This will be be the driest and most boring module in this set. Regardless – if you own a business, and wish to keep your business, as well as make a profit, you need to know this stuff, so roll up your sleeves and pay attention to the A-B-C-D-E-F of running a business.
Topic A – Accounting
You don’t have to be an accountant – you just have to keep good records of every business transaction.
Topic B – Budgets
Would you drive a car blindfolded? We hope not, so why would you attempt to run a business without a budget? But for a first time business owner, where do you start?
Topic C – Cash Flows
Using the same analogy as for Budgets – would get in a car and drive without knowing where you were going. It could be fun for a day. And running a business without a Cash Flow could be fun – but not for long! Again, where do you start?
Topic D – Debts, Loans and Leases
Most North Americans, and business people in particular, are obsessed with debts. There a good debts and bad debts.
Topic E – Expense Ratios
North American businesses are obsessed with Sales, when they should be looking at their Expense Ratios.
Topic F – Financial Statements
You will need Financial Statements to file your business taxes. To the uninitiated, they are a page of numbers, so we’ll make it simple to understand.
These 6 topics may sound boring and unnecessary, but in all walks of life there are rules, customs, and traditions. They have been crafted and molded over time from countless years of experience. They are not there to limit you or confine you. They are there to make your life easier. In all cultures, these rules have been past down from the elders. You have a choice – learn them or perish. There are plenty of ways to show your individuality, but listen to these words of the wise – “If it ain’t broken, don’t fix it” Believe it or not – these topics are there to help you.
Bonus Topic – The Mystery Accounts
These accounts are only important if the business is incorporated, but we’ll explain them, and what they are for.