1. 5 Financial Literacy Skills Bill Gates
would be proud of!
By Peter Frampton
Colour Accounting™ Guru

2. Skill 1: Find the value
• Any business is ultimately about assets
• Assets = the real value in your business (or life)
• What are they? Are they all listed?
• Often the most important assets are not shown
on the balance sheet e.g. reputation.

3. Skill 2: Know what revenue is
• Many people think income is cash. It’s not
• Revenue/income is any activity that generates
value
• How do you, and how does your business
generate value?

4. Skill 3: Profit Margins
• Profit is net value generated - that’s the
bottom line.
• To generate value you have to destroy value.
Sad but true. That’s expenses.
• The art of business: destroying as little value
as possible, to generate as much as possible.
That’s fat margins.
• E.g. How can you minimise expenses?

5. Skill 4: Cash is king
• Business is all about generating value
• But enough of it must be in the form of cash
• How can you help generate plenty of cash?
- Help turn accounts receivable into cash by getting
clients to pay early
- Reduce expenses
- Offer credit cards to clients
- Buy with credit cards (and pay them on time)

6. Skill 5: Are you succeeding?
• What’s your measure of success?
• What are your business’s key performance
indicators?
• Maybe: Return on assets. Or earnings before
interest and tax? Or revenue growth?
You must track them else you’re flying blind

7. Get in touch…
Visit: www.colouraccounting.holstgroup.co.uk
Attend: Workshops and Seminars
Call: 0845 456 4000
Join us:

8. Colour Accounting™
Financial Literacy has never looked so good!