Two Plus Two Always Equals Four: Guide for Small Business Owners Who Want to Make Profits.

By William Weber

A simplified guide to basic business principles that are not taught to most owners. It has actual examples and true stories of business owners experiences. This book is easy to read and understand but has powerful lessons which have been field tested to work. It is great for businesses making the transition from one generation to another. That transition is critical for the survival of every business. The goal is for you to make profits while having a good quality of life.

• Language: English
• Publisher: BookBaby
• Release date: Jan 15, 2018
• ISBN: 9781543920406

William Weber

WILLIAM WEBER is professor emeritus of history at California State University, Long Beach.

Book preview

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Chapter one

Business is a Group Activity

When I meet a business owner for the first time I begin a discussion with the same question; ‘Are you making money?’ If the answer is ‘yes’ I ask, ‘How do you know?’ If the answer is ‘no’ I ask the same question, ‘How do you know?’ You see if people go into business to make money, shouldn’t they know if they are indeed making money? Every business owner says that they want to make money but few ever know if they are actually making a profit. Many times they point to their Profit/Loss statement and say, ‘See, I made money last year’. I then ask, ‘Where is it? They rarely have an answer to that question. I see record keeping in a business the same way I see keeping score in the program at a baseball game. As you watch the game, you record every play. By putting numbers into the boxes, you document who hit the ball, who caught the ball, where did they throw it, and the result of that play. When the game is over you have a permanent record of the activities. Six months later, you can look at the scorecard and relive that game. Your financial records should be your way to relive what happened, even six months ago. True cost accounting can do just that. However, many business owners view their financial records as reports required to prepare tax