Posted by Helen on Sep 22, 2020 in Business, Marketing, Careers, & Nonprofit Administration
How to Start and Run a Small Business without Losing Your Shirt
A little luck can’t hurt when starting and running a successful small business. But luck can’t get you to the finish line, unless you have some business start-up basics.
Cash Flow vs Net Income
Do you know the difference? It is critically important to understand the basic principles of Net Income and Cash Flow. Each gives you different information and knowing difference and how to use these calculations can up the probability your startup succeeding.
Cash Flow Statement
The bottom line of the Cash Flow Statement is the cash position of the business for that period of time. In other words, it tells you how much cash you have in the bank. Everything you spend for your business will be deducted from your cash flow statement.
Net Income Statement
The bottom line of a Profit & Loss Statement is Net Income. This is profit, not cash. This is the information that you’ll ultimately use when filing your income taxes. There are some expenditures that you may make for your business that you cannot by law deduct on your
When to Use What
The Income Statement can tell you a number of things about the health of your business. It can help guide you in making big picture business decisions. However, it will not tell you how much cash you have on hand in the business account at the bank. Manage and operate the business from the Cash Flow Statement. Knowing this tidbit of business start-up basics will keep you out of a lot of trouble.
Get the Business Start-up Basics from this Practical CFU class
How to Start and Run a Business without “Losing Your Shirt” is a practical, information-packed class that will give you an orientation to the business start-up basics.
Instructor Tony Uva has taught marketing & business for over 25 years at Regis University, the University of Phoenix, & entrepreneurial studies courses at Johnson and Wales University. He also owned Allegra’s Pizza, in Park Hill- Denver, for 10 years and now owns and operates a pizza food truck. Tony is a volunteer at SCORE, Service Corps of Retired Executives, where he mentors new and existing small business owners and conducts workshops.
You will learn more about this concept and other practical ways to run a business by taking this class.