Know Business! #BizToBiz #Podcast

16 Feb 2024 · 1 min

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In this brief segment of the "Know Business! #BizToBiz" podcast, the hosts discuss a common problem they encounter: business owners who generate substantial sales—sometimes a million dollars a month—yet lack basic financial knowledge. When banks request standard financial statements such as a balance sheet and profit & loss (P&L) statement, these owners are often unable to provide them or even explain what they are. The conversation highlights the frustration felt by lenders or advisors (including a referenced Allen who is on the phone) when dealing with such owners, underscoring a disconnect between revenue performance and financial management competence.

Business owners who don't know how to run their business. This is Allen. Allen, uh, he's on the phone screaming at people. I don't scream at them. Well, I'm not saying he's yelling at them.
It can be very frustrating. Yeah, like when you're talking to somebody and, you know, you go, you're going, you're— they send you over their bank statement, they're doing a million dollars a month in sales, and you go Okay, the bank's asking for your balance sheet and P&L, and they're like—
They don't even know what that is. They're like, huh?