Is Your business Overweight? The way to Decide the Monetary Wellness of one’s Business enterprise
It is widespread for compact small business owners to measure their financial health determined by their revenue statement or bank account balance and deem their small business “fit” when the bottom line appears very good. To reveal why this approach might be deceptive, let’s apply a dieting metaphor.
Only looking at the bottom line is the equivalent of “sucking it in” when you appear within the mirror. Confident, it looks like you have lost some weight, but what takes place after you exhale? You might appear skinny for a moment, but that version on the circumstance isn’t precise.
In terms of your business’ overall health, the balance sheet is definitely the “real” you. Believe in the earnings statement (also named the profit and loss statement) as your eating plan log. It tells you how properly you did within a specific time period—last week, last month, or last quarter. …
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