There have been a lot of companies going down the tubes lately. Or, they’re asking for big bail-outs to try to keep afloat. Did this just all happen overnight? Or were there signs that trouble was coming? And if there were signs, what’s next?
The secret is hidden inside the financial statements. We have to assume that the financial statements are truthful and that the CPA firm assigned to audit it, did their job, but let’s assume all that. Are there companies out there that look sketchy? Could you spot what went wrong?
That’s just one of the things that we’re going to go through at “Understanding Financial Statements for Everyday People”, my 3 hour seminar in San Diego on February 21, 2009. There are still a few seats left if you act now. Understanding Financial Statements
One of the companies that we’re going to examine at the seminar is GM. It was interesting to watch the past years. And to see that in 2007, the financial markets collapsed. GM had been running losses for years and been able to borrow their way out of the losses. You could see the handwriting on the wall as far back as 2005. The question was really “Why didn’t anyone else see this?” Then when the financial markets collapsed, a domino reaction occurred within the financial statements. The amazing thing is that everything that happened was predicted a year ago!
When you learn how to read the 3 financial statements, how to pick the danger signs of a collapsing asset/liability healthy ratio, how to spot where there is likely theft going on in your company and the 6 month warning signs of your company, you can sleep a lot better at night. That’s because you have a company that is solid and that can survive downturns and upturns. Your business can thrive in good times and in bad times.
Is it because your business is that much better? No, it’s because YOU are that much smarter.
I hope you can grab one of these last few seats. This is probably the single most important skill that a business owner can have.