08/24/2026
Your P&L tells you whether the business model works.
Your balance sheet tells you what shape you are in right now. Those are different questions, and only one of them gets asked.
New piece: the four lines worth reading, the two comparisons that make it useful, and the failure mode it exists to catch. Ten minutes, no calculations harder than division.
Your P&L tells you whether the business model works. Your balance sheet tells you what shape you are in right now, and almost nobody under a million has looked at theirs.