Do you run your business based on passion? Do you believe that, however tough things get, you can always pull through with hard work and dedication?
Rhondalynn Korolak, author of On The Shoulders of Giants and Financial Foreplay, says that’s the problem with many company owners. These are the people that hit cash flow problems, the killer symptom for most failed small businesses.
The solution, says Rhondalynn, is to learn to understand your balance sheet. The figures don’t lie. Often how you run your business is influenced by your bravado. Other times it could be driven by what else is going on in your life. Understanding the financials becomes the roadmap that will keeps your business on track, no matter what happens.
So, if you want to sabotage your business, it’s easy — ignore the balance sheet.