Are Small Business Owners Financially Illiterate?

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Finance Stat: According to a Quick Books survey, 40 percent of business owners identify themselves as financially illiterate. But in “The Courage to be Profitable: Get and Stay Profitable in Less than 30 Minutes a Month,” by Ruth King, small business owners get a crash course in financial literacy.

“I’ve been in business for 30 years. I’m a serial entrepreneur and I’ve had eight companies. This book is from my personal experience with the fact that most small business owners have no clue about Profit and Loss statements,” King told TNJ.com.

King, who has an MBA in finance and gives training courses on the subject, says the book will teach business owners everything they need to know in less than two years, but that they’ll have to put some work into it. “The lessons have to be implemented. The first month is tough, but by the 5th month, you’ll say, ‘why was I having such a problem with this?’”     

The biggest takeaway? “Readers will benefit by learning how to look at their score card every month where they will be able to see when something doesn’t look right,” explains King.

Even with the newfound knowledge, King advises business owners to hire a part-time bookkeeper to delegate debits and credits, freeing up owners to focus on the day-to-day operations of running a business.

“Small business owners can follow the easy steps to review their financial statements every month. They discover how to spot minor issues and take care of them before they become major crises,” she shares. “It’s like learning to read. The first time is hard, then it becomes easier and easier.  After a while, you just do it and a whole new world opens up to you.”