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...
In the last decade, freelancing has emerged as a viable option for earning for a lot of people. From the US to Pakistan, the Philippines to India, and Europe to Africa, millions of people offer their services as freelancers. According to Exploding Topics,1.57 billion people the world over are self-employed. Despite the upsides of freelancing, such as flexibility, convenience, independence, etc., there is a flip side. Here are some of the cons of freelancing:
Taxes and Expenses: Whether you are an employer or employee, you have to do the taxes. Different countries have different laws applicable to freelancers. Plus, your salary may be subject to other deductions during bank transfers. Similarly, you need to bear the cost of all equipment and supplies, unlike a regular job where the employer is responsible for supplies.
Lack of job security: There is no job security in freelancing. You may work for six months consistently for one employer/client and be fired the next day. Additionally, you don’t get any pension, retirement plan, insurance, old-age benefits, etc. You have to save money yourself.
Health issues: You may find that you are getting fat as you eat junk food to save time and sit for extended periods. Prolonged screen time can be harmful to your eyesight. Likewise, freelancers may develop chronic diseases such as diabetes, heart issues, and joint pain due to sitting in a fixed posture. A study shows that people who sit for long hours are 16% more likely to die due to these causes.
Tip: Take a break regularly and engage in some physical activity to avoid negative consequences.
Burnout: As a freelancer, you may need to sit alone without much socializing which can affect your mental health. Unlimited revisions and tweaks cause freelancers to get fatigued and eventually exhausted as there are no hard rules that limit the number of times changes could be made during the ongoing work. Freelancers should write a contract that can limit this and other variables.
Although these factors are a bit concerning but you can work around them easily. Learn some sales techniques, take regular breaks, avoid burnout, and engage in physical activities. Follow these tips and you will ace the race (not the rat race, obviously.)
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