DAWN FOTOPULOS is founder of Best Small Biz [...], an award-winning blog and resource site for small-businesspeople. A former banker, she is currently an Associate Professor of Business at The King's College in Manhattan.

Acknowledgments xi

Introduction: Why You Need This Book xv

1 Your Financial Dashboard: The Net Income Statement,

Cash Flow Statement, and Balance Sheet 1

The Net Income Statement 4

The Cash Flow Statement 9

The Balance Sheet 13

Key Takeaways 16

2 The Net Income Statement: The Key to Growing

Your Profits 19

Line Items on Your Net Income Statement 20

Management Benchmarks 38

Key Takeaways 39

3 Using Your Net Income Statement to Improve Profits:

Driving with Your Eyes Open 43

Driving Profits for Product Businesses 44

Driving Profits for Service Businesses 59

Key Takeaways 69

4 The Breakeven Point: When Your Business Is

Truly Self-Sustaining 71

Why the Breakeven Point Matters 72

How to Discover the Breakeven Point 74

It Takes Time to Reach the Breakeven Point 82

Marketing Expenses Can Help or Hinder 85

Staying At or Above Your Breakeven Point 88

Key Takeaways 89

5 Your Cash Flow Statement Is Speaking:

Can You Hear It? 91

Why Cash Flow Is Important 92

Net Revenue and Cash Are Not the Same Thing 93

How the Cash Flow Statement Works 101

Budgeting Cash the Easy Way 105

Cash-Burning Traps to Avoid 109

Key Takeaways 112

6 Managing Your Cash Flow: More Is Better 115

Managing Your Cash Inflow 116

Managing Your Cash Outflow 132

Key Takeaways 135

7 What's Your Company Worth? The Balance Sheet

Holds the Secret 137

What the Balance Sheet Reveals 138

The Three Sections of the Balance Sheet 142

Key Takeaways 160

8 The Balance Sheet in Action: How to Win Friends

and Influence Bankers 163

What the Balance Sheet Numbers Reveal 164

How to Improve Your Balance Sheet 167

How a Bank Evaluates a Business 169

Duration of a Loan and the Role of Collateral 172

Eight Myths About Dealing with Banks 174

Key Takeaways 181

9 Putting It All Together: Your Financial Dashboard

in Real Time 183

Basic Business Transactions 185

Ratios and Percentages Help Find the Patterns 197

Key Takeaways 201

10 Numbers Make the Business: An Interview with

Norm Brodsky 205

Inside the Mind of Norm Brodsky 206

Key Takeaways 223

Glossary 225

Index 233

About the Author 243