Berman Karen - Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

WeKaren and Joehave been working together for about ten years. Our partnership began with a chance meeting at a conference and evolved over time into co-ownership of our company, the Business Literacy Institute, and now into coauthorship of the Financial Intelligence series of books. Over the years, we have met, worked with, and shared experiences with many people who have had an impact on our thinking and our work. These books are a culmination of our education, of our work and management experiences, of our research, of our partnership, and of all we have learned from our work with thousands of employees, managers, and leaders.

Karen first met John while conducting research for her dissertation. He was, and still is, one of the preeminent experts on open-book management. We kept track of each other through the years and were always interested in each others work. Karen was delighted when John wanted to be a part of this project. He has been an indispensable part of the team.

Many other people have helped make this book a reality. Among them:

• Bo Burlingham, an editor-at-large at Inc. magazine, coauthor (with Jack Stack) of the wonderful books The Great Game of Business and A Stake in the Outcome , and author of Small Giants. Bo graciously shared with us the research and writing on financial fraud that he and Joe had gathered for another project. He also connected us with a wonderful group of entrepreneurs to interview for this book.
• Joe Cornwell and Joe VanDenberg, founders of Setpoint. Were grateful for their belief in teaching everyone the financials, and for their tireless efforts in encouraging everyone at Setpoint to participate actively in the success of the company. Were glad they let us tell some Setpoint stories. We want to acknowledge other Setpoint owners: Brad Angus (CEO of Setpoint), Clark Carlile, Steve Nuetzman, and Roger Thomas. We also want to acknowledge Machel Jackson, Reid Leland of Leanwerks, and all the Setpoint employees. If you are ever in Utah, you should visit Setpoint; the companys system works, and youll see both financial intelligence and psychic ownership in action. We suspect youll be surprised at the employees depth of understanding of the business and their commitment to its success.
• The entrepreneurs who agreed to be interviewed for this book about their own financial experiences. The group includes Chip Conley, CEO of Joie de Vivre Hospitality; Gary Erickson, coleader of Clif Bar; Paul Saginaw and Ari Weinzweig, cofounders of Zingermans; and Ed Zimmer, CEO of ECCO.
• Our clients at the Business Literacy Institute. Thanks to their commitment to business literacy, we have been able to help spread financial intelligence throughout many organizations. Its impossible to thank them all, but a few who helped us and cheered us on are Dan Leever, Michael Siegmund, Greg Bolingbroke and Gary St. Pierre of MacDermid Inc., Shellie Crandall of Brinks Inc., Mark Boitano and Seema Khan of Granite Construction, Richard ODonnell and Jeff Detrick of GE, Lou Poole Mobley of Gulfstream, John DeBruyne of PGS, Michelle Peterson and Elissa Harrell at KCI, Ron Wangerin and Melinda Del Toro of ViaSat, Heather Ludwig and Beth Dawson of GMAC ResCap, and Winny Ho of The Enterprise University.
• Our colleagues at the Business Literacy Institute. Rochelle Martel is one of those unique financial professionals who is also a fantastic teacher. Cathy Ivancic and Jim Bado are also both experts in the field of financial education, with the added knowledge of organizations with employee stock ownership plans. Marty Lasker and Brad Orton round out our facilitator team with their financial and facilitation expertise. Sharon Maass extensive knowledge of business literacy is felt in our customized content development, class facilitation, and communication activities. Stephanie Wexler is manager of client services; her professionalism keeps everything running smoothly. Judy Golove, manager of training development, ensures that all our training programs are of the highest quality. Sam Case conducted the interviews for this book, providing us with key data to share with you.
• Dave Merrill, the creative artist who illustrates our Money Maps. His ability to take our initial rough ideas and bring them to life is a true talent.
• Jacqueline Murphy and Brian Surette, our editor and assistant editor at Harvard Business Press. Thank you.
• Roberta Wolff, who generously gave us her time and energy with an outcome that delighted us all.
• And all the others who have helped us along the way, including Bonnie Andrus, Deborah Annes, Helen and Gene Berman, Kelin Gersick, Larry and Jewel Knight, Daniel Kutt, Michael Lee and the Main Graphics team, Don Mankin, Kimcee McAnally, Alan Miller, Annie Petros, Loren Roberts, Marlin Shelley, Brian Shore, and Mike Thompson. Our heartfelt thanks to all.

The following is a sample set of financials for an imaginary company.