Line up 100 salespeople and maybe three will give you the correct definition of a balance sheet! The other 97 need to view this video.

Most salespeople know nothing about a balance sheet. I cover the basics of this important document in this video lesson. What comes first, the balance sheet or income statement.  You’d be surprised to know how many make the wrong choice. It takes cash to begin a business and that cash shows up on the balance sheet. Without cash and a beginning balance sheet there is no income statement! Cash usually comes from two sources, the bank and the shareholders or owners. Both entities want something back. The bank wants interest and eventually principal and the shareholders want a return based upon dividend and stock price appreciation.

On average what the bank and shareholders want back is the firm’s cost of capital. If you can help the firm cover its cost of capital, you have helped create wealth for shareholders and have turned a prospect into a loyal customer.