t make the numbers work for you, then no matter how great the idea, you will just not hit its maximum potential. Here are some of the numbers that you need to evaluate to create a strong, viable and successful business.

1. Seed Capital.

As you sow, so shall you reap. You need to carefully consider the capital you need to invest in your business because this is what is going to initiate the chain reaction for everything that follows. Weigh your marketing plan, competitors’ positioning, potential risks and profitability factors to understand exactly how much money you can safely invest. A great way to gauge the market, while raising capital, is to test crowdfunding on one of the many crowdfunding platforms, such as Kickstarter.

2. Projection.

This translates into the yearly budget and estimated profit. The important factors to be considered while calculating this are the raw materials or capital costs, labor charges, buffer, taxes, rent, maintenance, other unaccounted costs as well as input and outflow of both workforce and finances.