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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it it is also the title of a fabulous book from Internet 1.0 Net burn is the amount of money you are losing per month. Let’s set up a framework.

Burn Rate 383
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5 “What-Ifs” To Include In A Startup Financial Model

Startup Professionals Musings

The way to start is with a sample financial model, available from many sources on the Internet, such as over 200 downloadable free from the Corporate Finance Institute website. The manual calculations to translate market assumptions into costs, volumes, expenses and net return are massive.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

When they look at buying your company they often think in terms of “how long will it take until I earn back the profits to pay for my acquisition price?” Internet scale. Gross Profit (also called Gross Margin or sometimes “Net Revenue”). Simplifying: Revenue -. Cost of Goods Sold (COGS) =.

Startup 418
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5 Considerations For Driving Growth In A New Business

Startup Professionals Musings

Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range. Startup productivity is embodied in key ratios, including low cost of customer acquisition, high retention, and high revenue per employee. High customer loyalty and high team passion.

Valuation 235
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5 Strategies For Balancing Revenue Versus User Growth

Startup Professionals Musings

Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range. Startup productivity is embodied in key ratios, including low cost of customer acquisition, high retention, and high revenue per employee. High customer loyalty and high team passion.

Revenue 434
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Why Has LA Suddenly Gotten So Much Attention from VCs and Entrepreneurs?

Both Sides of the Table

Many people don’t realize that the majority of the monetization of the Internet originated in Los Angeles but was perfected in Silicon Valley. The monetization engine of the Internet that powers the most profitable business perhaps in history was invented and perfected in Los Angeles and is what you now know as Google Ad Words.

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7 Keys To Sustainably Enriching Your Customers’ Lives

Startup Professionals Musings

In this age of instant and global communication via social media and the Internet, I see more and more evidence that delighted customers should be your top priority.

Customer 285