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A lot of people do this and not feel very self-conscious. [LAUGHS] Hi, I'm Lianne Hannaway. I am a CPA, a chartered professional accountant. And I want to talk to you about the three numbers that you need to know as an entrepreneur to run a successful business. The first number I think every entrepreneur needs to know is what is their number one. So what is their purpose? What is the one reason that is going to get them out of bed, that's really going to drive them?
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Times will get tough. It will sometimes be very, very hard. Money will be short. But if you have that one purpose, reason why you can run this business and what you're doing it for, I think it's really important to always have that as a centered number for you. It's not just about making money, but it's also about purpose, so that number one reason. The other number that I think any entrepreneur really needs to know is their credit score.
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So as you're starting off as a new business owner, businesses won't look to see how your business is doing. They'll look to who the owner is and who's running the business and what is their creditworthiness. And we wrap all that number into a credit score. Whether it's between zero and 800, that number is going to be so critical for you in running your business.
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A good number to have in terms of your credit score is anything above a 670, a 690. No one really wants to be bogged down in debt while they're growing their business, so really important as a new entrepreneur to look at your credit score and make sure that it is in a healthy position so that you can attract good capital, good loans in order to grow your business.
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The last number that I think entrepreneurs need to know is their profit. And that is the number that they need to make from their business so that they can eat, so that they can make sure that they're not running into debt and they're not running their business at a deficit. It's going to be a number that you take out in order for you to take it right off the top, put it in a separate bank account so that you know whatever's left in the business, you're going to use in order to operate the business, not to be surprised at the end of the year where you've run a business, you've paid all these people, but there's nothing left for you.
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There's nothing left to really attribute to your value, for your hard work that you've done and to run this business. So those are the big three numbers that I think every entrepreneur needs to know. Know your purpose. Know your reason, your number one reason. What's your personal credit score? So that you can attract capital to the business. And lastly, what's your profit number to make it sustainable, so that you're actually paying yourself for the value that you're putting out in the world.
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So thank you for listening to these tips. I hope you found them very useful. You can check out some more videos in the Compass library. Oh, I say "um" a lot. I say "um" a lot.
