TC: Checking Economic Conditions

We hear a lot about the economic situation in our country as well as the world. While they may cause a lot of stress in our lives, in my opinion, they really don’t count. As small business owners you can’t do a lot to change the situation.

There is however, one economic condition that you have a lot of control over and that is your own. Your challenge this week to set up a simple self-evaluation of your business’s economic condition which you should examine at least twice a year, quarterly would be even better.

As a small business the condition of your business is closely related to your own personal economic condition. Thus, both have to be constantly examined. A complete chart will be available in two weeks on BizQuack under the Tuesday Challenge button which will include both your personal and business numbers. These will help you gage your own economic condition.

For your challenge fill in the following numbers and then go to the new self-evaluation chart next week and complete the process for both your business and personal financial indicators.

• Cash in your checking account:
• Cash in your business saving account:
• Amount of $ in your business reserve account:
• Gross Revenue for this period:
• Forecasted Revenue for this period:
• Existing Debt: (not counting re-occurring debt used to sustain the business.)

This simple system does not look at receivables, only collected revenue. Cash is king in the world of small business ownership, and being able to track progress will help you determine what areas of your business need attention.

TAKE THE CHALLENGE!