Tuesday, November 03, 2009
OK, so here's a thing. A Balance sheet is a simple piece of paper. It's a hard number. Now there may be cash flow estimates on it (or near it), and some numbers may be guesses, and it's more important to be accurate than precise. But your Balance Sheet is not an emotion. It's not something which "shouldn't be written down" or only discussed in hushed whispers because of the way you feel about it.
What are your assets? What are your debts? Then gimme some kind of cash flow estimate. That's all. If you have a business worth less than $250,000 you can do these numbers in your head. If you own a lot of property or (even worse) derivatives then you might have to get creative. But if you have a lease, a couple lights and some black curtain and you can't tell me what the balance sheet says? Give me a break.