Good Monday morning and welcome to my weekly articles on business building. Understanding your business financial statements is essential for the success and growth of your business. Financial statements provide a snapshot of your business's financial health and give you insight into how well your business is performing. They also help you to make informed decisions about your business. There are several key financial statements that every business owner should understand, including the balance sheet, income statement, and cash flow statement. In this article we review these and discuss what you can use each for in your business.
Most owners get one chance to get it right and being ill prepared should not be an option, yet most owners cannot sell the business they built (only 1 in 10 are successful) because they did not build a salable asset. If you must sell your business to fund your future lifestyle, ask yourself whether you are prepared or not, and then identify what you need to do to get to where you need to be.