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😏 Often a business begins to develop only thanks to the desire and intuition of its creator. Everything somehow turns out by itself!

First I created an LLCshka or IPeshka, then I bought and sold something, I repeated it again - I bought and sold. Everything turns out! Turnover is growing, one can’t cope and you are hiring the first assistant employees, and these are additional costs: salary and taxes from the wage fund, reporting. Need a chief accountant! And then a snowball appears, which rushes along the slope from the idea to the result. The com is growing, and with it the turnovers, the number of employees and responsibilities, expenses ...

🤑 STOP! And where is the profit of the creator of the business? Something is not heard about her! After all, the business, in addition to implementing the brilliant idea of the owner, must also bring him income and profit. Otherwise, this is not a business, but a hobby.

This is where the first question arises: where is the money in a small business?

To answer, you need to create a financial model of your business. A financial model is a table built on the basis of your average indicators of income and expenses, in which you can see from which sources incomes come and which rivers of expenses flow. Since any company tries to spend more than it earns, the costs always exceed revenues and nothing remains for the owner.

And so, what needs to be done?

1. build a business financial model based on averaged indicators of the company's income and expenses;

2. analyze the income and expenses of the company;

3. play with the data in the model to understand how these or those indicators affect the result.

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