Upload
chris-j-snook
View
331
Download
0
Embed Size (px)
Citation preview
Key Categories for your P&L
Category Inputs Things to Consider/Monitor
Revenue Sources Recurring, One-Time, Installment, Subscription, Royalty, etc
Do you have a healthy Revenue/Profit Center mix i.e. LinkedIn or are you a 1 trick pony?
COGS Merchant Fees, Sales Commissions, Materials/Ingredients, Royalties
Less is better if you can design it that way
Gross Profit This is your usable cash (Revenue doesn’t matter)
Divide your SG&A total/GP% to understand your breakeven (i.e. $50,000 per month in SGA/.75= Breakeven of $66,667 per month Revenue)
SG&A Salaries, fixed overhead, insurance, etc. Keep it lean
EBITDA This is your excess cash flow and operating margin
You bootstrap from this number and create your reserves or organic growth line from here
Costs in the Startup World
Managing costs is really managing opportunity,
constraints, and accretive activities.
Bottom’s UP
• DO Address the unit economic
value of your offer and how
much it costs, converts, and
yields and what it takes to get
one.• DON’T project market size and
the percentage you think you
can capture.
Solve Really Big Problems Better
• Can we solve “_____” problem in a new way?• Can we get enough people to pay us to solve it for
them?• Can we get to economies of scale quickly enough?• What does it cost when not at scale and is it investable?• Will we pave a new road that we can “own” or merely
cut down the heavy brush for a future competitor to
speed past us?
Revenue
“Revenue solves most problems over time because it buys you time; and although revenue is a great validator it can be worthless when costs are un-managed”~CJS
Costs
“Competition is the keen cutting edge of business,
always shaving away at costs.” ~Henry Ford
“In life, the first thing you must do is decide what you
really want. Weigh the costs and the results. Are the
results worthy of the costs? Then make up your mind
completely and go after your goal with all your might.”
~Alfred Montapert
Profits
“A business absolutely devoted to service will have only
one worry about profits. They will be embarrassingly
large.” Henry Ford
Remember: Numbers are SensitiveCHALLENGE YOUR ASSUMPTIONS MULTIPLE WAYS…TEST, REPEAT, TWEAK, and MASTER THIS!!!!!
FIND ME @chrisjsnook
And www.chrisjsnook.comSlides available at
www.slideshare.net/chrisjsnook