Getting Personal with Your Finances
Just because you understand the literal difference between a $500 expense and a $700 expense doesn’t mean you viscerally understand the difference between a $500,000 expense and a $700,000 expense. It takes a while to hone your instincts around these things.
Suggested Readings
Founders School || Startup CEO || Getting Personal with Your Finances || Impact Guide (PDF).
Blumberg, Matt and Hanny Hindi. “Chapter Nineteen: Making Sure There’s Enough Money in the Bank.” Startup CEO: A Field Guide to Scaling up Your Business. Wiley, 2013. 159-164. Print.
Blumberg, Matt and Hanny Hindi. “Chapter Twenty-Two: Forecasting and Budgeting.” Startup CEO: A Field Guide to Scaling up Your Business. Wiley, 2013. 181-188. Print.
Dobbs, Richard and Bill Huyett and Tim Koller. “The CEO’s Guide to Corporate Finance” McKinsey Quarterly, November 2010.
Franklin, Joyce L. Startup Wealth: The Entrepreneur’s Guide to Personal Financial Success and Long-term Security. Rubydon, 2014.
“Financial Foundations: Your Balance Sheet” – The Art of Startup Finance with Bill Reichert.
“Financial Processes: Income Statement” – The Art of Startup Finance with Bill Reichert.
“Financial Budgeting: Your Long-Term Forecast” – The Art of Startup Finance with Bill Reichert.
Questions for You
How do I remain hands-on with the financials of the business?
What events or milestones will change my costs and revenues?
Are there similar companies that have gone down a similar path? Can we compare their experience with our plans for the future?
What are the main drivers of my revenues and costs?
Tools and exercises
Create a management dashboard for your key performance metrics in “Financial Monitoring: Your Performance Metrics” with Bill Reichert