Week 10 Reading Reflection

Financial Preparation for Entrepreneurial Ventures

v  What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? 

Ø  There weren’t many surprises in this chapter for me. I have taken financial accounting classes in the past, so the information isn’t entirely new. However, I don’t remember the vertical and horizontal analysis. It’s pretty explanatory. However, if you put yourself in an investor’s shoes, the analysis is a brilliant part in getting information quickly to make a decision about a business.

v  Identify at least one part of the reading that was confusing to you.

Ø  I didn’t understand why the author put that the cash flow statement is also known as, “the statement of cash flows”. Isn’t this the same thing? It’s not abbreviated. Why bother putting, “also known”? That was what was confusing to me. (pg 348)

v  If you were able to ask two questions to the author, what would you ask? Why?

Ø  Under the five tips for making sure a business in a declining economy gets paid, what is the best way to discontinue a relationship with an unprofitable customer without percussions? I would ask this, because it’s a tough situation. You don’t want a customer to leave. What if this customer puts terrible things on social media about your business?

Ø  Is there any other tactics that may be better to use for good cash flows in a declining economy? It seems like giving customers credit cards is a hassle. You want your money. You don’t want to lose or make any of the customers unhappy.

v  Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

Ø  In the John Wheatman expense and operating budget example, I disagree with repairs being labeled as relatively stable and a fixed expense. Even though there is maintenance kept on your operating budget, what if something breaks? What if that leads to other things breaking? I don’t really believe that repairs can be a fixed expense. It’s not going to be the same every year. 

 

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