Comments on: 10 Business Fundamentals http://timberry.bplans.com/2008/12/10-business-fundamentals.html Tim Berry on business planning, starting and growing your business, and having a life in the meantime Sat, 21 Nov 2009 17:26:20 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Tim Berry http://timberry.bplans.com/2008/12/10-business-fundamentals.html/comment-page-1#comment-364 Tim Berry Fri, 12 Dec 2008 18:38:57 +0000 http://timberry.bplans.com/2008/12/10-business-fundamentals.html#comment-364 <p>Frederic, re #7, (and thanks for asking) the importance of cash flow is before, during, and after the current credit crisis. </p> <p>Note the "not intuitive" part of that is very important. We tend to focus on profits, assuming intuitively that with profits, we'll have cash. However, profits are an accounting concept that is sometimes radically different from cash in the bank. That difference gets a lot of people in trouble. Tim.</p> Frederic, re #7, (and thanks for asking) the importance of cash flow is before, during, and after the current credit crisis.

Note the "not intuitive" part of that is very important. We tend to focus on profits, assuming intuitively that with profits, we'll have cash. However, profits are an accounting concept that is sometimes radically different from cash in the bank. That difference gets a lot of people in trouble. Tim.

]]> By: Frederic Abramson http://timberry.bplans.com/2008/12/10-business-fundamentals.html/comment-page-1#comment-363 Frederic Abramson Fri, 12 Dec 2008 17:06:03 +0000 http://timberry.bplans.com/2008/12/10-business-fundamentals.html#comment-363 <p>Regarding item #7, are you alluding to the credit crisis or something else? </p> Regarding item #7, are you alluding to the credit crisis or something else?

]]> By: Sheryl Schuff, CPA http://timberry.bplans.com/2008/12/10-business-fundamentals.html/comment-page-1#comment-362 Sheryl Schuff, CPA Fri, 12 Dec 2008 05:08:40 +0000 http://timberry.bplans.com/2008/12/10-business-fundamentals.html#comment-362 <p>RE: #3 Yes, planning is important, but beware of getting too attached to outcomes. One of the greatest strengths of small business owners can be their ability to be flexible and make rapid changes when market conditions shift.</p> <p>Don't invent red tape for yourself. Remember that a plan is just a plan.</p> RE: #3 Yes, planning is important, but beware of getting too attached to outcomes. One of the greatest strengths of small business owners can be their ability to be flexible and make rapid changes when market conditions shift.

Don't invent red tape for yourself. Remember that a plan is just a plan.

]]> By: Tim Berry http://timberry.bplans.com/2008/12/10-business-fundamentals.html/comment-page-1#comment-361 Tim Berry Thu, 11 Dec 2008 23:07:00 +0000 http://timberry.bplans.com/2008/12/10-business-fundamentals.html#comment-361 <p>Richard: interesting question, because that displacement problem does apply to work/life balance too; but no, in this case, in this post, I was referring strictly to business, and business strategy development in the real world. </p> <p>In a strictly business context, we want to do everything, but we can't; because of displacement, it doesn't work. Sometimes we have to realize that we're finite -- and I'm talking business here, just business -- and we can't do everything. </p> <p>I've seen many times how companies can improve their strategy and actual business performance by recognizing the principal of displacement, and, therefore, not trying to do more than they can actually do. Resources -- time, money, people, etc. -- are finite. </p> <p>Actually I posted more on displacement on this blog in an earlier post: <a href="http://blog.timberry.com/2006/02/why_dont_we_tal.html" rel="nofollow">http://blog.timberry.com/2006/02/why_dont_we_tal.html</a></p> Richard: interesting question, because that displacement problem does apply to work/life balance too; but no, in this case, in this post, I was referring strictly to business, and business strategy development in the real world.

In a strictly business context, we want to do everything, but we can't; because of displacement, it doesn't work. Sometimes we have to realize that we're finite — and I'm talking business here, just business — and we can't do everything.

I've seen many times how companies can improve their strategy and actual business performance by recognizing the principal of displacement, and, therefore, not trying to do more than they can actually do. Resources — time, money, people, etc. — are finite.

Actually I posted more on displacement on this blog in an earlier post: http://blog.timberry.com/2006/02/why_dont_we_tal.html

]]> By: Rob Lindberg http://timberry.bplans.com/2008/12/10-business-fundamentals.html/comment-page-1#comment-360 Rob Lindberg Thu, 11 Dec 2008 17:19:39 +0000 http://timberry.bplans.com/2008/12/10-business-fundamentals.html#comment-360 <p>Wow. This is great!</p> Wow. This is great!

]]> By: Doug http://timberry.bplans.com/2008/12/10-business-fundamentals.html/comment-page-1#comment-359 Doug Thu, 11 Dec 2008 15:01:41 +0000 http://timberry.bplans.com/2008/12/10-business-fundamentals.html#comment-359 <p>Now there's a list to hang your hat on!</p> Now there's a list to hang your hat on!

]]> By: Richard http://timberry.bplans.com/2008/12/10-business-fundamentals.html/comment-page-1#comment-358 Richard Thu, 11 Dec 2008 13:39:37 +0000 http://timberry.bplans.com/2008/12/10-business-fundamentals.html#comment-358 <p>Interesting point on #10. Are you referring to a work/life balance or something else? Please elaborate.</p> Interesting point on #10. Are you referring to a work/life balance or something else? Please elaborate.

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