Financial reports can feel intimidating, especially for founders without a finance background. But understanding the basics can dramatically improve decision-making and confidence. In this practical guide, Rebecca Nankya Ssemugabi breaks down how to read a balance sheet in simple, everyday language, supported by a hands-on balance sheet generator you can try yourself. M ost founders don’t struggle with running a business. They struggle with understanding the numbers behind it. And few reports feel more intimidating than the balance sheet. But here’s the truth: a balance sheet is simply a snapshot of what your business owns, what it owes, and what’s actually yours at a specific point in time. The Balance Sheet in One Line Every balance sheet is built on one simple equation: Assets = Liabilities + Equity Assets are what the business owns Liabilities are what the business owes Equity is what belongs to the owner(s) If this equation balances, the balance sheet makes sense. A Simple Exa...
More people are side-hustling nowadays than at any other time. Roughly 70 million Americans are doing some side hustle. Numerous factors have led to this phenomenon; however, people are primarily motivated by Silicon Valley success stories. Similarly, they hear how entrepreneurs turn their side hustles into million-dollar companies, pay off student loans, buy their own houses, and make big, in general. These factors lure them to a side hustle. However, it has a flip side too. People don’t hear the stories where entrepreneurs weren’t able to take off or couldn’t pay off debt - the failures. Some even dove all in but could not make it. Analyzing these failures is crucial if you want to start up. So how do you balance it? Should you realize your dream or remain on the safer side? It is a tough question. Fortunately, we have an answer. Patrick J. McGinnis has given the idea to become a ‘ten per cent entrepreneur’ in his book The 10% Entrepreneur. Patrick is an investor, entrepreneur, ...