60% of businesses fail in the first five years, and 83% fail due to poor cashflow management. Michael King of KFE Solutions created his business in 2015 with the goal of helping entrepreneurs understand their numbers so they can make better decisions. When he started out in the business world, he recognized the hurdles standing in the way of understanding financial fundamentals and pledged to fix it for himself and others.

In this episode, Michael expresses how using his superpower for teaching small businesses by distilling business concepts into understandable, easily consumed nuggets helps real people. He explains that since the majority of the U.S. GDP comes from small businesses, it’s important to empower small business owners with knowledge and confidence. Their success in turn can strengthen communities and families.

Tune in to learn more about the power of knowing your numbers as well as Michael’s top tips for how to establish a strong financial foundation in your company.

Topics in this episode:
- Cashflow management
- Cashflow forecasting
- Net profit and gross profit
- Business fundamentals
- Small business growth
- Understanding accounting and finance
- Leaders and financials

Takeaways from this episode:
- It’s not unusual for accountants and bookkeepers to struggle with communicating financial concepts in an understandable, relatable way. Find someone with a teacher’s heart to help you understand.
- The power of knowing your numbers might be a daunting journey, but it’s one worth taking to keep your business afloat and thriving.
- The critical 4 numbers an entrepreneur should know: revenue, gross profit, net profit, and cashflow.
- A cashflow forecast helps you think about how much money you have in the business today and how much money you think will go into the business over time. This helps guide expenses.
- Be conservative while estimating your profits; optimism isn’t the goal in cashflow forecasting because you have to be prepared for the worst.
- Even if you’re succeeding with sales/ marketing and your operations, your business will stagnate without a knowledge of finance.

To learn more about Michael King and KFE Solutions please visit:
https://www.linkedin.com/in/iammichaelking/
https://www.kfesolutions.com/
https://www.instagram.com/i.am.michael.king/

To book a free strategy session with Jillian:
https://mariemae.com/consulting

To learn more about Marie Mae :
https://mariemae.com/

To learn more about The Good Office Podcast:
www.thegoodofficepodcast.com

Show notes and more resources:
https://thegoodofficepodcast.com/episodes/51