- Restaurant industry mogul and Houston Rockets' owner Tilman Fertitta says that staying on top of financial figures including revenue, cost of sales, and profitability is the biggest driver of success.
- If you don't know your numbers, you won't succeed, Fertitta says.
- Budgeting is a key financial skill that can put you in touch with your numbers.
Tilman Fertitta knows a thing or two about business. As the CEO of Landry's, a privately owned hospitality corporation with over 600 properties, and owner of the NBA's Houston Rockets, it is fair to say Fertitta is a successful businessman.
For young entrepreneurs seeking their own success, Feritta has one piece of advice: Know your numbers. He says not knowing your numbers is the biggest mistake that young business owners make.
"You've got to understand your cost of sales, understand your revenue and you understand your profits. If you don't know your numbers you'll never be successful," Fertitta recently said in an interview with CNBC. He added that not knowing your numbers can affect your home life as well.
Lack of information about income and expenses causes financial anxiety and Fertitta's advice applies to everybody.
Sixty-three percent of millennials report that they are financially anxious and 55% feel stressed.
A simple answer to this issue could be to create a personal budget, and stick to it.
Research from SlickDeals.net reveals that 74% of people say they have a budget – but 79% of those people don't stick to it!
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According to the survey, the top list of categories where respondents overspent was not surprising — online shopping, food and subscription services.
Starting a budget can be daunting and keeping track of that budget can be downright horrifying, but there are steps you can take to make it easier.
Start by using a budgeting app. Apps like Mint are free and provide categorical spending each month. YouNeedABudget is another that can help you start budgeting, but it will cost you after its 34-day free trial.
Others recommend an old-fashioned method — the spreadsheet. Douglas Boneparth, president of Bone Fide Wealth, suggests looking at three to six months of spending and creating your own budget in a spreadsheet. While this exercise is tedious it will give you an intimate knowledge of your spending habits.
Knowing your numbers is key to running any business but perhaps, more importantly, it is the key to peace of mind.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.