Getting Ready for Financial Clarity
Before you jump into ratios and spreadsheets, let's talk about what actually matters. Understanding financial ratios isn't about memorizing formulas. It's about seeing your business numbers in a way that helps you make better decisions.
Explore Our ProgramQuestions People Actually Ask
We've organized these by where you might be in your journey. Not everyone starts at the same place, and that's completely fine.
Figuring Out if This Works for You
- Do I need accounting experience to understand this stuff?
- How much time should I actually set aside each week?
- Will this work if my business is still pretty small?
- What if I'm terrible with numbers and formulas?
- Can I apply this to different types of businesses?
While You're Working Through It
- Which ratios should I focus on first for my industry?
- How do I interpret results that seem contradictory?
- Where can I find reliable benchmark data to compare?
- What do I do if my numbers look concerning?
- How often should I be calculating these ratios?
Putting Knowledge into Practice
- How do I build ongoing financial analysis habits?
- Which reports should I create for my team or investors?
- When should I bring in a professional for deeper analysis?
- How do I track trends over multiple quarters effectively?
- What's the best way to communicate these insights?
As Your Business Evolves
- How do ratios change as my business grows?
- What new metrics become important at different stages?
- How do I adjust my analysis during economic shifts?
- Where can I get help with complex scenarios?
- What resources help me stay current with best practices?
Getting Started: Your First Week
Here's how most people approach their first seven days. This isn't rigid—adjust based on what makes sense for your situation.
Gather Your Recent Statements
Pull your last three months of financial statements. You'll need your balance sheet and income statement. Don't worry if they're not perfectly organized yet.
Identify Three Key Numbers
Start simple: find your current assets, current liabilities, and net profit. These three numbers unlock several important ratios right away.
Calculate Your Current Ratio
Divide current assets by current liabilities. This tells you if you can cover short-term obligations. It's basic but incredibly useful for cash planning.
Find Industry Benchmarks
Look up typical ratios for businesses similar to yours. Context matters—what's healthy in retail differs from professional services.
Document Your Starting Point
Write down your initial ratios and what they might indicate. You'll want to compare these against future calculations to spot trends.
Meet Your Learning Advisors
Roderick Lansing
Financial Analysis SpecialistRoderick spent twelve years helping small manufacturers understand their numbers. He translates complex financial concepts into practical advice you can actually use next week.
Petra Voss
Ratio Interpretation ExpertPetra specializes in teaching business owners how to spot warning signs before they become problems. Her background in retail and hospitality brings real-world context to every lesson.
Marcus Delmont
Implementation CoachMarcus works with participants after they complete the program. He helps build sustainable analysis habits and answers those tricky questions that come up when applying ratios to real business scenarios.
Real Situations You'll Learn to Handle
These aren't hypothetical exercises. They're based on actual situations we've helped business owners work through.
Understanding Your Working Capital Needs
Sarah runs a graphic design studio. Her clients pay net-30, but she needs to cover salaries every two weeks. She used ratio analysis to figure out exactly how much cash buffer she needed to maintain.
- Calculate the cash conversion cycle for service businesses
- Determine minimum cash reserves based on payment patterns
- Identify when to adjust pricing or payment terms
- Spot seasonal cash flow issues before they hit
