Reserves

It’s good to have some. With physical items, it’s easy to calculate the optimal level of reserves. We use stock turn-over, catastrophic loss or risk tolerances to determine adequate levels. With non-physical resources, science is much less exact. How resilient should we be when the business just isn’t working? How long do we keep training […]

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Start-up Finances

Phase 1: More energy (money) is expended than what is replenished by income. The budget runs on deficits, usually, founder salaries are not paid in full. (Founders should plan for this in advance.) Additional income funds faster expansion, not higher salaries. Phase 2: Budget surplus happens! You are able to meet all business obligations and […]

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Auxiliary Power

It’s the extra power source for our business. Like a car battery. It does not supply the power to keep the car going, it ignites the reaction for the primary source to take over. When we start a business this power is sourced in many different ways. Business Incubation, friends and family funds, consultants and […]

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