Wednesday, February 26, 2014

Have a heart healthy business

February is heart month. We wear red, we have heart healthy screenings, and we are reminded that heart disease is the leading cause of death among Americans.

During the month, we learn how to mitigate heart disease. While our bodies and our small businesses may not be an exact parallel, it makes for a good analogy.

Your small business is like your body. The heart of your small business is finance related. Most businesses fail because of lack of financial management - lack of capital.

Finance, generally speaking, pumps life in (or out of) your business. Your financial statements are like an EKG. It can help identify problems or underlying issues. While you should have a check-up on both your body and your business frequently, it's advantageous to at the least have an annual checkup.

But what good is your EKG if you don't know how to read it?

More from the ASBDC.

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