Archive for the “Blog” Category

Companies don’t buy things

young person buying looking at clothes to purchase

Companies don’t purchase anything. Although, we talk like they do. “We received a PO from Acme today!”. “How much business has Acme done with us YTD?” Humans purchase things. Humans buy things on behalf of the company. Humans buy things to take care of concerns they have. ” I want to perform in my job.” […]Read More

Travel light when starting up

When beginning your entrepreneurial journey, travel light. Start your business with just you and maybe one other person. Don’t assemble a team. Visit with potential customers yourself so you can learn the market. At the beginning, taking care of employees is a distraction from your exploration into what’s possible. This is the time to hone […]Read More

The MacDaddy sales metric – Sales Payback Period

One of the best gauges of your business’s ability to scale, is this metric, Sales Payback Period (SPP). SPP sets up a ratio between customer acquisition cost, and annual gross margin. Here’s an example to bring this concept home. A company sells intruder detection software on an annual subscription basis. In other words, a Saas […]Read More

On Speculation

It’s ok to speculate. That business plan in your hand. It’s a narrative about how the future will turn out. Speculation launches us into valuable conversations for action. But know that it’s speculation, not truth.Read More

The Accelerator Dilemma

The folks who run accelerators, typically require nontechnical founders to find a technical co-founder. The thinking, is that adding a coder (ideally full-stack) will allow the startup to be more nimble and iterate faster, being more responsive to obtaining product – market fit. No argument here. However, finding the right full stack dude or dudette, […]Read More

Situation

What’s your situation? What is your capacity, today, to pursue a new opportunity? If something exciting, or life-changing comes your way, can you act? Situation is composed of a number of domains. Some are obligatory. I owe money to the bank. I have a mortgage payment. I have promised my employer that I will work […]Read More

Gross Margin

Gross Margin, perhaps our favorite accounting metric here at BookWerksTM, is calculated by subtracting what your product or service cost you (Cost of Goods Sold, or COGS), from what you sell your product for (Revenue). We typically express this as a % of Revenue. For example, if you sell an item for $9 that costs […]Read More

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Finding a Bookkeeper in the Neighborhood

Finding a bookkeeping service close by to where you live and work is easy; making sure they’ll meet your needs is more difficult. In choosing any professional service, you’ll want to get a referral from someone you trust. Make sure the firm has a sound reputation, good reviews, and will provide references. Check their credentials. Ask if they provide Income Statements, Balance Sheets and Cash Flow Statements. They should manage accounts receivable and payable, post debits and credits, monitor your debt levels and apply payments, reconcile your accounts every month, provide accurate financial statements at tax time, and report on issues and variances that come up. The best firm is not the one with the most services, or the largest staff, but the one that can meet your needs within your budget. Make sure you talk with the owner before you make a commitment, and get all your questions answered.