Know Your Restaurant’s Numbers
By David Scott Peters
Restaurant Tip of the Week
Ignorance is not bliss
When it comes to your restaurant’s money, learn to read the key financial documents, such as your balance sheet. One side of the balance sheet shows the assets of the restaurant. These assets are in the order in which they can most easily be liquidated. For instance, cash can be taken out of the bank today, but a building will take months or sometimes years to sell. The other side of a balance sheet shows the liabilities of the restaurant and to whom they are owed, or if they are a part of the owner’s equity. The golden rule to a balance sheet is that it must do exactly that: balance. The total liabilities must equal the total assets. In general you can think of a balance sheet as a document that shows the stuff you have and who owns that stuff.
David Scott Peters is a restaurant expert, coach, trainer and speaker, specializing in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Visit www.TheRestaurantExpert.com for more. Learn more tips, tricks and secrets in David’s free five-part e-course, “How to Explode Your Restaurant Profits NOW!” Simply sign up to receive the e-course at TheRestaurantExpert.com.