the balance sheet or profit & loss way of building a business
Post on 17-Oct-2014
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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 [email protected] / 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