If there is anything a business owner should know is the hidden things in a company’s balance sheet.
A really good way to get to know and learn about a company is to review their balance sheet. Here’s what you can find:
- Inventory flow and status
- Sales and cost of goods sold
- Negative liabilities
- Assets and negative receivables
By looking at the balance sheet along with the P/L (profit and loss statement), your impression of the company’s finances will come into sharper focus.
Are You Prepared for a Crisis
Are you prepared for a crisis?
Is your company ready for a crisis or a surprise?
When you establish your company, you need to be continually thinking about how the company is going to grow and evolve. Several things to think about:
- A buy-sell agreement between principals and partners in the company.
- Continual review of the value of the company.
- A succession plan for the company to help deal with death and retirement.
- Financial plans in case of equipment failures or other losses.
Being prepared is being re-paired!