Tim Berry

Palo Alto Software founder Tim Berry pioneered business plan software and literally wrote the book on Lean Planning. Learn how to get what you want from your business with Tim's approach to business planning.

What makes a good business plan? Results. Goals met, milestones achieved, objectives accomplished. Forget the old-fashioned thinking of evaluating plans like a college term paper. You don’t get points for writing style, formatting, or completeness. A…

For the sake of occasional business analysis — such as calculating return on investment (ROI) on a project, hiring a new employee, or allocating costs — here’s a simple formula for calculating the hourly cost of an employee: Cost per hour = annual…

Somebody asked me what the key components of a good business plan were, and I’m glad they did—it’s one of my favorite topics. It gives me a chance to review and revise another of the lists that I’ve done off and on for years (such as the one from…

A good argument for teams in business is not having to know finance if you love sales, marketing, or product development. But you’re a business owner. You’ll run your business better if you understand the standard business plan financials. These…

Every spring, I read and review dozens of business plans as a member of an angel investment group and a judge at several business plan contests. I love it. The plans I’ve seen are better than ever this year. But, for some reason, their financial…

They teach decision sciences in business schools. Those of us who do business, whether as entrepreneurs, business owners, or careerists, talk a lot and think a lot about business decisions. We all want better business decisions. I’ve taken some of…

I started my own service business and survived that way for 12 years before Palo Alto Software finally established itself as a product company. So, I do have some tips I can share. 1. Set your goals right and define success well Service businesses…

Last week at an angel investment meeting one of our group members asked whether anybody had a list of red flag problems that would immediately eliminate a startup from consideration by angel investors. That seemed like a good idea to me then. And…

Here are the key assumptions I believe deter potential entrepreneurs. 1. That being profitable means having cash in the bank Seems obvious, but spending on inventory, waiting on accounts receivable, buying assets and some other spending suck up cash…

Stories are the oldest and probably the best way to communicate ideas, truth, and beliefs. Stories as business strategy can be extremely powerful. Think of the key stories that are foundational in the great religions. Or think about the stories…

I’ve been doing business planning professionally since the 1980s. It’s changed a lot. These days, I very much advocate the one-page business plan for managing all businesses and all business owners, regardless of whether or not you need the full…

Is it time for plan B? The best and most useful kind of business planning is not just a use-once business plan, but rather a continuous process. The first business plan is just the first step. For the rest of your business’s life, you review the plan…

Product and brand failures occur on an ongoing basis to varying degrees within most product-based organizations. This is the negative aspect of the development and marketing process. In most cases, this “failure rate” syndrome ends up being a numbers…

To start and run a business, you often need to understand business terms that may not be well-defined in a standard dictionary. Our glossary of business terms provides definitions for common terminology and acronyms in business plans, accounting,…

What does your business structure look like? Who is involved? What’s your history? These are all important questions that you’ll answer by writing the company overview section of your business plan. We’ll explain what to include, how to write it, and…

Many positives are associated with being your own boss—after all, you’re in control. Just remember that control comes with many responsibilities and challenges to manage.

What will it cost to start your business? This is a key question for anyone thinking about starting out on their own. You’ll want to spend some time figuring this out so you know how much money you need to raise and if you can afford to get your…

Do you know who your competitors are? If you do, have you taken the time to conduct a thorough competitor analysis? Knowing your competitors, how they operate, and the necessary benchmarks you need to hit are crucial to positioning your business for…

A good cash flow forecast might be the most important single piece of a business plan. All the strategy, tactics, and ongoing business activities mean nothing if there isn’t enough money to pay the bills. That’s what a cash flow forecast is…