Writing about finances in your newsletter

March 2nd, 2012 by worddrive Leave a reply »

Suppose you’d like to develop the habit of letting your clients/members/patients know about your financial health, even if it could be better. If you’ve not written before about your balance sheet, debt structure, margins, reserves, etc. etc., take some time to ask yourself  how to talk about these things to people who may have little or no training in them. Not everyone has an MBA, even these days!

For example, suppose you are a retirement community in excellent financial health and that one characteristic of your balance sheet is $4 million in short term debt. How will a potential resident–or the family of such a resident–react to this information? And what can you say in your newsletter that clarifies how this borrowing is a sensible and sound decision?

Probably not by using terms like leverage, bond market, maximize operational efficiencies, and debt to equity ratio.

Instead, you’ll want to use familiar language. And in addition to comfortable words, you’ll want to talk about how the borrowing was planned and approved by the right people.

What’s the most important part about a loan? How you are going to pay it back, closely followed by why you borrowed it. And that needs to be stated, to your interested but general audience, in practical terms.

Try it and let me know how it goes!

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