Chapter 4

Making Money

You go into business to make money. It’s as simple as that. It doesn’t matter if you are opening a sandwich shop or starting the next Google; you can’t stay in business long if you don’t make money. Heck, even nonprofit organizations need money to survive.

This chapter deals with all aspects of making money, from the best ways to finance your business to building a financial model. You’ll learn important strategies on how to stretch your bank account, why the first dollar you earn is the hardest, and the best way to forecast your revenue in the years to come. You might prefer to drag your nails on a chalkboard than think about this stuff, but you can’t be a well-rounded entrepreneur if you don’t understand what drives your bottom line.

What’s Your Business Model?

The Best Source of Capital

How Do You Make Money?

Gross Profit Margins

Prefer Variable to Fixed

Go Bootstrap Yourself

The First Rule to Making Money

The First Dollar Is the Hardest

Bottoms Up!

Build a (Bad) Financial Model

How Much Runway?

Know Your Do-or-Die Numbers

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