Friday, July 8, 2011

Taking a Hands-On Approach to Financial Basics

Whether building a business from scratch or taking over an existing enterprise, understanding financial information is crucial to the development process of any small business. According to a recent article by Businessweek, entrepreneurs often take the steps to becoming financial literate only after it’s too late.

Bill Hettinger, co-author of the book Finance Without Fear, states: “We find that people wait until they have some external reason to do so, like when they need to go to the bank for a loan, or they need a business plan, or there's some sort of shock to the system.”

By taking a hands-on approach (sooner rather than later) to understanding what your figures mean, you’ll be able to plan more accordingly and avoid future headaches.