A Guide to Crafting Your LLC Operating Agreement

Up and Running

An operating agreement is the document that sets the rules for your LLC. You’ll be able to choose your management structure, lay out who’s responsible for what, and many other important issues. Should I have an operating agreement for my LLC?

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3 Main Components of Financial Projections

Business Plan Blog

Balance sheet, profit-loss statement, and cash flow statement are the 3 main parts of financial projections and should be included in any business plan : Balance Sheet. It is a summary of the financial balance of a company.

Accounting Software as a Subset of Enterprise Management

Blogtrepreneur | Entrepreneur Blog

Enterprise resource process (ERP) software is slowly lifting the veil of secrecy around accounting department processes by including accounting software as a subset of greater resource management.

How and Why to Manage Cash Flow

Up and Running

How many times have you read in the scandal sheets about some celebrity who “has” all the money in the world — and yet is flat broke? And when you don’t manage cash flow in your business, the lights go out for you and your enterprise too.

The 7 Key Metrics Every Business Owner Should Monitor

Up and Running

Depending on the type of business you operate, the metrics you monitor will differ. However, there are a number of metrics that every business owner should know, including cash flow, accounts payable, accounts receivable, direct costs, operating margin, net profit, and cash burn rate.

How to Make Sense of your Small Business Financial Statements

Up and Running

No doubt you refer to your income statement and your bank account for the basics, but the truth is most businesses ignore the most powerful financial tools in the accounting arsenal: the balance sheet and the cash flow statement. The Balance Sheet.

5 Ways to be More Profitable Before Christmas by Christine Rico

Mike Michalowicz

Renske Lynde, Co-founder & Managing Director, Food System 6 Accelerator. But if you are delaying the decision point (about cutting out services or products) because its too painful then now is good time to clean them off your balance sheet so you’ll be leaner going into the new year.

4 Reasons Why You Should Have An Accounting Process In Your Business

YoungUpstarts

In the beginning stages of most startups, the founder is the manager, marketer, salesman, among other titles. Manages Cash Flow. The balance sheet, income statement and cash flow statement are the most common statements that are prepared from your accounting system.

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The Essential Differences Between Cash and Profits

Up and Running

I learned how to manage cash flow first in business school, in a classroom setting, but it didn’t really mean anything to me until years later, as I was building my own business. Technically, interest and taxes are both expenses, but they often show up as separate from the operating expenses.

How One Startup Managed Its Investment Cash Flow

ReadWriteStart

We got a chance to look deep into the company's balance sheet and see exactly how it managed its cash flow over the past five years. The company now boasts millions of dollars in revenue, and more than 30 petabytes of managed storage in its data centers.

A trial balloon: How large corporates can coinvest with their employees’ angel investing

David Teten

Many large corporations face three seemingly disconnected challenges; they want: – Better returns on their balance sheet and underfunded pensions; – Access to the innovation economy to stay on top of the early-stage companies attacking their business; and. Why couldn’t a large company offer 1:1 or greater matching of the angel investing of their senior management? Alex Vassilev observes that another issue is managing employee attention.

18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

To ensure this, the official Standards recommend that assumptions sheets use a light grey fill color, and white/no fill for output sheets. This is especially important for companies that carry inventory on their balance sheet.

Why GE’s Jeff Immelt Lost His Job – Disruption and Activist Investors

Steve Blank

Over a period of years, every GE senior manager would learn the Lean Startup, and GE would be the showcase for how modern companies use entrepreneurial management to transform culture and drive long-term growth. So is John Rice, the head of Global Operations along with CFO Jeffrey Bornstein. Increase operating margins to 18% (by cutting expenses). They then buy stock in these public companies and attempt to convince management to increase the price of the shares.

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Cash Flow Matters: Accounts Receivable Financing Fuels New Model Of Working Capital

YoungUpstarts

In fact, your start-up needs are typically in direct opposition of your customers, as each entity works to manage its own working capital requirements. It can be a hard lesson in cash management, sometimes catching a young enterprise off guard.

Tips to Make CEO of your Company

The Startup Magazine

Here are some great tips for how you can manage your career and get yourself a promotion to the highest of leadership positions, CEO. Manage Your Talent. You need to understand what is behind a balance sheet and what is responsible for profits. Understand the Operations.

Financial Knowledge Can Lead To Small Business Success

YoungUpstarts

Prepare a Balance Sheet. Prepare an Income Statement Sheet. Include all that is applicable, including sales revenues, taxes, cost of sold goods, any losses, operating expenses and depreciation of property. Prepare a Cash Flow Statement Sheet.

Corporate Venture Capital: Obligatory or Oxymoron?

David Teten

Previously she was Co-Founder and CEO of SNAZZ, a cloud-based event management platform. Teten: For a large corporate, what are the advantages and disadvantages of a dedicated fund (possibly with external investors) vs. a 100% on-balance sheet investor?

Use the Opportunity Acid Test to Grow Your Business

Growthink Blog

President Kennedy’s “Moon Speech” September 12, 1962 A fundamental executive leadership challenge is finding the right balance between focusing on what is "core" to one's business and investing time and resources into pursuing adjacent and complementary opportunities to it.

Why Companies are Not Startups

Steve Blank

20 th century Management Tools for Execution In the 20 th century business schools and consulting firms developed an amazing management stack to assist companies to execute. Product management tools like Stage-Gate ® emerged to systematically manage Waterfall product development.

What is an Income Statement?

Up and Running

A financial plan section with the balance sheet,  cash flow statement, and income statement are must-haves. If the number after direct costs is smaller than the total of your operating expenses, youll know immediately that youre not profitable.

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How to Run Your Company Based on Metrics: What, Why, How, Who, and When

David Teten

The reason is that the real value of the board deck is not (ironically) for the board; it’s for management to track their own performance. So I want to see that management is using a dashboard every day, not just for board meetings. Operations should focus relentlessly on the latter.”.

The Model Leader

Active Garage

They influence others to do things and there is a difference between managing people and leading people. Operate with honesty and integrity. It is imperative as a business leader to understand profit and loss, balance sheet and cash flow statements.

9 Deadliest Start-up Sins

Steve Blank

Neither management nor investors tolerate “wrong turns” that result in delays. Even worse, a start-up’s investors are managing their financial expectations by this date as well. Financial progress is tracked using metrics like income statement, balance sheet, and cash flow.

Ten Ways To Keep Cash Flow Problems From Putting You Out Of Business

YoungUpstarts

Tracy , authors of “ Cash Flow For Dummies® “ Every small business owner knows the trouble that comes with managing the ins and outs (pun intended!) If a business is earning a profit, many business managers simply assume that cash flow is satisfactory. by Tage C.

The Value of Paying Down Technical Debt

OnlyOnce

Our Engineering team has a great term called Technical Debt, which is the accumulation of coding shortcuts and operational inefficiencies over the years in the name of getting product out the door faster that weighs on the company’s code base like debt weighs on a balance sheet. David’s answer was very thoughtful and worth reprinting in full: I’d like to share a couple of additional insight as to how Andy and I manage Tech Debt in the org: we insist that it be intentional.

DIY Small Business Accounting Creates Many Challenges

Blogtrepreneur | Entrepreneur Blog

Improper accounting practices can impact everything from your operational costs to inventory and profits. Messing up with your personal budget might mean you have to eliminate your takeout budget for a week until things balance out again. A mistake might be something small like the inability to balance your books, but it could also be something excessive like failing to pay payroll taxes and having the IRS knocking down your door.

Should Startups Care About Profitability?

Both Sides of the Table

If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth. million to fund operations in their first year of operations. After all, they doubled their operating costs when they weren’t even profitable.

The Woodstock of K-12 Education

Steve Blank

Learning how to keep track of inventory and cash flow and creating an income statement and a balance sheet are great skills to learn for managing existing businesses. Describing something as the “ Woodstock of…” has taken to mean a one-of-a-kind historic gathering.

The Key Elements of the Financial Plan

Up and Running

Balance sheet. You’ll also list your operating expenses, which are the expenses associated with running your business that aren’t incurred directly by making a sale. Here’s why: Let’s say you operate a summer camp business. Balance sheet .

How to Create an Expense Budget

Up and Running

An expense budget is part of the bread-and-butter basics of good management. Being right on budget is usually good, but good management takes the regular review to check on the timing, efficiency, and results of what your business spends.

Top 3 Priorities of the Best CFOs

Inc Startups

In our experience, the best CFOs have expanded well beyond traditional accounting and balance sheet management and taken on new roles. Doing so will enable the CFO to spend more time and energy being a partner to the management team and driving value in the business

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. If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins).

Why You Should Quit Worrying About Becoming the Next Facebook

YoungUpstarts

Once your business can function profitably without you managing the day-to-day operations, you’re ready for expansion. Facebook may have a few more zeros on its balance sheet, but you can still leverage technology, use your creativity, and make a strong impact on society.

Containing Growth Chaos: Five Things To Do When Your Company Is On The Upswing

YoungUpstarts

We see balance sheets go from being in the red to finally creeping into the black and, if we’re fortunate enough, beyond our wildest dreams. But by year 10, just one-third remain in operation. Manage cash flow.

Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

You might consider intellectual property and real estate, too, especially where their true value isn’t represented on the balance sheet. by Kenneth H.

Some Thoughts On The IPO Market For Web Companies

A VC : Venture Capital and Technology

The company with the least amount of revenue is Pandora which, as of its last quarterly report, is operating at a $300mm annual revenue run rate. These companies also have built sophisticated management teams that are highly capable of managing a business to meet the expectations of public market investors. They have strong operating executives, strong financial executives, and strong product and engineering leadership. We have an IPO market for web companies again.

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ESADE Business School Commencement Speech

Steve Blank

In fact, it was only 7 years ago that Apple shipped its first iPhone and Google introduced its Android operating system. But the world you lead will be much different from the one your professors knew or your predecessors managed.

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Building Convertible Debt into the Premoney Valuation

ithacaVC

Having a relatively small about of convertible debt on your balance sheet prior to your Series A financing is not a bad thing. The X and Y are negotiated, with the Y typically being a date shortly before the convertible debt is all used up by the company in its operations. It can get painful so make sure to manage your expectations. I am a big fan of convertible debt (with appropriate terms).

5 Things To Consider Before Applying For A Bank Loan

YoungUpstarts

Along with checking with a business credit reporting agency like Dun & Bradstreet for any record that might be available, the bank will ask to see your bank statements, balance sheets, profit and loss statements, and tax returns from the past two fiscal years.

How to Write an Executive Summary

Up and Running

To get bankers to read on, the executive summary has to cover the six main points suggested in the beginning of this article, plus a few selected other points that highlight stability, assets on the balance sheet, and financial history, showing that the loan is not risky.