Small Business Financial Management Kit for Dummies Day 1

Book Two, Chapter 2
The controller is the profit and loss scorekeeper for your business. 

Next up.  Learning how to read, interpret and write Profit and Loss Statements

We need a business model.  We currently don't have one as I am just learning what that really truly is. 

This book talks about a business model for a business that sells goods or merchandise.  I quote:

    "Your basic business model is to sell a volume of products at adequate markups over their cost to cover operating expenses so that you generate a satisfactory profit after your interest and income tax expenses. "

Ok we are more of a service based company.  Really either of the trucking companies so here goes.  Our basic business model is to transport goods at a rate adequate to cover the cost of transportation and other operating expenses so that we generate a satisfactory profit after our interest and income tax expenses. 

Note to self.  Look up and read the first age of the annual federal income tax re
turn for the businesses that have been going for more than 4 months.  as this reports the p&L from that business as reported to the IRS


Operating expenses include salaries, and wages, and make up the lion's share of the operation expenses.  As well we need to see advertising and other sales promotion costs. 

What is the long term operation assets of Oasis?  machines, trucks and equipment for instance recorded as depreciation expenses. 

What items are listed in the catchall expense account?  What can the new business consider as machines, equipment and trucks?  What goes in that catchall account?  What does not qualify?

Who has interest expense?  Only S & D?  as they have the loan?

Who is going to have income tax expense and who will have pass through?

Ok that is 20 pages of the next book, my eyes are foggy ad I have enough questions for the morning.. and now Good Night

College of hard knocks

Classes begin tonight for me.. self taught,
I have to begin treating my life as nothing but going to college again.  I just wish I had a dorm to live in with a cafeteria and maid service, but here goes anyway.

Class one is really beginning in the middle.  Books.. read books tons of books.  I am in the middle of Shark Tank Jump start your business so I will begin taking notes on chapter 9 as I read it.  Then I am going to have to go back through it again to actually DO the things that are assigned in it.  I have been out of the mandatory learning/test passing situation for 25 years.  This is hard.. but I have a friends blog post marked so that I can go back and read and re read and re read again her thoughts on how SHE can do hard things. I can too.  I have to be proud of me even if no one else is or knows what extent I am going to. 
So here I go.
1. Finish reading shark tank
2 Figure out how to write an employee manual and get it done in the next few days
3. Read/digest/implement the Safety Manual
4. Continue working on repair manuals for each piece of equipment, the homework from LAST week.
5. Digest the legal part of the business,
6. Get tax materials ready for 4 business and our personals
7  Keep the other 3 businesses running at what ever level they need to be
8. Feed my family at least 2 meals a day
9. Make sure we have clean clothes each day
10. Dishes, dishes, dishes,
11. Stop the leak
12. Can we at least walk through the house with out falling
13. Where does M. have to be and at what time?
14. And anything else the principal deems necessary

That is off the top of my head tonight.  I got a good night sleep last night inspite of the weird dreams so tonight.. begins the cram sessions and late nights combined with early mornings.