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Tips and Guide to Managing Business Equity Successfully

written by: Tammy Rich•edited by: Donna Cosmato•updated: 10/4/2011

The tools needed to understand and manage equity are presented succinctly in this collection of articles. Join us for a look into the world of cash flow, debt financing, equity financing and financials. You become a better manager for your enterprise with a mastery of this body of knowledge.

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    Having trouble managing your business equity? Understanding and managing business equity is not an easy concept for most business owners. As an entrepreneur, starting a business uses much different skill sets than managing the business.

    Managing business equity begins with an understanding of your printed information. The financial statements offer a valuable look into the inner workings of your business from top to bottom. With an understanding of each statement, you will begin to see your business from a different perspective that enables you to take the company to a completely new level.

    From an accounting perspective, this type of equity management empowers you to attract money. Investors have certain needs. Your new understanding of the financial statements will help provide potential investors with required data.

    Equity and debt funding are considerations when raising capital. To attract money, you must make the stock appealing to investors. If you are able to understand and identify investors’ needs, you will be able to package your stock offering specifically to appeal to them.

    After obtaining financing, we are ready to analyze strategies for better business operation. Opportunities to cut expenses may be found in benchmarking to other companies in our industries. Any out of line benchmarking measurements will indicate room for improvement. In a retail operation, managing inventory is always a challenge. Simply analyzing the cash flow will reveal clues for improvements.

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    Income Statement Versus Balance Sheet

    An income statement reviews your income and expenses for a period. A balance sheet is a snapshot as of a certain day showing your assets, liabilities and owner equity. A template is provided for your use in understanding these important elements of a financial statement.

    A Small Business Guide to Working Capital

    Working capital may mean the difference between doing well and not making it. Working capital is easier to define than it is to manage. Working capital is taken through its cycle to effectively understand and manage the concept.

    Tips on Managing Working Capital for Businesses

    On the balance sheet, assets minus liabilities equal working capital. Working capital is the corner-stone of any business and must be managed well. A look at the steps to manage working capital successfully is presented here for your convenience.

    What Are the Advantages of Using Equity Capital for Investments?

    Equity capital is explored as an option to obtain financing. Through the sale of stock, money is generated by a business. This option makes obtaining funding easier from private investors. However, the sales pitch to private investors must be appealing and have their best interests in mind. This article will help you become familiar with the essential requirements.

    Return on Equity Formula: Explanation & Examples

    Equity is the investors’ total financial contribution, which a company requires to operate. The return on equity formula is explored to demonstrate what an investor wants in a company. Analyzing the formula for investor purposes is explored and explained.

    Sample Statement of Owner's Equity

    By analyzing the statement of owner’s equity, you will become familiar with the components. A template is provided for further analysis and use. The statement is thoroughly examined and explained. Owner equity components include all stock transactions as stock belongs to the owners of the company.

    Strategies for Attracting Equity Partners to a Small Business

    Offering a piece of ownership to someone for a financial investment is explored. However, owners will have expectations of a return on profit. In addition, the attraction of being able to transfer the ownership easily via selling stock is an advantage.

    Raising Funds for Your Small Business

    Before you begin operations, you must have sufficient capital. Debt and equity funding are two types available for consideration. Both types are explored in this article. Let’s take a look at the pros and cons of each. Each alternative has very different requirements and considerations.

    Advantages and Disadvantages of Debt Financing

    You are considering using bank financing for your new venture. Before you visit the bank, carefully consider the pros and cons detailed in this informative article. Many points to consider are presented, which include future planning, control and tax deductions.

    What Is Cash Flow Management Benchmarking?

    Benchmarking is the comparison of your company’s statistics to other similar companies comprising your industry. By using this valuable tool for cash flow, you will identify areas for improvement. Managing the cash flow with this tool’s help will enable you to be proactive in your industry.

    Top Cash Flow Management Tools

    Managing cash flow may make or break your business. Cash is required to pay the bills or even to hire employees. Explore the tools and resources required to manage your cash more effectively. Cash flow management is one of the most important aspects of any business and it should be mastered to ensure success.

    SWOT Analysis vs. Portfolio Analysis

    The two methods are compared and contrasted for your review. Business strengths and weaknesses as well as the potential opportunities that arise from use of the SWOT analysis are explained. Portfolio analysis, on the other hand, examines the business assets from an investor perspective.

    A One-Stop Guide to Traditional and Modern Managerial Accounting Concepts and Approaches

    Managerial accounting is the process of obtaining financial data from all departments to assist in the process of designing their strategies. In turn, the strategies enable the managers to choose the best decisions to support the company's goals and objectives. Here we take a look at the historical perspective and how evolution has affected our current day methods.

    The Value of Money in Corporate Financial Management

    Another perspective is added to the value of money in a corporate setting. Learn the concepts of creating and maintaining value in the future. All things are given a value, not just money. Come and explore this business management enhancing unique perspective.

    One-Stop Guide to Inventory Management

    Inventory management is crucial for any retail business. Shrinkage due to theft or misplacement will never be identified without proper management. All aspects of inventory management are explored in this thought provoking article.

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    Whether you are looking to grow your business or just survive troubling economic times, understanding and managing your business equity is a crucial key to success. Exploring your financial statements and obtaining the right kind of financing for your specific needs are two critical steps to complete. Strategies to ensure your success in the future will then be ready to implement. Your business will be in great hands and ready for the future.