Are You Running a Time Bomb?

I recently encountered an entrepreneur who had secured nearly $1.5 million in funding. When approached about additional investment opportunities, he declined, convinced his $4.2 million contract would cover operations. On paper, his logic seemed sound—a 10% investment return with only $340,000 in annual expenses.

What didn’t he anticipate? 

Cash Flow Timing

With an 11% line of credit, new hires requiring email accounts, desks, and software, and payments coming in months later than expected, a cash crunch was imminent. Had he been able to read and interpret a cash flow statement, he would have seen the warning signs months earlier.

This isn’t an anomaly. According to CB Insights, 38% of startups fail because they run out of cash—not because their ideas weren’t viable, but because they couldn’t manage the money they had.

The painful truth? Most entrepreneurs—young and old—lack the fundamental financial skills necessary to sustain success. We’re living in an era where businesses can scale faster than ever before, yet many operators can’t even read the financial statements guiding their fate. That's not running your company, that's running a time bomb!

The Problem: We’ve Outsourced Business Education—That’s a Mistake

The biggest failure we’ve made as a society is outsourcing real business education to MBA programs. By the time people realize they need these skills, they’ve already made fatal mistakes.

Financial literacy shouldn’t start in grad school. It shouldn’t even wait until college. It should begin in 8th grade.

Imagine if today’s 13- to 25-year-olds graduated middle school knowing how to read a profit & loss statement, a balance sheet, and a cash flow statement—and could use Excel at an intermediate level.

That’s not just good for business—it’s good for the economy.

The Four Business Skills Every Entrepreneur Must Master

The gap between ambition and capability creates a perfect storm for business failure. If you’re running a company—or thinking of starting one—these four skills are non-negotiable.

1. Reading a Balance Sheet

A balance sheet is your company’s financial snapshot—showing assets, liabilities, and equity. If these terms sound foreign, you’re gambling, not running a business.

Kontrena Evans, CFO of one of the largest non-profits in the U.S., drives this point home:

"It can't be just the CFO or Finance Department that can read a balance sheet. Even program managers need it. This problem is worse in the non-profit world because everyone assumes it's someone else’s job."

If you don’t understand your balance sheet, you’re handing control of your business to whoever does. That's like watching the fuse burn with no control.

2. Understanding a Profit & Loss Statement (P&L)

One of the most alarming questions I ask founders: “Is your company profitable right now?”

The number who can’t answer is staggering.

Your P&L statement tracks revenue, costs, and profit over time. If you don’t know whether you’re actually making money, you’re not running a business—you’re guessing.

3. Mastering a Cash Flow Statement

Profitability does not equal liquidity.

Plenty of “profitable” companies collapse because they run out of cash. Your cash flow statement tracks the movement of money in and out of your business, revealing shortfalls before they become crises.

Consider a client of ours that was a furniture startup that grew revenue 300% in 2023. Despite booming sales, they collapsed because their largest clients had 90-day payment terms, while they had to pay suppliers within 30 days. They didn’t lack demand—they lacked cash. Of course, Market Bridge Advisors helped solved their problem, but for them it was painful and costly—for MarketBridge Advisors: highly profitable. 

This isn’t just a startup issue—it’s a universal problem across industries. If revenue timing doesn’t align with expense requirements, even strong companies can go under.

4. Using Excel at an Intermediate Level

If you can’t filter data, create basic financial models, or build a forecast in Excel, you’re a liability to your own business.

Sophisticated tools exist, but Excel remains the universal language of business analysis. If you ignore it, you’ll always be at the mercy of someone else’s numbers.

The Fix: Take Responsibility for Your Business Education

The truth? No one is going to teach you this.

Schools won’t. Most business courses focus on strategy, not execution. If you want to stay competitive, you need to take responsibility.

Best Courses to Get Started (Free & Paid):

• Best Free Accounting 101 Course: Khan Academy's "Accounting and Financial Statements" series
• Best Paid Accounting 101 Course: Harvard Business School Online's "Financial Accounting" course ($1,850)
• Best Free Excel Course: Microsoft's "Excel for Windows Training"
• Best Paid Excel Course: Wall Street Prep's "Excel Crash Course" ($39)

There’s no excuse—these resources exist. Take a weekend and level up.

Business Leaders: Step Up and Fix This Problem

This isn’t just an individual problem—it’s a national problem.

We’ve seen massive pushes for coding education in schools. Why? Because it’s a skill with real-world application.

But ask yourself: What’s more universally useful—knowing Python or knowing how to keep a business solvent?

If you’re a business leader looking for a high-impact way to give back, don’t just throw money at random causes—go into your local schools and push for mandatory financial literacy.

Financial education should start in 8th grade. If we can teach coding early, why not P&L statements and cash flow basics?

Conclusion: Stop Talking Big and Learn the Basics

Entrepreneurs love to think big. They dream of changing the world, scaling massive companies, making a fortune. But success isn’t about big ideas—it’s about proper execution.

And execution starts with knowing your numbers!

The harsh reality? If you can’t read a balance sheet, you don’t own a business—you own a time bomb.

Let us help you gain the insights you need to prosper!