I would probably be amazed at how many business owners run their business without a good understanding of what their financial information is telling them. And unless you have someone who can explain how to read a P&L or how to understand a balance sheet, where can you go for help?
James Laube of RestaurantOwners.com is a good resource for understanding what your financials are telling you. As I mentioned in an earlier post, James spoke to a large group of restaurant owners at the Oklahoma Restaurant Assoc's TulsaFest. His two topics were "Food Cost Fitness" and "Profitable Financial Skills for Restaurant Operators".
While I did not make it to the first seminar, I found the second to be very interesting and the information presented in a way that was easy to understand. Regardless of what business you might be in, the topic of how to read a P&Ls and understand what it is telling you would be helpful to all business owneres.
Do you have percentages next to your dollar amounts for each expense item? Do you have someone you can go to to better undertand what your financial information is telling you?
