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Often, entrepreneurs get too caught up with managing operations, or are too enamored by their soon-to-be launched product, that they sometimes forget to think about the basic economics of their business. Here are the two useful frameworks for business owners which are, in fact, very basic material and almost ‘doh-worthy, but I thought it was worth putting it out there anyway: Used for analysing changes in profitability A simple income statement is a very useful framework. By analysing profitability through its component factors such as revenues, COGS, operating expenses, you can quickly direct your analysis. For example, if profits are declining because of a fall in revenues, focus on marketing issues. If profits are declining because of rising expenses, you may want to look into operations and financing issues. Three ways a company can increase profits: Increase Unit Price ...

I’ve been in several board meetings as an observer on some of our portfolio companies (Disclaimer: I work with a VC fund), and thus have had the privilege of observing dynamics from both sides of the table - VC and entrepreneur. A few unifying themes that any entrepreneur in Singapore should know: 1. The VC-entrepreneur relationship is key This stems from both parties having the trust in each other to add value to the relationship, based on a mix of data points (ability to execute, domain knowledge, and above all, genuineness). Note: Different parties can do whatever it takes to get the investment agreement signed. Things can be all rosy and positive pre-deal, and quickly turn ugly post-deal. So for entrepreneurs, as much as the VC is assessing you, do make your own assessments and see who are the best partners for your business. 2. Team > Ideas Ideas will always change, it is inevitable. Given that, you will need a team that: 1) has the flexibility to recognise opportunity and change the business plan accordingly and 2) has the right skills and resources to take the business plan forward. This is typically what VCs want to see, especially for early stage companies. 3. Zero Cash Date Critical point for every entrepreneur to have front-of-mind, all the time. Track on a monthly basis, and let it be known to the key stakeholders (this includes founding team and employees). Communication of this keeps everyone aligned, and its better to track it early than later, especially at the early-stages of a company. VCs would definitely appreciate if entrepreneurs always keep this in mind, because this forms the foundation of how the entrepreneur allocates resources within the company. cialis 20mg