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Growing Your Wealth Exponentially

Growing Your Wealth Exponentially
BY JAMES OH

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LETTING GO AND MOVING ON BY JAMES OH

LETTING GO AND MOVING ON BY JAMES OH
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MINDSET SHIFT: EMPLOYEE TO ENTREPRENEUR

MINDSET SHIFT: EMPLOYEE TO ENTREPRENEUR
BY JAMES OH

Wednesday, November 20, 2013

THE MIRACLE OF LOOKING BEYOND FINANCIAL STATEMENTS


"You are very powerful provided you know how powerful you are." Yogi Bhajan.


Why are some people able to have more success than others ? Why do some people make more money, live happier lives, and accomplish much more then the great majority? What is the real recipe of success?

They are able to achieve this miracle because they know how to make best use of the opportunity as compared to the average person. "The average person is 95 percent eyes and only five percent mind when they invest. If you want to become a professional in the Business and Investment quadrants, you need to train your eyes to be only five percent and train your mind to be the other 95 percent." - Rich Dad

Despite a weak global environment and scarce resources, the business today is under tremendous pressure to deliver stakeholder value and continuous growth. To achieve this new reality, we need to be developed flash foresight - a burst of insight about the future that produces a new and radically different way of doing something that will open up invisible opportunities and solve seemingly impossible problems. Do you agree that it is purely a question of knowing how and where to look, and taking the time to do the looking. The ability to see trends and identify future opportunities is a learned skill. This book is written to provide you a broader and wider perspectives that will stay with you forever.


WHY WE NEED TO LOOK BEYOND THE FINANCIAL STATEMENTS?

Looking at financial statements without considering the whole big picture of its operational environment, is just like construe the tip of iceberg as its actual size.

In short, what is visible may not be so important comparative to what is the invisible. But, don't get me wrong to say that the visible is not important all all. Just like the iceberg situation, the visible tip may serves as the last trigger point for us to avoid from hitting it, if somehow our radar system had failed to detect it much earlier. To ascertain the situation more precisely and concisely, we need to look beyond the financial statements.


This Ebook is written with intention to provide you the sound understanding have a much clearer picture as a whole, far beyond your naked eyes so that you can obtain its maximum benefits with ease and confidence. You may then ask why? This is because it is written to equip its readers with the required tools, mindsets and skills to enable them to zoom in the various critical key and profound areas to see the invisible.

It is undeniable fact that the financial statements have been traditionally used to serve their stakeholders for its intended purposes. To have a much greater impact and fun, I prefer to view it from an artist's perspective rather than an Accountant's. Accountants are just like artists who draw up the company's financial statements by using numbers and words instead of paint and brush. For instance in the income statement, it tells us that the company managed to generate the annual income of X dollars comparatively to Y dollars in its preceding years. To enhance your appetite and excitement, perhaps you may read its income statement like a story describing the company's income performance whether it has improved or deteriorated its sales comparing to its preceding year, rather than just reading at the boring number, words or graphs at face value, without much comparison and analysis. By applying the former approach, it will provoke you to think further as to what main underlying factors caused the change.  

No doubts that the financial statements, at face value, tell us lots and loads about your company's performance. For example, the statement of profit and loss lets us know how much the company sold, and whether those sales resulted in overall profitability. The balance sheet tells us where the company stands at that particular date, and gives us a snap shot of its overall financial position. Whereas, the statement of cash flows informs us how cash moves through the business and whether operations are supplying or draining cash. All this data is critical for its future plans, but it's really just a small part of the total knowledge its reader can gain from these exceptionally enlightening reports.


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