This is the final installment of a multi-part case study on Starbucks Corp. We previously covered the business model, profit model, unit economics, and financial statement analysis (links below). The goal for today is to create a quick-and-dirty financial projection and build an action plan for this company. Quick recap — Starbucks is a vertically integrated retailer of…
What can you learn from Netflix Q4 results? As an SMB owner (and avid student of good investments), the public markets offer an excellent source of lessons and benchmarks for us small-time pikers. Let’s take a look at Netflix Q4 results to find some nuggets of wisdom: Beyond Netflix’s impressive quarter (massive subscriber growth, outstanding…
It’s a seller’s market The typical business sale goes something like this: Not all deals go that way, but the “quick exit” ones typically do. The average sale process can take 6-12 months, but the exit planning process in front of that can take 2-3 years. Earlier this week, my partner and I attended a…
Taking the quarterly view It’s not too late to review 2024 annual financial statements. In fact, most public companies are still reporting Q4 and full year results. Like other business owners, I have a strong preference for monthly financial statements; but, with yearend in full swing, it felt like a good time to pitch the quarterly…
What’s your financial cadence? Business owners have a typical financial review process that goes something like this: Financial statement analysis is the primary tool when it comes to evaluating business performance (I’ve said this before). There’s a “what” component and a “when” component to that analysis; here’s a simple routine that should work for most…
One challenge in managing finances is the overwhelming amount of numbers and metrics available to look at. Scoreboards in professional sports generally display only the most relevant stats, and your business should do the same. How do we handle it? Stick to 6-7 key metrics with a combination of leading and lagging indicators to watch…