Airbnb’s Post

As a 26 yo Airbnb GM, FINANCE was a HEAD-PAIN. Now BOOSTS my Brain. The Cure? Focusing on the basics. As a rookie GM, finance was ALIEN TERRITORY to me: • Metrics flew around. • No translations provided. • Too proud to ask. ALIGNING teams toward impacting a specific METRIC was a HEADEACHE. Over 12 years, I stepped up my FINANCE-GAME: • 2 unicorns scaled in Italy (Airbnb, Taxfix) • 8 digits budgets built & executed • 10s of millions in revenues I distilled the 20% of FINANCE know-how giving 80% of the RESULTS. You don’t need 12 YEARS to figure this out: • Master these SIX • Forget the REST. You'll be in the GM FAST-LANE. Here the Six FINANCE Basics you Need to ALIGN Teams and MOVE the Needle FASTER. 👉 Check the PRESENTATION below to learn how to CALCULATE them and why they are USEFUL. __________________________ 1. COST PER ACTION (CPA): • PRO TIP: If only Marketing team focuses on this, you are def working in silos. Product heavily impacts this. 2. CUSTOMER ACQUISITION COSTS (CAC): • PRO TIP: Don't silo this to the product team; acquisition and operations can affect CAC significantly. 3. AVERAGE REVENUE PER PAYING CUSTOMER(ARPPU): • PRO TIP: Pricing strategy can help increase ARPPU. But marketing and product teams need to prioritize it to make an impact. 4. RETURN ON INVESTMENT (ROI): • PRO TIP: Align with e-staff on ROI expectations before crafting proposals to avoid mismatch. 5. LIFETIME VALUE (LTV): • PRO TIP: Swap ROI for LTV to better capture return over time. 6. PAYBACK PERIOD (PP): • PRO TIP: Check E-staff expectations. Reduce it to unlock higher investment levels. __________________________ GET STARTED NOW: • How are these METRICS defined at your COMPANY? • Create a basic financial MODEL • Explore INTERACTIONS LET'S TALK: • Has FINANCE been a PAIN to you? • DISAGREE with my LIST? Leave a COMMENT! #fianance #basics #metrics #crossfunctional #leadership #startups

Whether it’s been 20 years–or 2 years…you might be thinking about what comes next. 💭 Founder/owners don’t always stay with their business. Some stay to see their ventures grow through long-term goals. Others are eager to move on quickly. Neither is inherently right or wrong. What IS A PROBLEM is founder/owners who feel STUCK with their business. It’s not uncommon to feel like the business can’t be successful without direct involvement from the founder/owner–usually at the helm of the ship as the CEO. But there are also plenty of examples of founders who have overstayed their welcome. 👀Travis Kalanick at Uber… 👀 Adam Neumann at WeWork… 👀 Andrew Mason at Groupon… Every founder/owner needs to find their own sweet spot, the point when they both WANT and NEED to step away. That’s why we call it an #exitstrategy. Whether you are ready for change now or you are looking ahead–your exit strategy can help you find the right timing and take the right steps now to increase valuation, meet financial and legal obligations, manage stakeholders' expectations, and find the right successor. If you’re a founder/owner…you need an exit strategy because the day will come when you’re ready to move on. 💯 #SMB #businessgrowth #businessadvisory

General Atlantic, an investment firm with stakes in Facebook and Airbnb, has confidentially filed for an IPO, eyeing a potential listing next year depending on market conditions. This move serves as a significant indicator of investor sentiment in the alternative asset management sector, particularly in a shifting debt landscape. Holding $77 billion in assets, General Atlantic's decision to file for an IPO marks a strategic shift, while also keeping open the possibility of continuing as a private entity for an extended period. #Finance #Investment #IPO #MarketTrends #GeneralAtlantic #FirstCover

Business Operations, Chief of Staff, and VC Platform roles are more similar than you think. They all combine strategy and execution, involve working cross-functionally, and focus on building and maintaining processes. Yet they each have their nuances - I wrote a piece breaking down my experience in each of these roles while highlighting their similarities. Check it out here: https://buff.ly/46PtS96

The Rise and Fall of “Wework” or the Rise and Fall of a business model? Most likely not. Only time will tell. However, what time tells every time is that Mismanagement, Conflict of Interest, and Lack of adequate board oversight do not only demolish an IPO but ultimately destroy value and a complete “success story"…like Always! #wework #wecrash #riseandfall #businessmodel #mismanagement #governance #riskmanagement

💼 Hey Founders, when was the last time you really looked at your balance sheet? In my years of working with startups, I've seen too many get hung up on their P&L and forget to give their balance sheet the attention it deserves. The balance sheet is not just 'accounting stuff' — it tells the story of your company's financial backbone. And sometimes, that story is the difference between a fairy tale and a reality check. Take these two examples: 🚀 WeWork's IPO stumble in 2019: Those balance sheets revealed a lot. Packed with long-term lease commitments, they painted a picture of a future where profit looked like a distant dream. You remember how that IPO went down… 🚗 Uber's IPO in 2019: Big on assets, sure, but the debts?! That huge deficit was like a billboard announcing "We're not making money!" to investors, leaving its market debut valuation skidding below expectations. So, what’s your balance sheet saying about your business? Here are 5 areas to find answers: 1️⃣ Monitor Payables & Receivables for cash flow health. 2️⃣ Decode the narrative in the share premium. 3️⃣ Analyze company gearing for strategic financing. 4️⃣ Check stock days to maintain product relevance. 5️⃣ Explore often-overlooked balance sheet areas for deeper insights. 🤔 Question for You: When was the last time you took a good look at your balance sheet, beyond the obvious? #BalanceSheetInsights #FinancialWisdom #StartupFinance #EquityStory #CashFlowManagement

I wrote Sept 4, 2019 that the company’s business model was also a mess. “In some ways, WeWork is like a bank WeWork operates much like a bank that’s funding long-term, illiquid investments with overnight repos and checking account deposits. That’s because WeWork says it currently leases a significant majority of its locations under long-term leases that, with very limited exceptions, do not contain early termination provisions. The company’s obligations to landlords under these agreements extend for periods that significantly exceed the length of its membership agreements with its members, it says, and those may be terminated by members upon as little notice as one calendar month. If an economic downturn results in customers pulling out, WeWork will still have to pay for those leases. The liabilities will stay on its balance sheet, are not easily liquidated, use up cash and could drag on its financial metrics indefinitely.” https://lnkd.in/griKeV9v

SPAC Feed: Here’s how much WeWork co-founder Adam Neumann made before the company’s bankruptcy  CNBC Source: Here’s how much WeWork co-founder Adam Neumann… - https://lnkd.in/eb6_5ZTq #SPACs #SPACNews #SPAC #IPO #markets #news #capitalmarkets #trends #goingpublic #finance #business