I even hear it from owners that have been in business for a while, but are struggling in their ownership of the business. Most of the time that happens because you are the chief operator of your business, you have the specific technical skill that got you into business in the first place, as well as wearing several other hats, but you don’t really understand what being a business owner and owning a successful business is all about.
The hat that you should be wearing most of the time, but aren’t is the CEO hat.
That one is put aside because struggling business owners like you claim not to have time to learn the business skills necessary in order to wear that hat.
The truth is, that until you learn the skills necessary in order to wear the CEO hat, you will always be working harder and on the wrong tasks in your small business than you should be.
One of the primary skills of the CEO of your small business in learning to read and understand the financial statements and what they mean and what information they are telling you about your small business.
How Do I Read Financial Statements?
First if you are a little unclear about what financial statements are, then you can check out a previous post with a video where I go into the details about what exactly business financial statements are.
And in another post I discussed why as a small business owner you absolutely need to care about financial statements no matter what size your business is.
If you think your business is too small to have to worry about financial statements, then you are caught in the “smallness” trap, and will be stuck struggling in your business.
If you take the time to learn how to read and understand the financial statements in your business, then you are on your way to ending the struggle and really understanding your business.
Once you understand what is really going on in your business, then you will be able to forecast what will happen when you make change X vs. change Y, and why you would even consider making a change in the first place.
If you are still wondering how do I read financial statements?. Or you want more details, then please let me know by posting a comment below or you can apply for a free How Do I Read Financial Statements session where I will work with you on the financial statements for your small business.
Have a Prosperous Day!