Math genius (not) needed
The other day, I talked to a founder who warned me about his lack of math skills. He had a degree in design – surely that means his ability to wrap his head around finance will be limited.
Many people think this. But it’s not really true.
The thing is, most of the “math” needed to understand the vast majority of finance concepts is within reach for an average ten-year-old.
If you sell one widget for $100, how much do 5,000 widgets sell for?
If you hire two people for $50,000 per year each, how much extra will that cost you in total? If we increase the price by 20%, what will the new price be?
See? You passed.
Oh, and nobody cares if you need to use a calculator or a spreadsheet. There is no reason ever to calculate anything in your head, unless you really, really want to.
Instead, what you actually need to know is what to add up, subtract, multiply and divide to learn something useful. So it’s well worth focusing on that – learning the concepts and how to use them in your business.
Some ability and willingness to learn new things, coupled with a bit of critical thinking, is helpful. Being a math genius is not required. Use your calculator proudly.
Love and cash flow,
Get Tiny CFO in your inbox
Once a week, helpful tips and ideas, no spam or other nasties. Unsubscribe anytime. Promise!