Bookmark and Share

Alex Bäcker's Wiki / If you can forecast revenues, you are not innovating enough
  • If you are citizen of an European Union member nation, you may not use this service unless you are at least 16 years old.

  • You already know Dokkio is an AI-powered assistant to organize & manage your digital files & messages. Very soon, Dokkio will support Outlook as well as One Drive. Check it out today!

View
 

If you can forecast revenues, you are not innovating enough

Page history last edited by Alex Backer, Ph.D. 15 years, 4 months ago

"Wall Street has played a part in this disaster by demanding corporate profits to be consistent quarter after quarter – and punishing the inconsistent companies. This concept transformed innovative companies like General Electric (GE) into financial ones to smooth normal cycles. Few businesses that are growing and innovate can deliver consistent profits. Consistent profits are a sign of a matured company being milked by bean counters with too few new products coming to market."

     - Steven Hansen, http://seekingalpha.com/article/116410-misunderstanding-the-great-recession

 

I have often criticized VCs for the very same reason: they ask early stage, pre-product start-ups for accurate financial forecasts that are irrelevant due to the lack of data to ensure accuracy. In addition to proving futile, these exercises can distract management from the important job of doing the things that make a difference, such as innovating, designing and building products and services, and selling them.

 

Up to Entrepreneurship. 

Comments (0)

You don't have permission to comment on this page.