the balance sheet or profit & loss way of building a business

By Alok Rodinhood Kejriwal

I believe there are 2 approaches to building a business…

I think of them as the ‘Balance Sheet (B/S)’ way and the ‘Profit & Loss (P&L)’ way.

Each approach is unique, with its own advantages and disadvantages.

A business that:

Borrows money from Investors.

Spends that money on building technology, marketing, R&D, IP creation etc. Stuff that consumes money without making

money.

Spends first, earns much later.

A business that:

Begins by generating revenues from its operations almost immediately.

Spends money on salaries and other operating costs to generate revenue.

Earns revenue first, builds assets later.

I am available on alok@rodinhood.com / facebook.com/rodinhood / @rodinhood / rodinhood.com / therodinhoods.com

If you have counter arguments, opinions, views, etc., send them to me. I will be happy to review them and add them as comments/reactions to this ppt!

Special THANKS to Asha for lots of proof reading & editing