Many business owners, in small and large firms, don’t really focus on their balance sheet. They look at their profit and loss and, if they’re making a profit, they think ‘everything’s fine’.
From our experience, the balance sheet of a business is often the key to its success.
This is because a healthy balance sheet is often the key to being able to withstand shocks; it gives financiers the confidence to support your business with additional funds when things are tight.
The following infographic features 5 indicators of a healthy balance sheet.
In our free ebook, Managing Your Banking Relationship, we outlined our top tips for controlling your bank’s appetite for lending.
A bank, financier or equity investor focuses on three S’s when considering their appetite for your business. They are:
A healthy balance sheet is key to ensuring the second ‘S’ on that list, your security, is in a positive position.
If you would like advice or support about any aspect of managing your business, contact the team at JPAbusiness on 02 6360 0360 or 02 9893 1803 for a confidential, initial discussion.