Manage your small business successfully with these finance essentials from accounting professors Jim and Kay Stice.
- Hi, I'm Jim Stice. I'm a professor of accounting at Brigham Young University. This is by brother, Kay. - I'm also a professor of accounting at Brigham Young University. - As accounting professors we teach financial analysis, cash flow projections, product costing, and cash management. - All of these topics are important to the management of a small business. In fact, all of them highlight ways in which small business owners put their businesses at risk. - In this course we will explore five characteristics of small businesses that make them more likely to fail. - [Kay] Those five characteristics are insufficient capital, poor cash management, poor record keeping and controls, improper product pricing, and uncontrolled growth.
- Now, before taking this Financial Essentials for Small Business course, you might consider taking our Accounting Fundamentals, our Finance Fundamentals, or our Income Tax Fundamentals courses. Among other things, those courses provide a more comprehensive overview of business in general. - With that said, we have designed this Financial Essentials for Small Business course to be self-contained, and we carefully explain any terminology that we use. - In short, this is an introductory course with no prior knowledge necessary. - The fact is that the vast majority of small businesses fail.
- And with those business failures go the life savings and the dreams of the person who started the business. Join us to learn about the five characteristics to avoid in order to increase the likelihood that your small business will succeed.
- Describe the most common reason small businesses fail.
- Identify two reasons why your business plan needs to budget cash inflows and outflows for the first six months of your business’s operation.
- Write the formula to forecast cash flow for the first four months of your small business.
- Explain the first step you should take if your new small business is not making the profit you anticipated.
- Identify the most important thing to keep in mind if you are considering faster growth for your small business.