The Startup Finance Pyramid

07/28/2016 03:03 to watch
Was this helpful?

Finance is about more than just money and numbers. Bill builds a strategic “Finance Pyramid” to help you understand how finance underpins your goals and strategies. Through eight critical lessons Bill provides you with the tools of finance you’ll need to monitor and understand your company’s operating metrics, and, ultimately, help you turn your vision into reality.

Suggested Readings

Founders School || The Art of Startup Finance || The Startup Finance Pyramid || Impact Guide (PDF).

Berman, Karen and Joe Knight. 2008. Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers. Harvard Business Press.

Questions for You

How would I assess my financial literacy? Which of these terms do I fully understand: balance sheet, capitalization table, income statement, cash flow, operating budget, long term financial forecast, management dashboard?

Do I understand how understanding my company's "numbers" can help my team be more effective building and managing company that investors will be interested in?

Do I understand not only the basic accounting, but also the analytic aspects of finance such as: How many prospects convert to customers? How long does it take to close a sale? How many person-hours does it take to handle a problem?

Questions for Your Team

How well do we understand the financial aspects of our business? What about other things that relate to finance such as: how many prospects convert to customers? How many person-hours does it take to handle a problem?

What aspects of our business do we need to get a better handle on? Are we confident that our strategic decisions are supported by actual data? Where should we be better at monitoring and measuring our performance?

Tools and Exercises

Identify aspects of your business where you think you need better monitoring and measuring.

You may also be interested in…