Financial literacy is crucial for entrepreneurs to understand and manage financial pressures. Entrepreneurs need to be proficient in:
1. Reading Financial Statements: Understanding financial statements such as balance sheets, income statements, and cash flow statements to monitor the financial health of the business.
2. Budgeting: Creating and adhering to budgets to ensure spending aligns with the business plan.
3. Financial Analysis: Analyzing financial data to make informed decisions regarding investments, cost-cutting, and business expansion.