Albert reposted this
The One Page Budget. Many things contributed to Albert’s path from cash burn to profit, but none more than simplifying the company’s budget to fit on one sheet of paper. Here’s how we did it: https://fnd.news/47DQt7C Charline Munger quipped, “I think that, every time you saw the word EBITDA, you should substitute the word bullshit earnings.” Like many companies did when capital was cheap, we confused ourselves with second-order metrics: the lifetime value of our customer was high so it was okay to lose money today; we're spending 50% of revenue on people because we're investing in the future; our adjusted EBITDA margin isn't terrible; and so on. We burned a lot of money believing this story. When we turned focus to profit, we leaned into our best skill as product builders: simplifying things. We built a budget—covering our entire complex business—to fit on a single 100 row spreadsheet. In your personal budget, you know things are good when cash goes up, and that you have a problem when cash goes down. Businesses benefit from this simple thinking too. To free ourselves from jargon at Albert, we now run core business strategy from our single page budget. Two years ago, we started a quarterly leadership meeting called the "Cash Flow Session." Each quarter, the leadership team, who has full access to company financials, brainstorms ways to increase cash flow. Sitting in a room together with a white board, thinking of ways to save money, always makes money. We relearned a lesson Munger preached for nearly a century: first, focus on making money. Read the whole story at the link above.
Love this, we recently did a survey of founders and found that the most successful ones had a budget for sales & marketing.
Embracing straightforward metrics like cash flow fosters a culture of financial responsibility and innovation. Yinon Ravid
YOUR APP SUCKS. WITHHOLDING MY MONEY FROM ME UNTIL YOU GET MORE AND MORE INFO FROM ME??? I’ve verified my identity through the app, also by sending a picture of my ID, AND by sending a selfie of me holding said ID, and your texting based customer service reps (I bet they’re bots) ARE WITHHOLDING MY HARD WARNED MONEY FROM ME UNTIL YOU GET MORE AND MORE DATA. IVE BEEN AT THIS FOR 2 DAYS. YOUR COMPANY LACKS SYMPATHY, PRIVACY, AND SENSE OF URGENCY. AND ALL REVIEWS ON APP STIRE ARE SKEWED. Five stars for a bad review? FISHY.