Why Spend My Time Learning This Stuff?
Ever hear that “a dollar today is worth more than a dollar tomorrow?” In the first section of the playbook, we’ll talk about how time can affect the value of money and cover concepts like present value and future value. We’ll also discuss things called annuities and dig in on how to compound interest. I don’t expect you to know what any of these concepts are right now (if you do you could use this section as a refresher) but want to let you know what’s coming up.
Later in the small business financial management course, we’ll apply these things to concepts like net present value, predicting future cash flows or even valuing a whole business. We’ll build on topics to be able to break down an income sheet for a company, understand a balance sheet, figure out the key profit drivers for businesses or find how much paying extra on a loan will save you in the long term. This information can be directly applied to your life by deciding on whether to expand a business or complete a project, understanding cash flow and income statements for investing or figuring out what metrics to focus on in your business to improve profitability. The time value of money ties into all of these concepts so we’ll start there in the first section of the playbook.
I hope you enjoy the courses and if you have the time, drop me a message to say hi!