To measure the achievement of seven

Your business financially??

Something great! Answer, OK or awful! Not you alone, do not worry if not after the conviction. A simple question, but there many ways to answer it,.

To answer seven questions and 7 ways to measure the performance of your business answer question below, place

Your financial statements from

1. Income

"How much money we like? "Answer is P & l (profit and loss statement also known as profit and loss statement) to find. Income producing companies (income) consume how much wealth description or (loss) for a period of time. Interests of the other words is the revenue, net income, and the bottom line. You must include the owner's compensation is the measurement of income. More profit is good.

(2) Cash flows

At the end of the start time of the cash difference between how much certain time period ends. For more information and positive cash flow is good. It is not cash flow, obviously the same interest as. A simple (you have to get it), and it is an elusive concept. Describes the many differences between the articles on the Web, but put it in a nutshell: the end positive or negative adjustment to the balance sheet, cash flow net income that start with P & L, and things happen.

3. Strength of the balance sheet

(What you own to your company) (what is owed to your company) less liabilities than a strong balance sheet with more assets. A strong balance sheet is easier to borrow money on survival safety cushion to sell it when giving your company, your company means to run a higher price. Don't have to worry about so strong balance sheet that is possible, but most entrepreneurs.

Items of business not stated in the financial statement

4. Risk

It is risky business. May be incurred to pay is not the accused have defaulted on bank loans or your company might be. Risk is sometimes defined as probability results. Could lead to something that will be multiplied by the damage. Risk and profit is good to get the same dollars. Or more profit and risk of the same amount to get good. Therefore, the risk / return relationship.

We learned during the depression of United States financial institutions a huge breakdown 2008 - 2010 too risk properly, price is not good.

5. Invest time owners

Of how many hours a day, week, month, or has your business per year. Investing is a good thing to get the same profit of $ 1.

3 Hotel reviews

What is your business in a fair market value (FMV)? Fall lift it or do I? Created by has resale value for owners of corporate wealth in addition to providing current income. (Whole or part) of is better than high business reputation comes time to sell your business.

Personal and financial

7. Net assets of the business owner

The purpose of a business creates wealth of its owner. Owners have a substantial investment of retirement accounts, real estate, and other holdings? Owner's net worth is increasing as a result of her business with the money? Financial performance of the small business owner's personal balance sheets to understand completely.

Seven major has 7 ways to improve performance.

Analyze how your company is doing financially, why bother? Look at the monthly numbers, simple act is likely to get better numbers. You'll make more money by upstream different are trafficked through the decision to start so just pay attention to numbers are. Those decisions the flow downstream better financial results than to generate and put more money in your pocket.

Chief Financial Officer David Stern. My interest in small business, started in 1986. Finishing degree in economics at UC Berkeley I had got a part-time local reuse and recycling company. Learned to sell low purchases, taking care of my customers and I believe there is work.

In this and other jobs, I gravitated towards the number full-time it so decided. In 1997, as a small business financial consultants set up shop, and I've been doing ever since.

A couple notes I rent, CFO of approaches:

1 The education. Helping small business owners, and better financial management in books or the controller. Maybe the financial statement analysis, pricing or maybe the bookkeeper / controller to learn best practices for improving cash flow.
2. Integration. Know that the numbers only part of the story. In addition to analyzing company financials closely, I will ask you about the business goals, market strategy, and operations. It is only one of the pillars of the three finance companies. Wants to work in sales and operations, concert too.

100000 Dollar businesses from start. Helps entrepreneurs succeed since 1997. http://www. DavidSternCFO.com