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Understanding financial jargon. Think of your business as a garden. Imagine your business is a garden. Just like plants need water and sunlight, your business needs money to grow. But in the business world, money has its own language, financial jargon. Let's break it down simply. Revenue. It's those seeds that you plant.

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Revenue is the money your business earns from selling products or services. And just like seeds, the more you plant, i.e. sell, the bigger your garden, i.e. your business, will grow. Profit. Think of that as the fruit you harvest. Profit is what's left after you pay for everything else. Think water, think soil, think tools.

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It's the reward for all your hard work. No profit, no harvest. Expenses, equivalent to the care that you give. Expenses are the cost of running your business, just like water and fertilizer for your plants. These are necessary to keep your garden healthy and you don't want to overspend. Cash flow. Just like the weather forecast, cash flow is the movement of money in and out of your business.

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Just like you watch the weather to know when to water your plants, you need to watch, you need to track your cash flow to ensure your business has enough money to thrive. Assets. It's the tools in your shed. Now assets are the valuable things that your business owns. The equipment, the inventory, or even patents.

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These help you to keep your garden, i.e. your business, running smoothly. Liabilities. Those are the weeds in your garden. Now liabilities will represent what your business owes. The loans, your bills, just like weeds, you need to manage them carefully so they don't take over. We wouldn't want that, would we?

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By thinking of your business as a garden, financial jargon becomes easier to understand. Keep your garden well tended and your business will flourish.