18 Unique Features of Math in the Life of an Entrepreneur

May 26
Unique Features of Math in the Life of an Entrepreneur

There is a saying “numbers never lie”. In this competitive world of business, an entrepreneur needs to rely on numbers. It allows him to be 100% certain of his decisions. It keeps him ahead of the competition and gives him more grip over the elements of business. So, math is a crucial part while you try to manage your dream organization.

Here are 18 clearly defined reasons why math is an entrepreneur’s best friend. You will clearly see the overlooked benefits of math after going through this list.

1. Analyze the Current Position

Analyzing every part of the organization in an accessible figure is very important. Math helps the entrepreneur to determine the current position of the whole organization. It lists all the capital, equity, and liability. Now, the entrepreneur can understand the current position of the organization.

2. Look Beyond the Predictions and Hypothesis

Many new startups fail because they rely more on hypothesis and predictions. They make a lot of assumptions that may not represent the actual scenario. This is why math is so important to access the real deal. It will break down the entire hypothesis and give you concrete figures. You no longer have to rely on predictions.

3. Compare the Crucial Market Elements

You should check the depth of the water before stepping in. Mathematics can help you to do just that. With the help of math, you can see where the market curve is going right now. You can determine the necessary steps according to the market curve. You must know what the figures mean. Only math can help you to do so!

4. Proofread Future Investments

Many people might invest a big chunk of money while seeing the large cash flow. But, an entrepreneur who knows his numbers will never make such a mistake. He will go deeper into the figures and try to find out the associated risk. Plus, the investor must also consider the rate of return to see how much he is really gaining.

5. Keep Track of the Spending

Another key issue for new entrepreneurs is the tracking of spending. A lot of them spend an unnecessary amount of budget on less important tasks. Plus, they do not assign value to those expenses. This is crucial for controlling expenses. A smart entrepreneur with mathematical skills will always keep track of his expenses.

6. Articulate the Projects and the Proposals

An incomplete proposal is something that puzzles and annoys many investors. They do not want a mystical promise of profit. They want to see the real figures behind the ideas. This can only happen when the proposal maker is good at math. It helps to articulate the whole proposal.

7. Interpret Market Research

Everything we do in a business revolves around grabbing the attention of the market. So, you need to properly interpret the shift of the market. In order to understand the market statistics, you need a good understanding of the mathematical aspects. It helps you to identify which figure shows which future outcome.

8. Assign Priorities in the Works

Many entrepreneurs want to do everything at the same time. By doing this, they mess up the integrity of the original tasks. So, you need to prepare a proper schedule and assign priorities to those tasks. You can assign a proper number just by identifying how much ROR they fetch back for the company.

9. Design a Better Plan with Facts and Figures

Planning is the head of the whole organization. It dictates where the company is going to end up in the future. So, you need a plan with the right figures and attributes that can lead the workers with clarity. This is why you need to be better at math – so that you can design the plan with more accuracy.

10. Prevent Error & Frauds

No matter how much you try to hire good people, you can not be certain about their integrity. They could either make errors or do dubious activities inside the organization. In order to prevent them, you need good accountability. Math is the root of all accountability. It makes your employees more cautious about frauds and errors.

11. Prepare Better Contingency Plans

Sometimes things do not go your way no matter how accurate you are. You need to prepare a better contingency plan in order to stay safe. Coming up with a contingency plan requires good control over math. It helps you to analyze the bottom part of the situation. Ultimately, it presents different alternatives.

12. Determine the Cost of Products and Services

Figuring out the breakeven point is undoubtedly one of the trickiest parts. It is the most crucial part as well. You need to price your product in the right way to get the right amount of sales. So, an entrepreneur should know how to select the right price for his products. And math is his key.

13. Measure the Demand and Supply Relations

You should measure the amount of demand on the market and how much you can produce. You should also consider how much your competitors are producing in the same market. It helps you to identify market opportunities. It can only be done with the help of proper mathematical applications.

14. Identify the Best Source of Supply

There are some suppliers who offer supply at a lesser price. But, the transaction and the warehouse process might cost you even more. You want the right EOQ and the right supplier source to fill it. You can only do it when you know how to determine the EOQ. This requires the right knowledge over math.

15. Minimizing Additional Costs

There are several other costs associated with the business. Depreciation, interests and unaccountable expenses are a few of them. If you don’t keep track of their value and cost – you will not be able to determine the right amount of profit. The value of such items will be decreased without you even knowing it.

16. Accessing the Financial Fitness of the Organization

A company can only achieve maximum success when it is financially fit to carry out the projects. Sometimes, the cash flow and the assets do not reflect financial fitness. You need to consider the debt and the amount of equity as well. You need the help of math in order to determine financial fitness.

17. Stay Ahead in the Competition

When you are better with your calculations,  you can easily stay ahead of the competition. Because math never lies. You can use some of the best graphing calculators to make more precise calculations. They will increase your perfection and give you more certainty about your decisions.

18. Value and Insurance Balance

In this competitive and risky world – no one wants to lose their all. So, insurance is one of your most useful allies. But, what premium size should be the most accurate one? How do you determine that? You can only determine that properly by evaluating your company value. Your skills with math can guide you on your way.

Conclusion

You need to stop predicting and start articulating. This is your key if you want to be a successful entrepreneur. All great entrepreneurs in the world were good at math and it’s a common pattern among them. I hope this article clearly translates why math is so important.

So, if you are a bit behind on your mathematical chops – you can start right now. It’s not too late yet. I wish you all the best. CIAO.

Author Bio:

This article is contributed by Anthony. A true fan of reading books and comics and the one-eyed-king in the world of mathematical geekdom. Check out more of his works at GraphingCalcHub.com.