Financials

Start-up Cost Projections For First Time Entrepreneurs

Q: At a pub in Los Gatos, CA a casual conversation with some young, first time entrepreneurs lead to an interesting comment: "…the business plan outlines our estimated (operational) expenses but how do I know an investor is not going to look at these numbers and say…’are you f’ing kidding me’ and  right then and…

Should You Expense or Capitalize Your Engineering Costs?

Q: At RealNetworks we always expensed (vs. capitalized) engineering expenses (as does MSFT).  What is your philosophy on this engineering accounting practice. A: (Brad) Subject to approval by the auditors, I always encourage companies I invest in to expense their engineering costs.  Regardless of the accounting treatment, I think it’s a bullshit practice to capitalize…