Jun
19
Success in a small Biz? Think like a big biz financially and like a neighbor operationally
ByI think you know the neighbor part. Be nice to people, get to know them, know what they like and want, adjust your offering to your community, contribute to the community.
The hard part is thinking like a big biz financially. What should you do?
Understand why a balance sheet is important. Until you understand how to keep an accurate balance sheet it will be difficult to use a balance sheet to make good financial decisions. Most small business owners are accounting averse but they shouldn’t be. A well prepared balance sheet done on an accrual basis is a forward looking tool. Are payables up? Cash down? Accounts receivable slow? How much cash can an owner pay himself and still have a cushion? All on a balance sheet.
For more details on a balance sheet start at:
Wiki Balance Sheet Information
Think financially like a big business and you will improve your small business.
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