The "nuts and bolts" of a business and explore the key financial terms and tools used in startups and business.
Key financial business terms
Financial statements
Break even analysis
How to calculate a burn rate and why it is important
● Not keeping enough cash in bank
● Poor spending decisions
● Cash flow
● Unable to break-even
Key Terms
● Revenue
● Profit
● Asset
● Expenses
● Debt
3 Financial Statements
● Income Statement
● Balance Sheet
● Cash Flow Statement
Each of these statements provides different but complementary information about a
company’s financial health and performance. Together, they give a comprehensive view
of a business’s financial situation.
, Income Statement
● Profit & loss, Statement of Income
● Financial performance
● How much money a company makes over a period of time.
● Financial health of a company shows profit at different stages
Revenue
Number of units sold multiplied by the per unit selling price.
Example: One Month of Sales
● Sell 50 Skateboards
● $75 Unit Selling Price
GROSS Revenue = $3,750
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