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I understand business plans, but balance sheets? It seems like you'd want to know the financial picture of a company. What else to you look at to, even at the most basic level, determine if the startup is going to be able to pay it's AWS bill and payroll that month?
I understand business plans, but balance sheets? It seems like you'd want to know the financial picture of a company. What else to you look at to, even at the most basic level, determine if the startup is going to be able to pay it's AWS bill and payroll that month?
Software businesses have one balance sheet item: cash.
If my software company's treasury gains were realized it would make up almost a third of our revenue.
Though I suppose a case could be made that this would make us a holding company with a cash-flowing SaaS, and not actually a "software company"
B) This isn't something to be proud of, and certainly not something others should emulate. Ignorance isn't what makes you successful. (likewise, neither is millions of data points).
c) Business plans and balance sheets are still very useful and applicable, and fair to say they aren't everything.
How?
Earlier quoted context omitted.
Software businesses have one balance sheet item: cash.
That's not true. If my software company's treasury gains were realized it would make up almost a third of our revenue. Though I suppose a case could be made that this would make us a holding company with a cash-flowing SaaS, and not actually a "software company"
Founder: So we’re doing this rad new architecture-
Paulg: In Lisp. It’s in Lisp, right?
Founder: Huh, fuck no, it’s 2022, dude-
Paulg: (frowning) Out. Thumbs down.
I understand business plans, but balance sheets? It seems like you'd want to know the financial picture of a company. What else to you look at to, even at the most basic level, determine if the startup is going to be able to pay it's AWS bill and payroll that month?
Why does it matter? You are changing the financial picture, probably by an order of magnitude or more. The question should be what the company will look like after the investment, not before.