Recommended for all entrepreneurs and startups. The article addresses the basic thought process and includes some how-to — important launch direction in your role as entrepreneur
Excerpt: I’m involved in two startups. In both cases, we are going through the process of developing a model that evaluates all aspects of the business — our target customers, products and services, organization, infrastructure, channels, financial projections, and funding needs.
In particular, the process of building a solid financial model forces you to think through things like payroll costs, equipment purchases, research and development, sales channels, and even office space. I found myself adding new elements to every part of our business model as I focused on the financial aspects.
I was reminded this week of how important it is to view them all as a whole instead of as the individual parts. I will share the details on one of those startups in this article.
Read full article via Analyzing a Startup, and Pivoting | Practical eCommerce.
Tools for management …..answers to what-if in order to help you make decisions and plan strategies.
Excerpt……..In the corporate sphere, there is a great deal of uncertainty and risk. It can be difficult to predict the chances of a project’s success or of reaping profit. It is therefore for such purposes that many companies are turning to financial modeling. A financial model involves the building of an abstract representation of a particular situation involving financial investments. These are usually mathematical models, involving the use of one or several equations to model the performance of a financial asset, investment, or project.
This article looks at financial modeling by reviewing what financial modeling is, the role of cash flow forecasting, challenges modeling addresses, tools for implementing it, and benefits that accrue from it.
Read summary and download pdf here……via Financial Modeling to Guarantee Financial Decision Success | Los Angeles Part-Time CFO Services | CFO Edge, LLC.
Small business heads up……a good look at what are cloud economics and risks.
Excerpt………companies adopting cloud computing often miss the risk and depth of change needed to embrace a cloud economics model as they embrace cloud services. It turns out that the financial model for cloud computing has far more nuances for both a company and its cloud services provider than many people understand up front.
Read full article…….via The Truth About Cloud Economics – Drue Reeves and Daryl Plummer – Harvard Business Review.