Business: The Way and the Tools Make or Break You

Was just looking for some tips on using excel and operational finance in particular
and came by this resource! =)



When running your business, one of the most oft things that I quote is "Its the business stupid!!!".

One of the benefits of going through finance and business modules in the university is that the need to be operationally profitable is drilled into you.

Indeed "Its the business stupid!!!".


What does that mean?

It really simply means that at the end of the day, your business must be a process of profit.

It should be a font, not an abyss. At least eventually. =)


In any business (and especially start-ups) there is a huge about of burn (of funds), to the point that there is a term for it:

"burn rate"

How fast is that business burning through your funds?


Is the burn justifiable? Will you run out of funds and be forced to liquidate before you actually turn a profit?


This really makes or breaks a business.


Now you might think, oh this is just for start-ups, but the truth is:


(And this brings us to another truth in business)



Business is war.

In war, resource management is one of the greatest tools a general must manage, be it soldiers tools, time, conditions.


What are the costs? the profits? The variables?


So even for a well oiled business... well it can only be well oiled if it is prepared and has its resource management all worked out.

Academics know this, SCM is one of the many attempts to try to quantify this concept.

Another way to achieve and tame the resource management beast is operational finance!

The two keywoards really sumarise its main focus:

Operational - How you do it. Your business logic.

Finance - The money side of things. Once you work your business logic a certain way. What are the associated costs and profits and does it all pan out in the end to bring you into the provebial black?

This site shows you real live examples of how operational finance is implemented, to give a better understanding of the term! Read through them, you will be better for it!

The site also has a rather good Excel guide (yes excel is ont of the most familar tools out there for working with data), you get some really good tips and tricks on how to manage your data.

Whats the use of data if you cannot make sense of it? Thats where excel comes into play. Excel allows you to visualise HOW your operational finance is doing. Are you doing alright?

As always, "Its the Business Stupid", so you got to work out what is your business?

How is your business ran on a day to day basis (operational) and are you making money (finance)? Which is the entire point of doing business is'nt it? And finally Excel allows you to actually implement this paradigm of viewing your business!

Hope this post helps, you can find more information about business tools and their uses here.


Cheers!

Its the business! Stupid!

I talked a little with my sis's bf before watching the show Bolt.


I think he wa just making conversation; we talked about how to make money from the internet. (He is a nice guy and he was just making conversation I guess)

And he was sharing about a guy who wrote an e-book and make a million or so from it.


I don't disbelieve that.


But i had a friend trying that while I was still in CHC =)


That was like 2002 or so i think.


I don't think he made it.


Well that conversation when on to tolkien and about how tolkien fought piracy.

(Long story short, he appealed to the emotional side of people, common "decency" to
support him in writing books, essentially to only by official printings... hmm he still got screwed i think... ah well)



...


What was this post about....?




Oh yah. Concept.


The concept that "inspired" me to write this post is that..

Its the business, people.


The whole, "Lets use IT(or internet) to make lotsa munny!!!" is something too often said.


What must be realised, is that it is NEVER about the IT.


But always about the business.


Is your IT really helping your business process or is it just a novelty?


There are examples of IT helping in the business.


For instance, the China Law Blog is a really good way to help the lawyer build up his social network, there are no immediate benefits yes, but it is a support in the business process of the firm.

[edit]
Oh the heavens are with me... this is from one of their posts, where they are recognised by their peers in a journal ;)

The ABA Journal (the official publication of the American Bar Association, the leading group for American lawyers, not tavern owners) recently named China Law Blog as one of the top 100 law blogs in the World. Well actually the world of American lawyer blogs, but as long as George Bush remains President, and he will through the duration of the blog election, I do not think it a stretch to say it is of "the world."
[end edit]

Or when one uses a blog as a blog shop for instance this is an entire listing of trinklets or clothing...

(No I don't shop there... I asked for the example from my sis)

However all too often, we are trying to see how we can use IT to do something strange and new.


I actually studied a module where we looked at internet businesses. I took the module soon after the dotcom bust, so it was rather enlightening. As successes were often better documented than failures. But here we are looking at failure after failure. (The reason being, these companies were originally the dotcom darlings and we were supposed to study them - again a warning that heroes today can be zeroes tomorrow)

So I can probably point out why you will fail, and I will probably be right.
(I have successfully predicted 3 IT failures, then again in any business venture, failures are more likely, so I am banker =D)



audience:So you have blathered this much but have said nothing, are you gonna be like one of those anime for girls (Shojo Anime)???



Me: I'm getting there....



So the point here is you should always consider your business.



Is it going to be workable. Does your marketing vibes tell you it is going to work. Are you overcomed by lust/stupidity for money? Are you looking through rose tinted glasses? I took a recent module on business startups and they were big on the financial report, so... Are making money, or rather when will you break even and start making munny?



Notice.



All the questions have nothing to do with IT.





So it is not about technology. Its about the business. Sure the guy wrote an ebook. But an ebook is easily copied and multiplied. What stopped the author's readers from blatant piracy? Was it some high tech encryption module(unlikely - hey DVD's are STILL getting cracked) or is it a symbiotic relationship the author has with his readers that has ABSOLUTELY nothing to do with the technology?




Technology is a sword. Wield it.


Its not how powerful the sword is. Its how you wield it.
(This sadly sounds like a reference to male genitals...)



Its a simple concept, from a simple minded person.


So puny investor. Think through your actions and think business! Do your numbers, do your due dilligence.

You owe it to yourself!




Till I am bored enough to write again.


To your success ;)

Made in China Sued in the US

This article is about manufacturers in US got sued for defective product, the products were from China. It is US focused of course, but a similar thing could happen for any other company in any country, so good juice for thought