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Business Plan Development: Know your Finances

Strategy Driven

Differentiate between fixed costs, such as rent and payroll, and variable costs, such as advertising and delivery. Develop a cash-flow statement. Then work out your liabilities or debts – the bills for suppliers, finance and loan repayments. Create an expenses budget. The breakeven point.

Finance 10
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How Do I Start A Small Business?

Strategy Driven

Describing the offerings of your services, the product life cycles, intellectual properties as well as the research and development procedures of your business. Accurately Evaluating Your Finances and Funding Your Business. When you think of starting a small business, it is a sure event that there will be an associated cost or price.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

Such a strategy limits an early venture's funding in order to force the business to develop a profitable business model and then invests heavily in growth once such a model is identified — Christensen terms such investments "good money" for incubating growth businesses and extols the strategy for three reasons.

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Is Rooftop Solar Finally Good Enough to Disrupt the Grid?

Harvard Business Review

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. This story of disruption should feel familiar.

Energy 8
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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

Ageas contributes its expertise in insurance product design, marketing, finance, and risk management, while the partner, often a well-embedded local financial institution, contributes its customer portfolio, distribution channel, brand, and relationships. They also took an equity stake in ASML of 15%, 5%, and 3%, respectively.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

The outsiders provide new blood in support functions such as finance, legal, or administration. Decisive actions are required to tackle the factors that prompted the spin-off in the first place, which in many cases are underperformance and/or a lack of strategic fit leading to chronic underinvestment in the development of the business.

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Does Your Startup Have a Spending Strategy?

Harvard Business Review

These spending choices require tradeoffs, so entrepreneurs must first develop a strategy for allocating limited resources across a wide range of available options. So not only were the current fees too weak to support his fixed costs, but future clients were turned off by his apparently excessive tastes.