I seem to have talked to lots of people in the last week about the Balance Sheet. A bit like Finance Directors, they are a generally misunderstood, and dare I say under-rated, source of information.

So what is the Balance Sheet? In a nutshell it tells you three things:

1. How much you owe to others
2. How much other owe you
3. How much cash you have

Now I may be simplistic, but I would say these three facts are the three most important things every business owner needs to know – all the time.

There is a lot of jargon in finance and accounts. I make it my business to explain everything in plain English.

The Balance Sheet is getting a lot of air time because it’s important. If you still don’t know what it’s about. Call me!

I presented a seminar last night to a group of business managers in Derby on the above subject. So that we all got to the pub at a reasonable time, I covered a few key points:

• Ask yourself every day: “Am I doing the things today that will ensure my business is here in 12 months time? “
• If you are not doing things that are about your business being here in 12 months time, why are you doing it?
• Understand the difference between cash and profit – you can make a loss and make money, and you can make a profit and lose money.
• Learn what the Balance Sheet is.
• Write down what your business is for in less than 20 words. Print it out, laminate it, and stick it above your desk.
• A bit of luck can go a long way.

These all seemed a bit obvious when I was preparing the talk, but after the presentation the audience reminded me how easy it is to forget the basics.

At a breakfast meeting today, I listened to a presentation about Social Media. Given that I am blogging, and you are reading this, the chances are high that we both ought to know all this stuff, but it made good enough sense to me to want to repeat it on here:

• Your online network is not the same as your personal address book.
• Don’t add technology to the way you do things, change the way you do things when you know what the technology can do.
• Social Media is about sharing; it won’t work if you are selfish.
• Accept the fact that there are those who already know their way around Social Media (Digital Natives), if you are new on the scene you are a Digital Immigrant, and it is incumbent on you to learn the language and customs.
• That said, it is up to you whether you abide by the established language and customs.
• The 5 steps involved: Arrive, Listen, Ask, Provide, Advise. In that order!

One day a florist goes to a barber for a haircut.
After the cut he asked about his bill and the barber replies,’ I cannot accept money from you. I’m doing community service this week.’
The florist was pleased and left the shop.
When the barber goes to open his shop the next morning there is a ‘Thank you’ card and a dozen roses waiting for him at his door.

Later, a cop comes in for a haircut, and when he tries to pay his bill, the barber again replies, ‘I cannot accept money from you. I’m doing community service this week.’
The cop is happy and leaves the shop.
The next morning when the barber goes to open up there is a ‘Thank you’ card and a dozen donuts waiting for him at his door.

Later that day, a college professor comes in for a haircut, and when he tries to pay his bill, the barber again replies, ‘I cannot accept money from you. I’m doing community service this week.’
The professor is very happy and leaves the shop.
The next morning when the barber opens his shop, there is a ‘Thank you’ card and a dozen different books, such as ‘How to Improve Your Business’ and ‘Becoming More Successful.’

Then, a Member of Parliament comes in for a haircut , and when he goes to pay his bill the barber again replies, ‘I cannot accept money from you. I’m doing community service this week.’
The Member of Parliament is very happy and leaves the shop.
The next morning when the barber goes to open up, there are a dozen Members of Parliament  lined up waiting for a free haircut!!

And that, my friends, illustrates the fundamental difference between the citizens of our country and the Members of Parliament.

Blogging as a way of communicating is being debated. Is it a good thing, is it just plain self-indulgent? Is it right to give the general public the ability to speak, well, so publically? http://journalismleadersforum.blogspot.com/2009/05/12th-forum-itv-news-chief-times-web.html

As with all forms of media, from the first printing press to twitter, there are those who just don’t get it, and those who do. There are those who use it well, and those who don’t.

Blogging is a relatively new medium that might yet have its place in history, but that place has to be fought for and proven. Twas ever thus.

I believe it can be a force for good, and Jo Geary’s eloquent support is key to its survival.
http://www.joannageary.com/2009/05/13/qit8-im-sick-and-tired-of-this-infernal-blog-debate/

At a breakfast meeting this morning, the excellent speaker said that there were three things that were good at travelling globally:
Disease,
Information,
Money.

She was talking about the charity she worked for, but made a compelling case for the involvement of all businesses and individuals to get involved.

The world we live in is no longer restricted to those we live next to. Our next door neighbours now live across the globe.

Our success (individual and corporate) depends on the well being of those we live with. As we hope to be looked after when things don’t work out, it is our responsibility to look after those less fortunate than ourselves.

How do we know who to help?

The message is: find out who you can best help, and get involved…