What do the Numbers Mean?

What do the Numbers Mean?


What do the Numbers Mean?

Going into business may be easy but understanding why your business is profitable or unprofitable requires some education and knowledge.  This knowledge allows the entrepreneur to make businesses decisions with more understanding that not.  The financial statements provide information to help the entrepreneur determine if the business is profitable and evaluate if there needs to be a change in the business policies and procedures.

Good Luck in your Future Venture

Numbers are important. They tell a story about the company.  Numbers give the entrepreneur the information it needs to make business decisions.  By understand what the numbers mean, the management can evaluate if they are meeting their expectations.  Some believe that if there is enough cash in the bank, they are making money.  How wrong they are!.  Their are many reasons why the company may have cash in the bank and be losing money.  This lesson provides the user with:

  • What financial statements are important?
  • What do the financial statements mea?
  • An illustration and comparison of the different financials
  • Understanding the different types of costs (fixed and variable) and how they play a role in evaluating profitability
  • What is cash flow and how it differs from income (profit & loss) statement
  • What is the value of the balance sheet
  • Inventory management
  • How pricing can affect profits
  • How much business is necessary to cover all the costs and make a profit (break-even analysis)

At the end of this lesson, the entrepreneur will have the tools to better learn the financial position of the business

Be Proactive! Anticipate!

Be Prepared