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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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.

The Ideal Financial Reporting Tempo For A VC-Backed Company

Feld Thoughts

This approach was originally stimulated by Steve Blank’s posts Why Board Meetings Suck and Reinventing the Board Meeting – Part 2 of 2 but modified to fit the more varied and flexible reality that I operate in. It includes P&L, Balance Sheet, and Cash Flow statements. In addition, there is a cover MD&A (hopefully written by the CFO – not a formal SEC one, but a comprehensive management discussion and analysis).

5 Critical Things Entrepreneurs Need to Know about Managing Their Company's Finances.

Small Business Force

In early stage companies (and even some later stage or mature ones), there is no one area where most entrepreneurs and small business owners are lacking in just basic fundamentals, than in dealing with their company's finances and financial management.

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.

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.

How To Effectively Manage Business Costs

YoungUpstarts

There is an old management adage which says that “you cannot manage what you cannot measure” This saying may be true in all parts of a company, but is especially pertinent in finance. How can one manage one’s business costs better?

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.

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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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.

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.

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.

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.

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.

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.

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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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 .

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.

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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Visualizing the Interactions Between CAC, Churn and LTV

A Smart Bear: Startups and Marketing for Geeks

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity).

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.

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What Type of Business Plan Do I Need?

Up and Running

We get this question a lot, mainly because there are so many different things labelled as business plans: strategic plans, annual plans, operational plans, feasibility plans, and, of course, what most people think of, business plans for startups seeking investment. Manage cash flow.

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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

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.

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.

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.

Begin with the End in Mind: Include Your Business Exit in Your Business Plan

Up and Running

The disciplined process of business planning helps owners and managers foresee both opportunities and problems before they arise. A complete and accurate current and historical view of both the company’s income statement and balance sheet will be necessary.

The Different Types of Business Plans

Up and Running

Business plans go by many names: Strategic plans, operational plans, internal plans, and many others. Feasibility plans, internal plans, operations plan, annual plans, and strategic plans. These serve as a reminder for owners and managers. Operations plan or annual plan.

Adapting to the Great Reset

Non-Linear Growth

How much cash do you have on the balance sheet? Focus on Cash: I’m amazed at how many entrepreneurs forget or haven’t yet learned that running a business is all about managing cash. Accelerate your cash-flow by managing receivables.

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Five Ways to Automate Your Small Business

Blogtrepreneur | Entrepreneur Blog

As you might be reveling in self-doubt or taking a personal inventory of your life balance, you might be thinking about the payoff. Before you jump ship and sink your business for the life you once disdained, there’s hope in managing the mundane tasks that weigh you down.

5 Unexpected Benefits of Opening Your Books

Inc Startups

In the early 1980’s , when Jack Stack led a management buyout of his Springfield, Missouri, factory, he faced steep odds: the economy was in the tank, profits were uncertain, and the 116-employee engine remanufacturer had 89 times more debt than equity.

Becoming an Entrepreneur You Get Risk, But No New Skills!

Small Business Force

Did you really understand how much you needed to know about marketing, sales, operations, finance and customer support, just to name a few. And you need to understand and manage to the three or four key metrics that drive your business.

6 Best Business Planning Tips I Ever Got

Inc Startups

Even in good times, there are challenges to manage: a key employee retires or leaves for another opportunity. Create a balance sheet: an income statement and a cash-flow statement. Your company will face weak links and unexpected turns. Don't get caught flat-footed.

5 Money Mistakes You Don't Want to Make

Inc Startups

Being Disorganized Yes, taking care of your day-to-day operations and putting a heavy emphasis on satisfying your clients should take precedence over organizing your receipts and updating your financials, but these important things can''t be ignored for too long.

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.

How to Write a Business Plan

Up and Running

Management Team. In that case, you can dispense with details about the management team, funding requirements, and traction, and instead treat the executive summary as an overview of the strategic direction of the company, to ensure that all team members are on the same page.