Comments on: 10 thoughts for small businesses and startups on financial modeling http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/ crowdSPRING's blog about design, digital creativity, business strategy, and more. Thu, 16 Feb 2012 07:52:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: secured loan http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-7179 secured loan Tue, 04 Jan 2011 11:30:00 +0000 http://blog.crowdspring.com/?p=2444#comment-7179 very knowledgeable tips. very nicely explained. I enjoyed reading this article. Thanks for sharing. very knowledgeable tips. very nicely explained. I enjoyed reading this article. Thanks for sharing.

]]> By: JFDI | Life Putting - Dan Putt http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1872 JFDI | Life Putting - Dan Putt Wed, 02 Dec 2009 23:10:13 +0000 http://blog.crowdspring.com/?p=2444#comment-1872 [...] 10 thoughts for small businesses and startups on financial modeling (crowdspring.com) blog comments powered by Disqus var disqus_url = 'http://danputt.com/2009/12/02/jfdi/ '; var disqus_container_id = 'disqus_thread'; var facebookXdReceiverPath = 'http://danputt.com/wp-content/plugins/disqus-comment-system/xd_receiver.htm'; var DsqLocal = { 'trackbacks': [ ], 'trackback_url': 'http://danputt.com/2009/12/02/jfdi/trackback/' }; « How far are you willing to go? Search Search for: [...] [...] 10 thoughts for small businesses and startups on financial modeling (crowdspring.com) blog comments powered by Disqus var disqus_url = ‘http://danputt.com/2009/12/02/jfdi/ ‘; var disqus_container_id = ‘disqus_thread’; var facebookXdReceiverPath = ‘http://danputt.com/wp-content/plugins/disqus-comment-system/xd_receiver.htm'; var DsqLocal = { ‘trackbacks’: [ ], ‘trackback_url’: ‘http://danputt.com/2009/12/02/jfdi/trackback/‘ }; « How far are you willing to go? Search Search for: [...]

]]> By: Cash or Accrual Basis of Accounting? Which Should You Select When Starting a Business? | Small Business Accounting http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1871 Cash or Accrual Basis of Accounting? Which Should You Select When Starting a Business? | Small Business Accounting Fri, 30 Oct 2009 13:30:15 +0000 http://blog.crowdspring.com/?p=2444#comment-1871 [...] 10 thoughts for small businesses and startups on financial modeling (crowdspring.com) [...] [...] 10 thoughts for small businesses and startups on financial modeling (crowdspring.com) [...]

]]> By: Thoughts On Small Business Financial Planning - Business Opportunities Weblog http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1869 Thoughts On Small Business Financial Planning - Business Opportunities Weblog Tue, 13 Oct 2009 16:55:43 +0000 http://blog.crowdspring.com/?p=2444#comment-1869 [...] CrowdSpring: Remember that you are presenting a LOT of very complex information and it should be your goal to make that information as digestible as possible. Use charts to display growth and make sure you are visually consistent with these (pick a color scheme!). Use nice, clean, well laid out tables to present historical data. Color code for readability and clarity. Have friends look it over and give you their feedback on your visual presentation. [...] [...] CrowdSpring: Remember that you are presenting a LOT of very complex information and it should be your goal to make that information as digestible as possible. Use charts to display growth and make sure you are visually consistent with these (pick a color scheme!). Use nice, clean, well laid out tables to present historical data. Color code for readability and clarity. Have friends look it over and give you their feedback on your visual presentation. [...]

]]> By: Financial Statement Analysis | Small Business Accounting http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1867 Financial Statement Analysis | Small Business Accounting Sun, 11 Oct 2009 11:03:10 +0000 http://blog.crowdspring.com/?p=2444#comment-1867 [...] 10 thoughts for small businesses and startups on financial modeling (crowdspring.com) [...] [...] 10 thoughts for small businesses and startups on financial modeling (crowdspring.com) [...]

]]> By: Mike http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1864 Mike Thu, 01 Oct 2009 13:31:41 +0000 http://blog.crowdspring.com/?p=2444#comment-1864 Hi guys, thanks for the feedback! @Christopher - This is the entire point of building a model for this. It allows entrepreneurs to look at various scenarios of revenue and costs, project break-even, and determine capital requirements. It also allows them a tool for weighing a venture against the opportunity costs and to arrive at a rational, defendable set of assumptions. @Robbie Hoffner - You are absolutely correct that IRR is the term used by most investors, but in ib actuality the two are interchangeable. We use the term "Compound Actual Growth Rate" (CAGR) when speaking about this as it is (semantically) an easier concept for folks to get their heads around and, in fact, returns the same number. The difference is that IRR is typically a target set by potential investors, and CAGR is the result of the actual analysis one can perform using the numbers generated by a good projection model. @ Team The Rise To The Top - Glad you enjoyed it! THE BWML approach is one that can be easily digested and is highly defensible when pitching to skeptical investors. It shows that the entrepreneur has considered a range of possible outcomes and justifies the use of the "most likely" scenario in generating the rest of the projections. Hi guys, thanks for the feedback!
@Christopher – This is the entire point of building a model for this. It allows entrepreneurs to look at various scenarios of revenue and costs, project break-even, and determine capital requirements. It also allows them a tool for weighing a venture against the opportunity costs and to arrive at a rational, defendable set of assumptions.

@Robbie Hoffner – You are absolutely correct that IRR is the term used by most investors, but in ib actuality the two are interchangeable. We use the term “Compound Actual Growth Rate” (CAGR) when speaking about this as it is (semantically) an easier concept for folks to get their heads around and, in fact, returns the same number. The difference is that IRR is typically a target set by potential investors, and CAGR is the result of the actual analysis one can perform using the numbers generated by a good projection model.

@ Team The Rise To The Top – Glad you enjoyed it! THE BWML approach is one that can be easily digested and is highly defensible when pitching to skeptical investors. It shows that the entrepreneur has considered a range of possible outcomes and justifies the use of the “most likely” scenario in generating the rest of the projections.

]]> By: Team The Rise To The Top http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1863 Team The Rise To The Top Thu, 01 Oct 2009 04:30:40 +0000 http://blog.crowdspring.com/?p=2444#comment-1863 Mike, great article. I especially love tip number 6 about BWML, it's always those what-if scenarios that people forget to plan for, it may seem silly but you would rather be over prepared than under prepared and blindsided when something happens. Mike, great article. I especially love tip number 6 about BWML, it’s always those what-if scenarios that people forget to plan for, it may seem silly but you would rather be over prepared than under prepared and blindsided when something happens.

]]> By: Team The Rise To The Top http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-5821 Team The Rise To The Top Thu, 01 Oct 2009 04:30:00 +0000 http://blog.crowdspring.com/?p=2444#comment-5821 Mike, great article. I especially love tip number 6 about BWML, it's always those what-if scenarios that people forget to plan for, it may seem silly but you would rather be over prepared than under prepared and blindsided when something happens. Mike, great article. I especially love tip number 6 about BWML, it’s always those what-if scenarios that people forget to plan for, it may seem silly but you would rather be over prepared than under prepared and blindsided when something happens.

]]> By: Robbie Hoffner http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1862 Robbie Hoffner Tue, 29 Sep 2009 22:51:09 +0000 http://blog.crowdspring.com/?p=2444#comment-1862 Mike - great article. These are all the key points I stress to the entrepreneurs that I help with financial modeling and forecasting for capital formation. One nitpick - CAGR as a term is typically used only for Revenue and Expense items to describe their growth over time. Sophisticated investors think about the performance of their investments using Internal Rate of Return (IRR). The calculations get you to the same value - its just important to use the right terminology in the right context. Other than that, your points provide a great starting point but serious entrepreneurs should really work with experienced financial professionals to make sure their numbers make sense. Raising capital is hard enough without throwing up a potential roadblock like a poorly constructed financial model. Please visit my website at www.proformafinance.com if you would like more information and help with your financial modeling needs. Thanks, Robbie Hoffner Founder & Principal Pro Forma Finance Mike – great article. These are all the key points I stress to the entrepreneurs that I help with financial modeling and forecasting for capital formation. One nitpick – CAGR as a term is typically used only for Revenue and Expense items to describe their growth over time. Sophisticated investors think about the performance of their investments using Internal Rate of Return (IRR). The calculations get you to the same value – its just important to use the right terminology in the right context. Other than that, your points provide a great starting point but serious entrepreneurs should really work with experienced financial professionals to make sure their numbers make sense. Raising capital is hard enough without throwing up a potential roadblock like a poorly constructed financial model. Please visit my website at http://www.proformafinance.com if you would like more information and help with your financial modeling needs.

Thanks,

Robbie Hoffner
Founder & Principal
Pro Forma Finance

]]> By: Robbie Hoffner http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-5820 Robbie Hoffner Tue, 29 Sep 2009 22:51:00 +0000 http://blog.crowdspring.com/?p=2444#comment-5820 Mike - great article. These are all the key points I stress to the entrepreneurs that I help with financial modeling and forecasting for capital formation. One nitpick - CAGR as a term is typically used only for Revenue and Expense items to describe their growth over time. Sophisticated investors think about the performance of their investments using Internal Rate of Return (IRR). The calculations get you to the same value - its just important to use the right terminology in the right context. Other than that, your points provide a great starting point but serious entrepreneurs should really work with experienced financial professionals to make sure their numbers make sense. Raising capital is hard enough without throwing up a potential roadblock like a poorly constructed financial model. Please visit my website at www.proformafinance.com if you would like more information and help with your financial modeling needs. Thanks, Robbie Hoffner Founder & Principal Pro Forma Finance Mike – great article. These are all the key points I stress to the entrepreneurs that I help with financial modeling and forecasting for capital formation. One nitpick – CAGR as a term is typically used only for Revenue and Expense items to describe their growth over time. Sophisticated investors think about the performance of their investments using Internal Rate of Return (IRR). The calculations get you to the same value – its just important to use the right terminology in the right context. Other than that, your points provide a great starting point but serious entrepreneurs should really work with experienced financial professionals to make sure their numbers make sense. Raising capital is hard enough without throwing up a potential roadblock like a poorly constructed financial model. Please visit my website at http://www.proformafinance.com if you would like more information and help with your financial modeling needs.

Thanks,

Robbie Hoffner
Founder & Principal
Pro Forma Finance

]]> By: Christopher, blog commenting service http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1861 Christopher, blog commenting service Tue, 29 Sep 2009 11:16:56 +0000 http://blog.crowdspring.com/?p=2444#comment-1861 It would be a good idea for small technology firms, especially start-ups, to calculate the total cost of ownership (TCO) and the prospects they have for generating income before they make ventures. It would be a good idea for small technology firms, especially start-ups, to calculate the total cost of ownership (TCO) and the prospects they have for generating income before they make ventures.

]]> By: Christopher, blog commenting s http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-5819 Christopher, blog commenting s Tue, 29 Sep 2009 11:16:00 +0000 http://blog.crowdspring.com/?p=2444#comment-5819 It would be a good idea for small technology firms, especially start-ups, to calculate the total cost of ownership (TCO) and the prospects they have for generating income before they make ventures. It would be a good idea for small technology firms, especially start-ups, to calculate the total cost of ownership (TCO) and the prospects they have for generating income before they make ventures.

]]> By: Runescape Range Pure Guide | Play Computer Games Online http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1860 Runescape Range Pure Guide | Play Computer Games Online Tue, 29 Sep 2009 07:38:54 +0000 http://blog.crowdspring.com/?p=2444#comment-1860 [...] 10 thoughts for small businesses and startups on financial modeling (crowdspring.com) [...] [...] 10 thoughts for small businesses and startups on financial modeling (crowdspring.com) [...]

]]> By: Mike http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1859 Mike Mon, 28 Sep 2009 22:52:09 +0000 http://blog.crowdspring.com/?p=2444#comment-1859 @Christi - thanks for the note and the comments! You are absolutely right: take your time, do your research, and be as thorough as you can. In the long run, your homework and preparation will pay off. Good luck with the new venture! @Christi – thanks for the note and the comments! You are absolutely right: take your time, do your research, and be as thorough as you can. In the long run, your homework and preparation will pay off. Good luck with the new venture!

]]> By: 10 thoughts for small businesses and startups on financial … PV online http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1858 10 thoughts for small businesses and startups on financial … PV online Mon, 28 Sep 2009 18:25:30 +0000 http://blog.crowdspring.com/?p=2444#comment-1858 [...] more here:  10 thoughts for small businesses and startups on financial … By admin | category: present value | tags: business, cash-flows, correct-ways, [...] [...] more here:  10 thoughts for small businesses and startups on financial … By admin | category: present value | tags: business, cash-flows, correct-ways, [...]

]]> By: Christi http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1856 Christi Mon, 28 Sep 2009 14:32:37 +0000 http://blog.crowdspring.com/?p=2444#comment-1856 Starting to get intot he meat and potatoes of my small shop. It's scary to think it might not work and am so tempted to just start and see what happens. Hopped over here just for some voice of reason cause I knew you'd have something grounding to say. Thanks! Anything worth having is worth waiting/working towards. Also, thanks for all your practical help, too. Much appreciated!! Starting to get intot he meat and potatoes of my small shop. It’s scary to think it might not work and am so tempted to just start and see what happens. Hopped over here just for some voice of reason cause I knew you’d have something grounding to say. Thanks! Anything worth having is worth waiting/working towards. Also, thanks for all your practical help, too. Much appreciated!!

]]> By: Christi http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-5818 Christi Mon, 28 Sep 2009 14:32:00 +0000 http://blog.crowdspring.com/?p=2444#comment-5818 Starting to get intot he meat and potatoes of my small shop. It's scary to think it might not work and am so tempted to just start and see what happens. Hopped over here just for some voice of reason cause I knew you'd have something grounding to say. Thanks! Anything worth having is worth waiting/working towards. Also, thanks for all your practical help, too. Much appreciated!! Starting to get intot he meat and potatoes of my small shop. It’s scary to think it might not work and am so tempted to just start and see what happens. Hopped over here just for some voice of reason cause I knew you’d have something grounding to say. Thanks! Anything worth having is worth waiting/working towards. Also, thanks for all your practical help, too. Much appreciated!!

]]> By: Twitter Trackbacks for 10 thoughts for small businesses and startups on financial modeling — crowdSPRING Blog [crowdspring.com] on Topsy.com http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1855 Twitter Trackbacks for 10 thoughts for small businesses and startups on financial modeling — crowdSPRING Blog [crowdspring.com] on Topsy.com Mon, 28 Sep 2009 11:58:13 +0000 http://blog.crowdspring.com/?p=2444#comment-1855 [...] 10 thoughts for small businesses and startups on financial modeling — crowdSPRING Blog blog.crowdspring.com/2009/09/28/10-thoughts-for-small-businesses-and-startups-on-financial-modeling – view page – cached ← Twitter Link Roundup #13 - Design, Small Business, Social Media And More — From the page [...] [...] 10 thoughts for small businesses and startups on financial modeling — crowdSPRING Blog blog.crowdspring.com/2009/09/28/10-thoughts-for-small-businesses-and-startups-on-financial-modeling – view page – cached ← Twitter Link Roundup #13 – Design, Small Business, Social Media And More — From the page [...]

]]> By: Startup Revenue Models http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1854 Startup Revenue Models Mon, 28 Sep 2009 11:53:01 +0000 http://blog.crowdspring.com/?p=2444#comment-1854 [...] If you’re interested in more details about building a financial model, I encourage you to read Mike Samson’s post in the crowdSPRING blog – 10 thoughts for small businesses and startups on financial modeling. [...] [...] If you’re interested in more details about building a financial model, I encourage you to read Mike Samson’s post in the crowdSPRING blog – 10 thoughts for small businesses and startups on financial modeling. [...]

]]> By: Today’s Startup and Entrepreneurial Updates | CenterNetworks http://blog.crowdspring.com/2009/09/10-thoughts-for-small-businesses-and-startups-on-financial-modeling/comment-page-1/#comment-1853 Today’s Startup and Entrepreneurial Updates | CenterNetworks Mon, 28 Sep 2009 11:34:36 +0000 http://blog.crowdspring.com/?p=2444#comment-1853 [...] 10 thoughts for small businesses and startups on financial modeling – CrowdSpring [...] [...] 10 thoughts for small businesses and startups on financial modeling – CrowdSpring [...]

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