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.

How To Effectively Manage Business Costs


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?

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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.

How One Startup Managed Its Investment Cash Flow


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.

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).

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.

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


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.

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


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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Estimating Realistic Startup Costs

Up and Running

Customers are wary of brand new businesses with makeshift logistics, and you can’t figure out how to manage startup costs until you calculate them accurately. . Cash balance on starting date. Second, money to be spent on operating expenses and buying inventory.

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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.

Financial Knowledge Can Lead To Small Business Success


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.

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


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.

Five key steps for selling your business

NZ Entrepreneur

This checklist looks at areas you may need to improve on such as legal and financial conditions, business operations, products and services and your customer base, to make your offering even more attractive to prospective buyers.

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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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.

Why You Should Quit Worrying About Becoming the Next Facebook


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.

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.

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.

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


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.

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 .

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


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

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.

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).

“Un-spoil” Your Kids: A Holiday Message For Parents Of Entitled (And Financially Clueless) Children


Here are our operating expenses. There is no reason for them to exist solely on the “expense” side of the balance sheet. Advice For The Young At Heart financial education managing money parenting youth youth entrepreneurship

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.

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.

How to Write a Business Plan for a Subscription Box Service

Up and Running

Operations. Now, you’ll describe your marketing strategies, sales plans, operations information, milestones, your team and company basics, and your financial plan. Operations. There are several expenditures you need to address before starting your business operations.

The Value of Paying Down Technical Debt


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.

5 Things To Consider Before Applying For A Bank Loan


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.

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.

Corporate Finance - Business Transformation | Director and Senior Director Opportunities


As such, key activities include Company financial analysis (knowledge of and experience in P&L, Balance Sheet and Cash Flow assessments preferred) Market analysis Operational analysis (e.g. on the execution of various engagements and also assist with ongoing business development activity.

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 Write a Business Plan for a Cannabis Company

Up and Running

Team: Who is on your management team? With the rise of new cannabis companies, it is important to differentiate your cannabis company from the competition, whether you are opening a farm, extraction operation, or dispensary. Your operations plan. Operations.

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.

Quickly Unpacking Two Recent Acquisitions (of Cylance; of PlanGrid)


price tag squeezed out by BlackBerry represented *over half* of the actual cash reserves it had sitting on its balance sheet. Compare that with $3-4M seed rounds today, you could say PlanGrid raised a pre-seed round, but then quickly found their market to target, and were able to finance operations with revenue until Sequoia knocked on their door. Autodesk will integrate PlanGrid’s software and its Autodesk Revit and Autodesk BIM 360 construction-management platform.

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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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).

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.