Homework due for today
Legend: : Participation | : Early | : PDF | : Team | : Zipped
* Read Paul Graham on Growth
* Read and learn how to design good spreadsheets. Even if you think you know how, read both of these: How to use a spreadsheet to create a simple budget and Good Spreadsheet Design. Do all the examples in Google Sheets. Deliverable: Submit the url of the google sheet with your work from the two pages. Don’t forget to make accessible by all
* Show off your knowledge of two important ideas in spreadsheets. Create a small, but meaninful example of the use of absolute and relative references, as well as a small but meaningful example of the user of the =VLOOKUP function. Deliverable: Submit the url of the google sheet with your work. Don’t forget to make accessible by all
Money
- Life blood of a business are resources
- You consume resources and you generate value
- Remember Gazintas > Gazoutas
Very basic financial modeling
- Basic terms
- Core calculation:
- Profits = Revenues - Costs
- Types of costs
- Fixed
- Variable
- Division is not always clear cut
- Fixed Costs
- Cost you have to get to the first ‘thing’
- First release? First sale? First Orange Juice Sold?
- Rent
- Communications
- Variable Costs
- Marketing expenses
- Salaries
- Raw Materials
- Independent variables
- Units sold?
- Units manuctured?
- Number of employees?
- Number of customers?
- Target new customers per month
‘Programming’
- Learn to be very comfortable with a spreadsheet
- Google Sheets is fine, excel is fancier
Basic Example Financial Model
- Lemonade Stand 2.0
- 1 stand, staffed by 2 kids
- Three sizes of lemonade, S, M, L
- What are all the sources of revenue?
- What are all the costs?
- Lets lay it out in excel
More complicated example
- Simlistic Paid Engine of Growth
- More complicated: Stick Engine of Growth
Discussion about this course
- Take 5 minutes to think and write down some notes
- A friend asks if he/she should take this course. Would you recommend it? What would you say students need to do if they want to do well in the course?
- If you were to take this course again, would you do anything differently? What and why?
- What’s the relationship between natural ability and hard work? Can you still learn things for which you don’t think you have much natural ability? Can hard work overcome natural ability deficits?