Sample Profit Projection

Standard Business Plan Financials: Projected Profit and Loss

by Tim Berry

Continuing with my series here on standard business plan financials, all taken from my Lean Business Planning site, the Profit and Loss, also called Income Statement, is probably the most standard of all financial statements. And the projected profit and loss, or projected income (or pro-forma profit and loss or pro-forma income) is also the most... Read More »

Business Plan Financials

Standard Business Plan Financials: 3 Essential Projections

by Tim Berry

Yesterday I posted here the six key financial terms every business owner or startup leader needs to know. That’s reposted from my site on Lean Business Planning. These six terms work into three essential statements (for past results) or projections (in business plans or anything referring to the future) for standard business plan financials. A... Read More »

Bar Chart with Coins

Standard Business Plan Financials: Six Key Terms

by Tim Berry

A good argument for teams in business is not having to know finance if you love sales, marketing, or product development. But you’re a business owner. You’ll run your business better if you understand the standard business plan financials. These important terms aren’t that hard to learn and understand. You owe it to yourself and... Read More »

Bar Chart

Standard Business Plan Financials

by Tim Berry

Why You Need to Know I believe these three things about startup entrepreneurs, business owners and standard business plan financials: The essential need-to-know facts about financials are very important; They are easy enough to learn; and Bankers, accountants, investors and their analysts expect you to know them and use them correctly. And here’s why, quoting... Read More »

Megan Berry Interview

Life as VP Product in a High Tech Startup

by Tim Berry

My Friday video for this week features a VP of product at a fast-growing high tech startup (business social media), in an interview describing life in one of these startups, how product evolves, and some personal reflections as well, such as a comparison of startup life in San Francisco vs. New York. She’s worked in... Read More »

stargateverysmall_1

Business Planning is not Accounting

by Tim Berry

The picture here represents the legendary Stargate, a science fictional gateway between two dimensions. There was a 1994 film starring James Spader and Kurt Russell. I often use it to illustrate the difference between planning and accounting. Planning begins today... Read More »

Simple Cash Flow Spreadsheet

A Simple Cash Flow Spreadsheet Anybody Can Use

by Tim Berry

If there’s just one formal business skill every business owner should have, it’s understanding and forecasting cash flow. It’s not intuitive because it’s not the same as profits; but it’s vital. We spend cash, not profits. It’s one of the most important pieces of every lean business plan. Here’s my recommendation for a relatively simple... Read More »

Business Plan Assumptions

The Value of Business Plan Assumptions

by Tim Berry

(This post is an excerpt from my latest book, Lean Business Planning, reprinted here with permission.) Identifying assumptions is extremely important for getting real business benefits from your business planning. Planning is about managing change, and in today’s world, change happens very fast. Assumptions solve the dilemma about managing consistency over time, without banging your... Read More »

Displacement

You Need to Understand the Business Principle of Displacement

by Tim Berry

Imagine a bucket of water full to the brim, on a table, right next to a phone and a computer. Now take a brick and drop it into that bucket. Imagine what happens. Water splashes out, right? And that’s probably bad for that phone and computer next to it. Business Principle of Displacement That simple... Read More »

Reality Check on Startup Dreams and Clichés

by Tim Berry

My Friday video for today is another TED talk, one of the best from 2015, targeting entrepreneurs, dreams, and getting things done. I call it a reality check on startup dreams, and she (Bel Pesce, from Brazil, successful entrepreneur) calls it 5 way to kill your dreams. How to kill dreams? Expect overnight success. Believe... Read More »