- Understand the importance of preparing a financial plan.
- Describe how to prepare financial statements and use them to manage the small business
- Create projected financial statements.
- Understand the basic financial statements through ratio analysis.
- Explain how to interpret financial ratios
- Conduct a break-even analysis for a small company.
- Explain the importance of cash management to the success of the small business.
- Differentiate between cash and profits.
- Understand the five steps in creating a cash budget and use them to build a cash budget.
- Describe fundamental principles involved in managing the “Big Three” of cash management: accounts receivable, accounts payable, and inventory.
- Explain how bootstrapping can help a small business avoid a cash crunch.
