The 5 Steps to a QoE (One of them is CRITICAL)
►EXECUTIVE SUMMARY 1) THE TAXES SAY $0 EBITDA. THE FINANCIALS SAY "SOMEWHAT.": Welcome to small-business diligence: 30 pages of messy returns, 4-6 monthly bank statements in PDF, and financials you can't interpret. That's the raw material you're betting your life savings on. 2) YOU'LL REBUILD THE P&L FROM BANK STATEMENTS — AND STILL GET IT WRONG: Deposits become revenue, withdrawals become expenses… except some withdrawals are balance-sheet items and some are add-backs. Miss those and your "income statement" is fiction with extra steps. 3) 80 CHECKLIST ITEMS. 300 DOCUMENTS. FIVE FOLDERS. YOU, ALONE.: Reconciling until the reconciling until the reconciling. Do it right and you reach reconciliation — or non-reconciliation. Either answer beats not knowing. 4) STEP 4 IS THE FETAL POSITION: Check the bank account, look at your wife, pray. Three seconds of feeling in control, three weeks of knowing you're not. This is what DIY diligence under a personal guarantee actually feels like. 5) STEP 5 IS THE ONLY ONE THAT MATTERS — HIRE A GOSH DARN PROFESSIONAL: You're making the biggest bet of your life under a personal guarantee. Skipping the pro to save a couple bucks is how a bad bet ruins 20 years of work. Step 6 looks just like step 4.