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Digg it UP - Reading Your Financial Statements: What Every Entrepreneur Must Know
The trade show floor is full of different types of people with different agendas. Some people have specific goals for attending the show; others do not. As an exhibitor your observation and questioning skills will be your key to determining who may be a viable sales prospect. Familiarize yourself with the various visitor types likely to frequent the tradeshow floor. 1. Definites. If you have done a thorough job of preshow marketing, definite prospects and customers will visit your booth.
With the invention of the internet, email, blogs and chat rooms many companies wrongly assume they no longer need a business card. However, if you have ever been stuck in the awkward position of meeting a client for the first time and having to scribble your business name on a restaurant napkin or worse yet a torn piece of paper you will know the importance of business cards. You see websites, company blogs and all the technology in the world is great but it does not help with face to face networking. This is the type of networking you should be doing constantly if you
Knowing how to do this is an essential skill not just for entrepreneurs but for everyone. However, for the entrepreneur having this skill can mean the difference between having a thriving business that continues to thrive and winding up in bankruptcy. The annals of the bankruptcy courts are strewn with cases of entrepreneurs who entrusted their accounting to others and, not knowing how to read the financial statements of their own businesses, were surprised when they found that the business was ultimately unsustainable. The purpose of this article is to help prevent this from happening to you--and to arm you with the skills you need to structure your business to your benefit from the outset.
Your Two Major Financial Statements
There are two major financial statements that every entrepreneur should know how to read and (ideally) prepare or have prepared in their financial software (we recommend QuickBooks):
The Income Statement
The Income Statement (also known as the P&L or Profit and Loss Statement) offers a dynamic picture of the ebb and flow of your finances. Briefly, income statement shows first: A. Your various sources of income Then subtracts from that, B. Your expenses To give you the net result: Net Profit or Loss Typically, it is the result shown on this statement that is the basis for your taxation by state and federa
Last night my wife was helping my 12 year old learn some new things when my daughter and I walked in playing and giggling. Once we stopped in respect for them, I noticed he was having trouble concentrating because the television was on. After I suggested he turn it off, they made great progress very quickly.We all have done it, whether we are parents or not. We’ve encouraged someone to remove a distraction so they could focus on the task, conversation or subject at hand.If you wear corrective lenses of any kind and go for your annual vision check, you know w
Knowing how to do this is an essential skill not just for entrepreneurs but for everyone. However, for the entrepreneur having this skill can mean the difference between having a thriving business that continues to thrive and winding up in bankruptcy. The annals of the bankruptcy courts are strewn with cases of entrepreneurs who entrusted their accounting to others and, not knowing how to read the financial statements of their own businesses, were surprised when they found that the business was ultimately unsustainable. The purpose of this article is to help prevent this from happening to you--and to arm you with the skills you need to structure your business to your benefit from the outset.
Your Two Major Financial Statements
There are two major financial statements that every entrepreneur should know how to read and (ideally) prepare or have prepared in their financial software (we recommend QuickBooks):
The Income Statement
The Income Statement (also known as the P&L or Profit and Loss Statement) offers a dynamic picture of the ebb and flow of your finances. Briefly, income statement shows first: A. Your various sources of income Then subtracts from that, B. Your expenses To give you the net result: Net Profit or Loss Typically, it is the result shown on this statement that is the basis for your taxation by state and feder
Recently in an interview, Aaron Potts asked me about success. Immediately I thought of success as looking forward to Mondays. We are a society of "weekenders." One of the most popular catch phrases in the U.S. is "Thank God its Friday." I refer to this as the Friday-Generation syndrome. We live for the weekends and I have to wonder why? I love my Mondays. They exhilarate me! I think it really boils down to what we do for a living and how much we enjoy what we do. I remember Deepak Chopra once saying that most heart attacks occur at 9 am on Monday mornings. I don't think t
Your Two Major Financial Statements
There are two major financial statements that every entrepreneur should know how to read and (ideally) prepare or have prepared in their financial software (we recommend QuickBooks):
The Income Statement
The Income Statement (also known as the P&L or Profit and Loss Statement) offers a dynamic picture of the ebb and flow of your finances. Briefly, income statement shows first: A. Your various sources of income Then subtracts from that, B. Your expenses To give you the net result: Net Profit or Loss Typically, it is the result shown on this statement that is the basis for your taxation by state and feder
If you visit MySpace and do some browsing then the question will almost answer itself. Basically, you need to create a profile and then invite others to be your friends. This can be a because after you have invited 40 you will be required to enter in a CAPTCHA to keep on going. There are several marketing guides out there that tell you of ways to accelerate this.The reason you want to enlarge your network of friends is because then you will be able to post bulletins that all the people in your network will see. Besides bulletins you can send private messages or jus
Your Two Major Financial Statements
There are two major financial statements that every entrepreneur should know how to read and (ideally) prepare or have prepared in their financial software (we recommend QuickBooks):
The Income Statement
The Income Statement (also known as the P&L or Profit and Loss Statement) offers a dynamic picture of the ebb and flow of your finances. Briefly, income statement shows first: A. Your various sources of income Then subtracts from that, B. Your expenses To give you the net result: Net Profit or Loss Typically, it is the result shown on this statement that is the basis for your taxation by state and feder
There are lots and lots of specialty sites out there on the Net and I’m talking about job sites. You can find sites for part-time workers, office workers, team workers, temporary and contract workers. You can also go into recruitment sites and enlist their support and help.Dealing with the recruitment site. Firstly you need to no that they usually charge fees for their service. However, it can reduce your headaches and time by using a recruitment service. There are a number of recruitment services out there. Everything for multi-national companies to some local rec
The Balance Sheet
Offers you a snapshot of cumulative results of your financial activities. It is made up of two columns:
On the left side you have your Assets
On the right are listed your Liabilities and Owners/Shareholders Equity (or ownership in the business). The two columns must be in balance, which is why this is called a Balance Sheet.
Assets=Liabilities + Equity
It's really quite logical how the Income Statement and Balance Sheet relate to one another.
If you have to use current or long-term assets to pay ongoing expenses during the current year, at the end of the year, the amount of your assets will be reduced by the amount of net loss. On the right hand side, your Equity has gone down too. If you borrowed, say $10,000 to pay current operating expenses, at year end, your assets remain the same, but your liabilities have increased by $10,000, lowering your net Equity or ownership in the company by that same $10,000.
It doesn't take a rocket scientist to figure out that if you continue on this path, you will quickly be in a very painful situation, because Liabilities carry their own cost. The cost of borrowing money is Interest, and if you are fortunate enough to borrow at only 10% interest (on unsecur
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