Accounting for the Numberphobic: A Survival Guide for Small Business Owners
You can charge recurring revenue; after all, nobody wants to work with obsolete data. (This is harder in the early days, not because of lack of buyer appetite, but because your update cadence probably isn’t good enough.)
Abraham Thomas • The Economics of Data Businesses
Inventories are especially important to watch in manufacturing and retail firms, and their value on the balance sheet should be taken with a grain of salt. Because of the way inventories are accounted for, their liquidation value may very well be a far cry from their value on the balance sheet. Use your common sense when judging this:
Pat Dorsey • The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market
Assets that describe your economic model. These should describe the value your company receives from customers, the cost of creating that value, and the ways in which you measure that value. Examples include: Business flywheelsValue stream mapsWardley mapsRetention/churn modelsCustomer acquisition modelsCustomer lifetime value modelsProjected balan... See more
Martin Fowler • Bottleneck #03: Product v Engineering
Value is determined by the amount, timing, and riskiness of a firm’s future cash flows, and these are the three items you should always be thinking about when deciding how much to pay for a stock. That’s all it really boils down to.