Six basic skills
basic business tools
talk to your banker
Find out why your banker can be a valuable business advisor.
Most banks have employees who specialize in helping business customers. You can ask them about specific products and services. But you can also talk to them about your business — what you’ve accomplished, and what you’re trying to achieve. Your business banker can be a real asset — a trusted advisor who can help you save time and money, take advantage of new opportunities, and reach your business goals.
Most business bankers have worked with dozens, if not hundreds, of small businesses similar to yours. Since you’re a customer of the bank, the bank wants you to succeed. The more they know about you and your business, the better they can advise and assist you.
how the sba can help you
About the SBA
The U.S. Small Business Administration (SBA) is an independent agency of the federal government. It’s dedicated to helping people get in business, stay in business, and make their businesses successful and growing. The SBA offers all kinds of resources to help you start, finance and manage your business, and find new business opportunities. It can help you write a business plan, obtain start-up capital, purchase real estate, and much more. The SBA has offices throughout the United States to assist you. To learn more about the SBA, visit their website.
The copy machine you bought increases what your business is worth. That makes it an asset.
The money you owe is called a liability.
The products, or merchandise, that you offer for sale to your customers is called inventory.
A manufacturer’s expense for materials they use to make products is called cost of goods sold.
Expenses that are the same amount every month, such as rent or equipment leases, are called fixed costs.
Expenses that may change from month to month, such as electricity or taxes, are variable costs.
The amount of monthly fixed and variable costs required to be open for business is known as overhead.
Marketing is everything a business does to both gain and keep customers.
The minimum amount of money a business must bring in to pay all expenses is its break–even point.
If your business has positive gain after paying all expenses, you earned a profit.
Tracking the money in your business is called “keeping the books,” accounting or bookkeeping.
All of your monthly bills and expenses are called your payables.
The money your customers owe you is called your receivables.
Money constantly moves in and out of a business This is known as cash flow.
to succeed in business
- Keep your overhead as low as you can.
- Know your customers and put them first.
- Keep good records to make smarter decisions; you can’t manage what you don’t measure.