The Balance Sheet OR Profit & Loss way of building a business.

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By Alok Rodinhood Kejriwal

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Transcript of The Balance Sheet OR Profit & Loss way of building a business.

Page 1: The Balance Sheet OR Profit & Loss way of building a business.

By Alok Rodinhood Kejriwal

Page 2: The Balance Sheet OR Profit & Loss way of building a business.

I believe there are 2 approaches to building a business…

I think of them as the ‘Balance Sheet (B/S)’ way and the ‘Profit & Loss (P&L)’ way.

Each approach is unique, with its own advantages and disadvantages.

Page 3: The Balance Sheet OR Profit & Loss way of building a business.

A business that:

Borrows money from Investors.

Spends that money on building technology, marketing, R&D, IP creation etc. Stuff that consumes money without making

money.

Spends first, earns much later.

Page 4: The Balance Sheet OR Profit & Loss way of building a business.

A business that:

Begins by generating revenues from its operations almost immediately.

Spends money on salaries and other operating costs to generate revenue.

Earns revenue first, builds assets later.

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I am available on [email protected] / facebook.com/rodinhood / @rodinhood / rodinhood.com / therodinhoods.com

If you have counter arguments, opinions, views, etc., send them to me. I will be happy to review them and add them as comments/reactions to this ppt!

Special THANKS to Asha for lots of proof reading & editing