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  • Writer's pictureEd Patton

Need for Financial Fundamentals (the world & your business are constantly changing)

Updated: Jun 1

The effectiveness of a business’s primary financial statements is diminished if its leaders do not comprehend their company’s financial fundamentals. 


Succinct and understandable financial fundamentals are needed as businesses never know what curveballs are going to be thrown at them.   Many are not able to see what is around the next corner – either in the near-term, the mid-term or the long-term.


Below are some of the reasons privately owned business leaders need to comprehend their financial fundamentals:

  • These businesses are dynamic organizations. 

  • They are not stagnant.

  • Their financial and business status can change rapidly as these companies exist in an ever-changing world / environment – can be like an amusement park roller coaster.

  • Additionally, the difficulty of procuring funds results in too many privately owned companies being thinly capitalized.  This reduces the room for errors or time to recognize and correct problems.


Staying informed of financial fundamentals strengthens leaderships’ understanding of past activities and planning for the future.


Flying blind


Business leaders are financially flying blind when they do not have succinct and understandable financial fundamentals, in everyday language.

A lack of fundamentals (financial or otherwise) increases the chances of undesirable outcome(s).


Financial clarity for business leaders should be prioritized as a “have to have” and not a “nice to have”


Peace of mind


Having comprehensible financial fundamentals provides businesses with a peace of mind.   Knowledge of both strengths and weaknesses is enlightening and is essential to running a business.


Financial fundamentals are locked up in existing reports


The Trender® Platform conveys the 5 Elements® of Financial Fundamentals from information of existing common reports of the internal monthly balance sheets and income statements (plus the working capital borrowing base report if a line of credit is in place).


Tremendous technological advancements have been achieved to improve the efficient recording of, and access to, business activities and operations analysis.   


However, minimal changes have been implemented for the clarification of businesses macro financial fundamentals – in everyday language.


Fortunately, help for business leaders is here!

Generating commonsense financial fundamentals, in everyday language, is not rocket science.

Trenders effectively provides business leaders with their company’s succinct, full financial profile.


Trender’s guiding principal…business leaders need to have, and should be provided with, their company’s financial fundamentals in a way they can be easily comprehended.


A couple of taglines used to help describe the Trender’s effective financial insights are:

  • Simplicity is the ultimate sophistication.

  • Only a few numbers in a few minutes.


It is a responsibility and an honor to provide business leaders with their company's succinct and understandable financial fundamentals.



If you would like to learn more about how the Trenders can simplify and clarify your company’s financial fundamentals – please reach out to Ed Patton to discuss or to schedule a call.


Thank you,

Edward B. Patton

5701 Broadway, Suite 102

San Antonio, Texas 78209


Phone (210) 822-9977



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