As business owners, you want to understand the financial implications of all decisions you make throughout your business. You may want to consider economic trade-offs that get you ahead faster, for example. The best way to do it is through financial analysis tools. These are the analytical techniques to evaluate and interpret financial statements. Financial …
Reviewing your business numbers means spending time on three financial statements: The P&L or income statement The balance sheet The cash flow statement The three documents enable you to have a complete picture of your business’s financial health and standing. While reviewing the P&L and balance sheet is straightforward, the cash flow analysis can be …
As an HVAC contractor, strategic financial analysis is one of the vital tools at your disposal. It allows you to make informed decisions about where to allocate your resources and how to grow your business. Moreover, an excellent financial planning strategy reveals bottlenecks and opportunities you can use to propel your business forward. There are …
Positive business cash flow is the lifeforce of any company. However, cash flow problems are rampant among businesses across the globe, including the HVAC industry. In fact, Jessie Hagen says 8 out of 10 businesses fail within 5 years because of poor cash flow management. Although a general insight, it’s possible that the HVAC business …
As an HVAC contractor, ever wonder what a P&L statement is really telling you? You’re not alone. In fact, many small business owners are uncomfortable with this financial statement. A P&L statement is also known as an income statement. It is a key financial document that shows your business’s revenue, expenses, and profit over a …
As a business owner, one of the most important skills is reading a financial statement. This is an equally essential tool that investors have to guide their investing endeavors. Financial statements are documents used to track the financial health of a business. Moreover, it will guide business owners in making vital decisions like where to …
Financial statements is a vital pillar in understanding the health of your business’s finances. It’s important for entrepreneurs to know how to build financial statements because it provides insight into two critical aspects: They display the historical financial landscape of your business to make decisions in the present They help forecast the future growth of …
The endgame of every business is profit. Profitability is measured at 3 key junctures: topline revenue, gross profit, and net profit. But what exactly are the factors that play in calculating profitability? The cost of goods sold (or COGS) is one of the most fundamental metrics for residential home service businesses. Understanding what it is …
Profitable growth is the lifeblood of any business. Without it, businesses will eventually succumb to the inevitable forces of competition and market saturation. Achieving exponential profit growth requires identifying and focusing on those areas of your business that have the greatest impact potential. In this article, we’ll go over everything you need to know about …
What kind of culture are you cultivating for your employees? Organizational culture can have a significant impact on employee productivity and motivation. Creating a positive work culture can lead to higher talent retention and employee satisfaction. Oftentimes, when morale is low, so are sales and productivity. Without a sturdy foundation, a house won’t be able …
