Understanding your finances

In this module you’ll explore:

• How viability underpins the business model
• The importance of knowing your numbers and what they can tell you about your business
• Key financial terms you need to know
• Three key financial statements

Start by downloading and saving the workbook (PDF 2.0MB) to your computer, to use throughout the module, capturing any key takeaways and completing the exercises at the end of each chapter.

Let’s start with the basics… Why is understanding your finances important? In the first chapter, we’ll look at the importance of understanding the viability of your business model and what knowing your numbers can tell you about your business.

In the next chapter we’re going to explore some key financial terms and do some jargon busting. Many of you will be already be familiar with some or all of these terms but, for those who aren’t, knowing these terms and what they mean is half the battle when it comes to knowing your numbers!

These are also in your workbooks so take notes where you need to.

Understanding your finances doesn’t have to be daunting. In this chapter we’ll introduce you to three key financial statements that will help you to understand and manage your finances within your business.

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