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The Virus Survival Strategy For Your Startup

Steve Blank

The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? Burn Rate and Runway. To answer the first question, take stock of your current gross burn rate i.e. how much cash are you spending each month. What does your new business model look like? How do you know?

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Are Business Plans Still Necessary?

Both Sides of the Table

How many people will you hire in the first 24 months and in which sequence. Don’t know the running rate for engineers? I won’t need to hire many engineers or customer support staff. ’ Our Net Income will be $40 million.&#. 66% Net Operating Margins? This is where I spend most of my time.

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What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

But like many companies over the past five years it hired aggressively and probably had some degree of straying off of a core strategy and some amount of excess jobs relative to its current revenue forecasts and opportunities. ” It goes like this: What is your net burn rate? What is your cash balance?

Burn Rate 150
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Should Startups Care About Profitability?

Both Sides of the Table

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth. Not necessarily.

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Five common misconceptions about building a startup in New York City

This is going to be BIG.

Even after we got funded, it took us three months to hire our first two developers at our prior companies—and I consider us pretty visible and well-networked. If anything, it should be *easier* to pull someone out of a bank in NYC than to pull someone out of Twitter or compete against them head to head on hiring. > Office rents?

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Dear elizy: How much should I pay myself at my startup?

Hippoland

Raised $500k-$1.5M : In this range, you probably have a slightly bigger team – say 4-8 people, and some of these later hires are going to be commanding closer to market-rate salaries. If you are generating a fair bit of revenue ($1m net runrate), then you might be paid a low 6-figure salary. Ramen, baby, ramen.

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In a Crisis, Planning Matters More than Ever

Up and Running

Also, for your crisis plan, be sure that you know your burn rate and runway , which is how quickly you are using up your cash reserves and how long you have before you run out of cash. We keep the people because it will cost money to hire them back, or replace them, later on. How to build a profit and loss .

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