Why Business Is Like A Boxing Match
Are you fighting with just one arm?
If you were a boxer, do you think you could win a fight with just one arm?
And just for an added challenge: it’s your non-dominant, weaker arm.
When Danny Williams squared off against Mark Porter in October 2000 for the Commonwealth belt, he certainly didn’t think he’d have to confront this question. But in the sixth round with just under three minutes left, Williams threw a right hook that dislocated his shoulder. You can watch the fight here, and at the 24 second mark, you’ll see the punch that pops Williams’ shoulder out of socket. It’s literally hanging limp at his side as Porter continues to pound him.
But here’s the crazy part: Williams’ corner didn’t throw in the towel! Instead, he kept fighting with his non-dominant arm, evading enough of Porter’s punches to stay in the fight.
Now, I don’t know about you, but my non-dominant arm is about as strong as a wet noodle (remember, I’m an accountant). Williams’s was certainly stronger than mine, but still that didn’t change the fact that he was in a professional boxing match using only one arm.
Anyone watching must have expected Porter to win the fight at that point. After all, his opponent was down an arm and couldn’t defend himself! And yet, with about a minute left in the round, Williams stepped into a left hook and knocked Porter to the ground. Porter got up, but Williams knocked him down again, winning by knockout — dislocated arm and all.
In many ways, being an entrepreneur is like being a boxer. Your competitors want to knock you out and will use whatever advantage they have to win. Every day you’re in the fight of your life. If you’re stepping into the ring with one working arm, what kind of odds do you give yourself to win? Sure, Williams did it, but he may be the only person in boxing history to do so.
Any day that you go up against your competitors without a clear understanding of your books is like fighting with one arm, hoping to connect with a left hook — the odds are not in your favor.
I think every entrepreneur knows this, and yet, I meet a lot of them who say to me, “I’m not getting the financial information I need to run my business.” Then they lower their voice and say, “I’m not actually sure what financial info I need — I just know I’m not getting it.”
These entrepreneurs are fighting one-handed and getting pounded by the competition as a result. They know they’re in danger of getting knocked out, but they don’t know how to get that other arm working again so they can improve their chances of winning the fight.
For other entrepreneurs, the minute the accountant or bookkeeper starts going over the company’s financial position, their eyes glaze over. They handed off their books to someone else — a family member, friend, or part-time bookkeeper — precisely because they don’t want to think about accounting. They simply want to turn in their receipts and run away.
Either way, this “one-armed approach” proves costly once the punches start flying. To give yourself a fighting chance, you’ve got to direct your accounting team to get you the information you need, when you need and, most importantly, in a format that works for you.
No accounting jargon, no technical reports. You don’t want to become an accountant to understand your numbers, and I don’t blame you. Luckily, you don’t have to.
When you get the information you need in a format that works for you, you’ll know where your business stands and the top issues you’re facing — which means you can start figuring out how to solve them. You’re still going to take some punches (this is business, after all), but when you use your numbers to your advantage, you can avoid ending up on the canvas.
To make sure you’re not stepping into the ring with one arm, ask yourself these questions:
- Do you know, at all times, the key financial issues facing your business, or are you shotgunning every problem that comes your way (and likely spinning your wheels during the process)?
- Are you clear on what information you really need in order to make the best decisions for your business?
- Is the information you get from your accounting team intuitive and easy to understand, or a stack of complex reports full of accounting jargon?
To learn how to get your business’ financial information in a format that works for you, go to Entreprenumbers.com.
