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What Is a Balance Sheet?

Up and Running

If you’re in the process of starting a business or writing a business plan document, you’ll have heard the phrase “balance sheet” mentioned, or maybe you’ve seen one in a sample business plan. Now that we’ve had a general overview of the balance sheet, let’s take a deeper look at the information a balance sheet should include.

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Praying to the God of Valuation

Both Sides of the Table

There were startups and a software industry but barely. In those years I learned to properly build product, price products, sell products and serve customers. Within 5 years I was on the board of real businesses with meaningful revenue, strong balance sheets, no debt and on the path to a few interesting exits.

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Revenue Recognition’s Effect On M&A

YoungUpstarts

A change in revenue recognition means a change in the due diligence process, specifically accounting diligence, modeling, quality of earnings and cost of integration. In certain industries, such as Software as a Service (SaaS) and hardware companies, the new standard is a minor tweak.

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What Is a Cash Flow Statement?

Up and Running

The cash flow statement is one of the three main financial statements (along with the income statement and balance sheet ) that shows the financial position and health of a business. The indirect cash flow statement is more popular because it can be easily created from reports produced by accounting software.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. You are particularly vulnerable if: You have revenue concentration (few customers each providing a large total of percentage of your revenue). otherwise I prefer to invest less and risk less).

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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

Rather, buyer behavior is rooted in their strategy — a combination of product thesis, their theory of their market’s evolution, how they need to position for customers and against competitors, their long-term brand development, geographic expansion plans, and so on. hundreds of millions of customers) and still growing fast.

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Cash Flow

Up and Running

The other two, an income statement (also known as a profit and loss statement ) and a balance sheet , complement the cash flow statement and help you see a full picture of your business’s finances. . As a starting point, you can try and bring in payments from your customers faster and potentially pay your own bills a bit slower.