Comments on: Medieval Financial Techniques in the 21st Century? http://blog.softlayer.com/2009/medieval-financial-techniques-in-the-21st-century/ A Behind the Scenes Look at the Best Hosting Provider in the World Wed, 22 May 2013 17:40:38 +0000 hourly 1 http://wordpress.org/?v=3.4.1 By: Eric Caldwell http://blog.softlayer.com/2009/medieval-financial-techniques-in-the-21st-century/comment-page-1/#comment-1349 Eric Caldwell Mon, 06 Jul 2009 15:08:27 +0000 http://theinnerlayer.softlayer.com/?p=756#comment-1349 Just got around to reading this blog. Good stuff... That's the approach we're taking with our young/new business. Instead of using budgets, we're using the Profoma (financial model for each product we have) as our operating model for P&L. This allows us to keep an organic model which can change with market conditions. What it helps us to do is see where profits are happening and adjust those budgets up if needed and lower others for products which may be end of life or models that didn't work as well as planned. The profoma approach also forces us to follow the business plan (which is essentially the profoma) we write for each program/campaign we come up with. After decades in corporate America, if each group in the company were forced to take this approach instead of budgeting, they would have been way more profitable. Just got around to reading this blog. Good stuff… That’s the approach we’re taking with our young/new business. Instead of using budgets, we’re using the Profoma (financial model for each product we have) as our operating model for P&L. This allows us to keep an organic model which can change with market conditions.

What it helps us to do is see where profits are happening and adjust those budgets up if needed and lower others for products which may be end of life or models that didn’t work as well as planned.

The profoma approach also forces us to follow the business plan (which is essentially the profoma) we write for each program/campaign we come up with.

After decades in corporate America, if each group in the company were forced to take this approach instead of budgeting, they would have been way more profitable.

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