Episode 2

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Published on:

12th Nov 2024

Think Of Your Business As A Garden

How does YOUR 'garden' grow?

"Think of your business as a garden," I tell people.

It helps take the complexity out of the financial jargon.

Where you are today with your business may not be where you want to be tomorrow, but it’s shaped by the seeds you're planting today.

Hi, I'm Mahmood Reza from Numbers Knowhow and in this episode of the Numbers Knowhow podcast, I've boiled it all down to simple terms.

Whether you’re just starting out or trying to scale to new heights, understanding the fundamentals like revenue, profit, expenses, cash flow, assets, and liabilities is crucial.

Think of them as the vital elements for nurturing your business garden.

By the end of this episode, you'll have a clearer picture of what it takes to grow a healthy, profitable business.

You’ll feel more in control and less overwhelmed, enabling you to make better financial decisions.

Remember, we’re here to help you Plan It, Do It, PROFIT.

Transcript
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Think of your business as a garden.

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Imagine your business is a garden. Just like plants need

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water and sunlight, your business needs money to grow. But in the

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business world, money has its own language. Financial

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jargon. Let's break it down simply. Revenue.

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It's those seeds that you plant. Revenue is the money

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your business earns from selling products or services. And just

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like seeds, the more you plant, that is sell, the bigger your

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garden. That is your business will grow. Profit. Think of that

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as the fruit you harvest. Profit is what's left after you pay

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for everything else. Think water, think soil, think

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tools. It's the reward for all your hard work. No

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profit, no harvest expenses equivalent

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to the care that you give. Expenses are the costs of running your

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business. Just like water and fertilizer for your

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plants, these are necessary to keep your garden healthy. And you

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don't want to overspend. Cash flow. Just like the weather

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forecast, cash flow is the movement of money in and out

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of your business. Just like you watch the weather, know when to water

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your plants you need to watch. You need to track your cash

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flow to ensure your business has enough money to

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thrive. Assets. It's the tools in your shed.

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Now, assets are the valuable things that your business owns.

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The equipment, the inventory, or even patents.

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These help you to keep your garden that is your business running

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smoothly. Liabilities. Those are the weeds in your

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garden. Now, liabilities will represent what your

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business owes. The loans, your bills. Just like

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weeds, you need to manage them carefully so they

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don't take over. We wouldn't want that, would we? By

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thinking of your business as a garden, financial jargon

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becomes easier to understand. Keep your garden well

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tended and your business will flourish.

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About the Podcast

Numbers Knowhow: Business Improvement and Performance
Understanding your business finances
Why Numbers Knowhow? Well, I've been asking myself for years why so many business owners, artists, and creatives feel overwhelmed by numbers.
I’ve always had a knack for breaking down complex financial concepts into something that’s easy to digest.
My name is Mahmood Reza, and welcome to Numbers Knowhow, the podcast that’s designed to strip away the financial jargon and give you straightforward, practical advice to help you master your business finances. Our mantra here is three simple words which I'll reveal throughout the podcast.

In this teaser episode, "What is Numbers Knowhow?" I kick things off by addressing the common fears and anxieties many people feel when they think about their business finances. You’ll discover that you’re not alone if profits, cash flows, and budgets make you feel uneasy. We believe that with the right guidance and tools, anyone can get control of their business finances. Whether you’ve just started your business or you’ve been running it for years, there’s always something new to learn.
Today, I’ll introduce you to our core philosophy — and explain how these three steps can make a transformative difference in your financial management.

By listening to this podcast, you're not just signing up to gain some financial knowledge; you’re empowering yourself to take actionable steps towards a wealthier future.
You’ll learn how to plan effectively by using simple tools like a cash flow planning platform. You’ll understand why it's crucial to execute these plans efficiently.
You’ll see how focusing on these early steps leads directly to profitability.
Not only will you be better equipped to handle the numbers side of your business, but you'll also reduce the stress and anxiety that often comes with financial uncertainty.
You’ll start to feel a new sense of confidence as you make better, more informed business decisions.

About your host

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Mahmood Reza

Hi, my name is Mahmood, accountant, educator and author of the book, I Hate Numbers !!
I actually love numbers and what they can do for my business – and every business - but I come across so many people who have a real fear of numbers/maths/accounts (and accountants), and therefore, their business struggles to survive, never mind thrive. If only they knew how to get a fondness and some kind of control of those numbers!
Why am I so passionate about all of this stuff I’m putting out into the public domain? It’s my belief that once you understand what your numbers are, where they come from, and what they mean, you can use them to make better decisions and ultimately make (or keep) more money. What every business owner wants, right?
The one thing I’ll always guarantee you, is that whether you’re the CEO of a global corporation, or a market stall trader in your local town, your numbers matter – and you simply can’t get away from them. This book is your chance to get them all in one place, face your fears, and start making those numbers work for you.