Finance is responsible for the availability of funds. Survival and growth require funds. Remember profit comes after debt service and the wages you pay yourself.
• ENTITY• STATEMENTS• BUDGET• CASHFLOW
FINANCEApplication of Funds
Choose your form of business and the people you involve carefully. Mistakes are easy to make and hard to correct.
EntityAdvantageous Form of Business
1. Decide on how you want to handle entity demands.
2. Rate the requirements of each type of entity.
3. Select the entity that best supports your objectives.
Read and use them. Don't just receive them. The most expensive statements are the ones you don't use.
1. Maintain a complete set of statements.
2. Review and compare statements.
3. Plan the future knowing the past.
StatementsHistorical Record of Profitability
Plan ahead so you don't get behind. A budget is a road map to profit. Without one you may get lost.
1. Develop projections from past numbers.
2. Live within your budget or know the reason why.
3. Adjust accordingly.
BudgetHistorical Record of Profitability
You can't always be right. Track the flow of your money, understand mistakes, adjust accordingly.
1. Analyze cashflow.
2. Review income sources and use of funds and credit.
3. Develop funding sources in advance.
CashflowTimely Use of Money
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