elevateMN

Elevate Educational Series Ep. 2: Know Your Financials!

Episode Summary

Understanding Your Business Financials In this episode, Sarah and Michelle dive into the financial essentials of starting and running a successful business. They discuss the importance of understanding financials, creating a startup budget, making projections, and managing ongoing finances through balance sheets and profit and loss (P&L) statements.

Episode Notes

Hosts:

Key Topics Discussed:

  1. Startup Budget - Identifying initial costs such as equipment, space, and marketing. Tips on researching and making informed financial decisions.
  2. Financial Projections - Importance of forecasting and the fluidity of projections. Building working capital and preparing for unexpected expenses.
  3. Balance Sheets - Understanding assets, liabilities, and overall financial health. Assessing whether the business is financially stable.
  4. Profit and Loss (P&L) Statements - Tracking monthly revenue and expenses, comparing projections to actual results, and identifying financial trends.
  5. Cash Flow Management - Differentiating between monthly cash flow and ending cash balance. Importance of having a financial cushion.
  6. Communication with Financial Advisors - Building a trusted relationship with accountants or bookkeepers. Knowing when and how to ask questions about your financials.

Summary: In this episode of the Elevate Podcast, Sarah and Michelle explore the critical aspects of business financials. They emphasize the importance of creating a detailed startup budget and making accurate financial projections. The discussion includes understanding balance sheets and P&L statements, managing cash flow, and effectively communicating with financial advisors. This episode is packed with practical advice for new and existing business owners to ensure financial stability and success.

Hosts: Sarah and Michelle
Production: Economic Development Commission, Kandiyohi County; Mid-Minnesota Development Commission

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