Burn rate (1): the formula

Your organisation’s burn rate is the amount of money you “burn” each month to do what you do. It’s a simple sum, but few organisations seem to keep a close eye on it. Expenses How much are you spending each month? Make sure you count everything – especially big annual expenses you need to be saving towards, or reserves you…

The switch (2)

“What am I hoping to get?” Once we’ve admitted to ourselves that we’re doing our work (at least partly) for ourselves, we can think more clearly about our motives by asking “What am I hoping to get from doing this?” And we’re probably hoping to get several things: the knowledge that we’ve helped someone, the satisfaction of a job well…

No shortage of money

There is no money shortage. It might not be where you’d like it, and there might not be people lining up to give it to you for whatever you think it would be well used for… but there’s plenty of money. Whose money? It’s usually best if the money comes directly from the people you’re serving – call them customers,…

Money: cause or symptom?

We often focus on the money, but it’s not a cause or an end in itself. It helps to think of your financial position as a symptom of faithful partnership development. Darren Wall

Resources: Seth Godin on money stuff – cashflow, price, overheads, and finding the right size

And more. This blog post is brilliant, and asks a lot of key questions about what to do when your project isn’t making money. If you haven’t already listened to Money Flows – an Akimbo episode about cashflow – it’s great. Seth talks about cashflow and payment terms, and the importance of setting up your project so that the flow…