Archive for Financial Responsibility
Jul
09
Buying a Biz? Don’t assume bad records = bad biz!
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Many people looking at buying a biz are often surprised at the condition of the records of many small businesses. The buyers may be used to seeing corp financial data sliced and diced 20 ways.
- When looking at buying a biz there are several kinds of bizs:
- Bad biz with bad records
- Bad biz with good records
- Good biz with bad records
- Good biz with good records
Do your homework and due diligence, the bargain could be in the good biz with bad records.
Jun
19
I 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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