article thumbnail

Use agile budgeting to manage your cash

David Teten

I encourage entrepreneurs to correct course with a re-forecast early and often. Consider ThedaCare , a healthcare system in Wisconsin, which eliminated its budgeting process in 2010. The organization replaced the budget with a quarterly forecasting and planning process.… This agile approach is not restricted to small startups.

Agile 60
article thumbnail

How to prepare a sales forecast for a business plan - Startups and.

Tim Keane

How to prepare a sales forecast for a business plan.   Think about having the same discussion in a different way - by preparing your sales forecast by making your assumptions explicit.  By this time (in six months) we will be getting 20 orders per day from these two callers and our revenue will stabilize at that rate.

Insiders

Sign Up for our Newsletter

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

article thumbnail

How should I finance my new venture? - Startups and angels: Along.

Tim Keane

How to prepare a sales forecast for a business plan » March 09, 2011. Example two:  Explosive market share growth and revenue in an expanding market with acquisitive players available.   The company is pre-revenue and Sarah’s intention is to sell the company within three years. .  five years.). . 

Finance 83
article thumbnail

Are You Ready to be Quantitative? - Startups and angels: Along the.

Tim Keane

Now, as their revenue grows substantially, its time to make the shift toward a more quantitative management environment. As one example, think about forecasting sales based on market potential and competition, rather than simply on historical results by salesperson. Build our internal capacity to grow?

Ireland 60
article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   In a bottom up approach, the forecast is built from actual user projections. This is why a bottom up approach is more credible.

article thumbnail

When All Else Fails.Manipulate The Data - Startups and angels.

Tim Keane

As the venture progresses from financing to revenue (whether financed by an investor or the entrepreneur) that first big, critical issue has to be the first miss on projections. Wisconsin Angel Network Find Information about all of the networks in Wisconsin here! Will it happen? Risk at this point increases - a lot. Google Ads.

article thumbnail

A budget discussion with an entrepreneur - Startups and angels.

Tim Keane

In other words, if you are forecasting 100 orders in the next quarter, at $10,000 each, I’d ask how many potential orders there are in the market, whether there is any existing competitive experience, and how you derived your timing. Wisconsin Angel Network Find Information about all of the networks in Wisconsin here!