Financial Statements

March 14, 2011 at 7:11 pm Leave a comment

The new workbook is posted under the members tab.  Here is a synopsis.

Your Profit & Loss tells you how much money you brought in, how much you paid for expenses and how much was left.

Your Balance Sheet tells you what you have or own in the business and how you paid for it.  Assets equals liabilities and equity.

Aged Receivable tells you the money owed to you for work done or sales made, by whom and for how long.

Each of your statements tells you specific information about your business.  The real value is in looking at your statements over time.

One of my favourite statements is the Profit & Loss by month.  You can see your year laid out.  You can see your income trends by season, you can see when you spend on advertising or repairs or staff.  You can see if anything has been missed – 11 phone payments instead of 12.

Look at statements from 2 different time periods: this past quarter and the one before or the same quarter for the previous year.

As you do, look to see how things have changed.  Is your revenue trending up or down?

How about your expenses?

Do you owe more or less money?

How much value do you have in Inventory and in Equipment?

How does your bank balance look?

If you have any questions I am happy to answer them here in the comment section or send me an email.

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Entry filed under: 1. Know Where You Are Going, 3. Do It. Tags: , , , .

Other Numbers of Business Keep Going

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The Three Success Factors

I have worked closely with 100’s of business owners and I have seen too many struggle. I have seen what works and what doesn't.

It takes 3 things to succeed:
1. Hard work - and I know you do that already.
2. Knowledge - domain knowledge: you've got that and continue to learn; and business knowledge: this is where everyone focuses and it's easy to find
3. Mindset - This is the killer app. This is what makes or breaks small business owners.

We work on Mindset here at the Business Owners Success Club: how you think about yourself and your business.

When you focus on a business that gives you what you need to live a Good Life and gives others what they need to solve a problem, everything else falls into place and you have a successful business.

Using that as a framework we work on one aspect of business every month. February is "Your Place in Your Community" month.

In March we will open the doors to our online community. Stay Tuned.

Sign up here to play along.

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