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Transcript
How actually can you track your progress using your net worth? You can have key indicators like KPIs for your net worth, so if you see really shrinking your financial resources during time and just see that your debts are growing it’s really important to see why and is there another time coming in this process when new financial resources come in, so you don’t have period of panicking. But it’s also seeing even on your soft skill side again, is it still reachable what I’m aiming for or did I lost track and I’m completely kind of screwed. So, it’s always important to put some milestones where you can actually check in with yourself and reiterate your net worth again to see okay I’m on the right path and I can continue.
Coming back to the KPIs it’s kind of hard actually in the beginning of a business to implement KPIs because normally like KPI the normal ones are like revenue minus costs and all that but still we are, for example with Equalista, we’re in the development phase and in the development phase you only have debts, you’re actually only spend money. So, what we do to keep track of our finances is always to check okay what our own expenses and then do scenario calculating. That means if I don’t get any financial resources within the next six months, what can I do with it? Can I budget it in this way, then I only get that far? But can I have another option? Or do I find another grant or funding for example to get help of. So it’s like to be a little bit creative with simple KPIs which just allow you to be aware of where your financial resources go and what we always do is a monthly check in. We explain to everyone in our company or to our team where the money went. So, everyone has kind of a feeling where our resources go and even celebrate if we spend less but also don’t be panicking when we had to spend more, but I think a monthly check in is the minimum you need to do. Be aware of your numbers and keep track because sometimes bills or invoices get lost and it’s super important to track that. That’s my advice.
