Last night, I led a group of amazing guest panelists through a discussion of the highs and lows of financial management for a group of entrepreneurs hand-picked by the regional Small Business Association office based in Philadelphia.
During the session, we had two entrepreneurs volunteer for “Hot Seat” evaluations, where they shared their current financials with the expert panelists and then engaged in a very enlightening discussion as the experts reviewed and questioned each entrepreneur.
In the 3-hour session, the top five topics that received the most interest and attention were: 1) Clearly understanding the need to review and understand basic financial reports on a periodic basis (monthly, if not weekly). 2) How a financial professional reviews a P/L statement and balance sheet and cash flow statement to quickly assess whether a business is healthy or not. 3) How a bank or other lending institution will preform a review to see if a business is credit-worthy. 4) How the structure of a business should be apparent in the balance sheet (outstanding shares, etc.). 5) How your P/L and balance sheet work together to lead the business compared to how the cash flow statement and budget work to manage the business.
Joining me on the panel were:
- Carmen Adames, owner of Adames Professional Services, minority/women owned certified business
- Jovan Goldstein, Principal, JT Goldstein, LLC, specializing in privately owned professional service businesses
- Dad Sossaman, Sr, Vice President of Government Guaranteed Lending, Continental Bank, one of the top 100 SBA lenders nationwide
Thanks to my amazing expert panel guests as well as all the entrepreneurs who participated.