Remove .Net Remove Balance Sheet Remove Business Model Remove Finance
article thumbnail

ESADE Business School Commencement Speech

Steve Blank

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. Unfortunately as we’ve learned from recent experience, using Return on Net Assets and IRR as proxies for efficiency and execution won’t save a company when their industry encounters creative disruption.

article thumbnail

How to Write a Business Plan for a Cannabis Company

Up and Running

Write your business plan and develop your business model with this in mind so you can avoid these issues. . You can choose from a few different types of business plans depending on your needs. If you’re seeking investment, you need a traditional business plan. Target market: Who is your ideal buyer? Be specific.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Why Companies are Not Startups

Steve Blank

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is: A company is a permanent organization designed to execute a repeatable and scalable business model.

IRR 335
article thumbnail

Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. It’s a lot easier to get these numbers to look great by outsourcing everything, getting assets off the balance sheet and only investing in things that pay off fast.

article thumbnail

No Accounting For Startups

Steve Blank

Startups that are searching for a business model need to keep score differently than large companies that are executing a known business model. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. Managing the Business. Here’s why.

article thumbnail

How to Write a Business Plan for an Outpatient Medical Practice

Up and Running

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. First, your business plan laid out the opportunity at hand. Now is the time to lay out what you’ll do to attract patients and set up a viable business model with healthy financials. Be specific.

article thumbnail

Philosopher Versus MBA

Reid Hoffman

The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines. What business schools can provide is an opportunity to learn a set of skills that can be helpful on the entrepreneurial journey. In particular, Bill Sahlman’s Entrepreneurial Finance course was excellent.