How does your investor make money?

So you want someone to give you $100,000? $1,000,000? How does that person or firm make money? Too often I review business plans which have a great idea, a huge market, but no viable business plan that explains how the investor makes a return. I saw two this week like this (one in the US, one in Israel). Terrific technology ideas, potentially large markets, enthusiastic smart young teams but no P&L, no future financial plan and no discussion of current valuation, or even readiness to discuss it. Before someone other [...]

By |2019-01-04T10:00:25-08:00August 2, 2018|Career Advice|Comments Off on How does your investor make money?

5 reasons it’s critical to truly understand your P&L

In the last month I have had the experience of three small business leaders talking to me about their P&L in moment-in-time terms. Something like this... for this quarter (or this year) we'll make $X, we spend $Y less than I thought so we're $Z ahead. Usually followed by why $X and $Z are so great, and how they'll spend those extra dollars they are ahead, or why their company is successful as a result. Naive. Unless you have a steady business that has been the same for a while, [...]

By |2019-01-04T10:12:19-08:00July 20, 2017|Leadership|0 Comments
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