Pretty cool post for someone watching Shark Tank (India) these terms are thrown around a lot and I often wanted to pause formulate the definition in simple terms which you did for me.
Probably you should've started the post with a hypothetical business in mind and then apply the concept as you read. I did this after bullet 3 or 4 and imagined a "Samosa business". So it was easy to visualize everything, like COGS == cost of raw materials for making samosa, CapEx == buying kitchen utensils, EBITDA == profit (ignoring the interest I pay on the money borrowed from the bank), etc
Great and really important post.
And I’ll recommend a book, because that’s what I do 🙂.
“Financial Intelligence for Entrepreneurs” by Karen Berman and Joe Knight.
If you’re a manager at a startup, this is a must read.
If you’re a founder, this is a must read.
If you’re a manager at a FAANG, this is a must read.
If you’re … you get the point.
Thanks!! Have it in my list, bumped higher, I thought it's more relevant to executive positions :)
Really loved The Personal MBA, read about your recommendation.
Pretty cool post for someone watching Shark Tank (India) these terms are thrown around a lot and I often wanted to pause formulate the definition in simple terms which you did for me.
Probably you should've started the post with a hypothetical business in mind and then apply the concept as you read. I did this after bullet 3 or 4 and imagined a "Samosa business". So it was easy to visualize everything, like COGS == cost of raw materials for making samosa, CapEx == buying kitchen utensils, EBITDA == profit (ignoring the interest I pay on the money borrowed from the bank), etc
Wow that's actually a great idea, I wish I had thought of it myself :)