David Teten

NOVEMBER 26, 2019

Howell, Professor of Business Administration at Tuck, writes that you should turn your budgeting process upside down by “reformat[ting] planning and budgeting templates to highlight cash rather than accounting net income.”. due to inflation, salary increases) to maintain margin in an environment of downward pressure on prices.

Agile 60

Agile Management Forecast Silicon Valley 60

YoungUpstarts

FEBRUARY 12, 2019

A well-designed sales compensation plan will motivate your team to succeed. And which sales compensation plants yielded the most revenue? In most sales jobs, there must be a base salary. If you want to see more new business than repeat purchases, then the commission on net new sales should be higher.

Sales 113

Sales Salary .Net Revenue 113

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% The reps’ top 3 priorities should be (i) MRR, (ii) MRR, and (iii) MRR.

Software Review 91

Software Review Clawback Sales Salary 91

The Startup Magazine

MARCH 11, 2020

If your goal is to earn a five-figure-a-month salary as an entrepreneur, it’s certainly possible. The more streams you have, the better your chances are of earning a five-figure-a-month salary. In order for your brand to generate a five-figure-a-month salary , you need to create services or products that will generate consistent sales.

Entrepreneur 109

Entrepreneur Salary .Net Demand 109

Occam's Razor

FEBRUARY 25, 2013

What is the incremental revenue impact on the company's bottom-line for the investment in data, systems and people? It also contains multiple tabs full of specific computations of revenue incrementality delivered for various analytical efforts (Paid Search, Email Marketing, Attribution Analysis, and more). Isn't it amazing?

Analytics 142

Analytics DC Revenue Web 142

Board Effect

SEPTEMBER 20, 2019

Nonprofits that have revenues in excess of $25,000 per year must file an annual report on Form 990 with the IRS. IRS Form 990 asks for information on the nonprofit’s income, expenses and staff salaries that are over $50,000. The IRS has designated various tax codes for different types of nonprofit organizations.

Software Review 45

Software Review Government Distribution Sales 45

Up and Running

NOVEMBER 12, 2018

The subscription box industry is growing rapidly thanks to a steady revenue model and tapping into people’s love for surprises. Financial summary : Project your revenue for the first few years. Companies that become a big subset of your revenue are likely strategic alliances, though, which is a later section. Key customers.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

YoungUpstarts

JUNE 27, 2019

Digital nomads now have a slew of resources at their hand, from an influx in coworking spaces to new technology designed to accommodate the mobile workforce. For instance, customer service is one area that many businesses choose to outsource to help them cast a wider net and better service their clients and customers.

Salary 127

Salary .Net Equity Programming 127

Berkonomics

MARCH 30, 2010

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit.

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

This is going to be BIG.

NOVEMBER 28, 2011

Associate position at a top tier VC fund or lead dog for a random pool of high net worth money that no one's ever heard of? They have lots of revenues, high growth, funding, etc. You probably didn't have that much time getting meetings and you probably got paid a pretty normal salary.

Non-Compete 115

Non-Compete Design Hiring Incubator 115

Startup Professionals Musings

JANUARY 8, 2013

Almost all angel investors are “high net worth” individuals who made their money running a successful business in your domain, and they will mentor your team as well as demand the discipline you need to make your business work. Most actually have the time and inclination to help you, rather than compete with you. Angel investor.

Advisory Board 247

Advisory Board Angel Investor Startup Equity 247

Startup Professionals Musings

NOVEMBER 20, 2011

Almost all angel investors are “high net worth” individuals who made their money running a successful business in your domain, and they will mentor your team as well as demand the discipline you need to make your business work. Most actually have the time and inclination to help you, rather than compete with you. Angel Investor.

Advisory Board 268

Advisory Board Angel Investor Entrepreneur Equity 268

Startup Professionals Musings

NOVEMBER 26, 2012

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. Particularly valuable are recurring revenues, like subscription amounts, that don’t have to be resold every period. NewCo doesn’t have any of these yet.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. The ROI of an existing customer is higher than the ROI of a net new customer. Metric examples: Monthly recurring revenue (MRR); Average revenue per account (ARPA); Engagement; Customer lifetime value (LTV); Upsell/cross-sell conversion rates.

Retention 101

Retention Metrics Churn Rate Acquisition 101

Up and Running

MAY 1, 2014

Ideally your executive summary will be 1-2 pages at most, designed to be a quick read that sparks interest and makes your investors feel eager to hear more. COGS should only include those costs directly related to selling your products, not regular business expenses such as rent, insurance, salaries, etc. Net Profit.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Gust

DECEMBER 31, 2012

Almost all angel investors are “high net worth” individuals who made their money running a successful business in your domain, and they will mentor your team as well as demand the discipline you need to make your business work. Most actually have the time and inclination to help you, rather than compete with you. Angel investor.

Advisory Board 177

Advisory Board Angel Investor Startup Equity 177

paulgraham.com

SEPTEMBER 23, 2012

September 2012 A startup is a company designed to grow fast. A barbershop isnt designed to grow fast. When I say startups are designed to grow fast, I mean it in two senses. Partly I mean designed in the sense of intended, because most startups fail. The best thing to measure the growth rate of is revenue.

Startup 111

Startup Technical Review Software Review Acquisition 111

Startup Professionals Musings

OCTOBER 26, 2010

Almost all angel investors are “high net worth” individuals who made their money running a successful business in your domain, and they will mentor your team as well as demand the discipline you need to make your business work. Most actually have the time and inclination to help you, rather than compete with you. Angel Investor.

Advisory Board 189

Advisory Board Angel Investor Equity Salary 189

Occam's Razor

SEPTEMBER 24, 2012

Compute ROI: (cost of Facebook campaigns + salary of people running campaigns + agency creative costs) vs. profit from incremental product sales. All the things that directly tie to the bottom-line of your company, which you can tie to Net Income driven by digital. Attribute it all to the Facebook campaigns. from those clicks.

Metrics 165

Metrics Advertising Marketing Social Media 165

Startup Professionals Musings

SEPTEMBER 30, 2011

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. Particularly valuable are recurring revenues, like subscription amounts, that don’t have to be resold every period. NewCo doesn’t have any of these yet.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Occam's Razor

SEPTEMBER 19, 2011

You need people with deep skills in Scientific Method , Design of Experiments , and Statistical Analysis. We'll measure Revenue, Profit (the money we make less cost of goods sold), Expense (cost of campaign), Net (bottom-line impact). If the company did both things, revenue was $12. ask for a raise. The people.

.Net 119

.Net Campaign Analytics Channel 119

Up and Running

APRIL 6, 2020

You’ll also have variable expenses such as salaries, travel, supplies, and other services you use to run your business. This is your Net Burn Rate (but it’s typically just referred to as Burn Rate). To figure this out, start with how much cash you are spending each month. This total number is your Gross Burn Rate.

Burn Rate 100

Burn Rate Forecast SBA Cash Position 100

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.

Software Review 48

Software Review North America Europe Metrics 48

Gust

NOVEMBER 18, 2012

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. Particularly valuable are recurring revenues, like subscription amounts, that don’t have to be resold every period. NewCo doesn’t have any of these yet.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Startup Professionals Musings

SEPTEMBER 6, 2010

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage blogs and other resources, and maybe even pay themselves a salary. Particularly valuable are recurring revenues, like subscription amounts, that don’t have to be resold every period. NewCo doesn’t have any of these yet.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. The ROI of an existing customer is higher than the ROI of a net new customer. Metric examples: Monthly recurring revenue (MRR); Average revenue per account (ARPA); Engagement; Customer lifetime value (LTV); Upsell/cross-sell conversion rates.

Retention 48

Retention Metrics Churn Rate Acquisition 48

Software By Rob

JANUARY 7, 2009

You can go without these expenses for a short time while in startup mode, but if you plan to build a company that’s sustainable in the long-run you’re going to need to cover these expenses before you think about collecting a salary. Please, I beg you, pay someone to design your web site. Phone - $20/month for a land line.

Software Review 52

Software Review Software Hosting Salary 52

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Do that – nothing else but one product / company / focus and get to $1M in sales with atleast $15% net profit. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Software By Rob

NOVEMBER 18, 2008

Most developers start as salaried employees, slogging through code and loving it because they never imagined a job could be challenging, educational, and downright fun. Where else can you learn new things every day, play around with computers, and get paid for it? Aside from working at Best Buy. Except for one thing. 10 Rob on 11.19.08

Software Review 42

Software Review Software Product Salary 42

www.mint.com

MARCH 9, 2010

What is your net outflow per month? If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” Who is on your board of directors?

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Up and Running

DECEMBER 9, 2014

It’s designed for small and mid size companies and it all started based on a focus of the employees. Our slogan is, “We heart employees,” and everything that we do is designed around usability for the employees. Two, revenue. We’re a time tracking system. It’s a web-based time tracking system.

Small Business 95

Small Business Finance Forecast Metrics 95

Up and Running

JULY 31, 2014

Think about big categories: salary, marketing, sales, rent, utilities. Net profit, at the end of the day it doesn’t matter how much we sell. In terms of calculating customer acquisition cost, our question is, should they include sales, salary, sales commission in that cost or other sort of overhead. Do you have a designer?

Software Review 74

Software Review Sales Acquisition Small Business 74

pandodaily.com

NOVEMBER 29, 2012

They’re cutting salaries and making the last tens of thousands — or if they’re lucky a hundred thousand — last. As a result, Pandora is nowhere near profitable at more than $103 million in quarterly revenue, paying more than half of this sum to labels for content licenses. Source VentureBeat ]. -

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93

ConversionXL

NOVEMBER 13, 2019

Out of that result, we created a client with more than €5 million in revenue.” I literally started with a blank piece of paper and designed the process and methodologies that would get the best outcome for our clients. But with them, we’ve scaled revenue by several millions per year and set the stage to scale farther.”

SEO 110

SEO Hiring PPC Leadership 110

Up and Running

APRIL 29, 2014

If you have those goals in mind and you understand where you’re going with your business, you have so much more power to plan for them, both on the tax side as well as on the revenue and expense side for your business and cash flow management. These are state designations. Same thing with net profits or net losses.

.Net 85

.Net Capital Gains Distribution Puerto Rico 85

Duct Tape Marketing

NOVEMBER 29, 2016

Mail providers will handle all of your A/B testing, email design, delivery time optimization and opt-outs. Besides the cost of a press manager’s salary, getting media mentions is a low-cost acquisition channel that can have a huge return. One thing I cannot stress enough is the importance of getting a rock star PR person on your team.

Marketing 28

Marketing Channel Analytics Metrics 28

Startup Lessons Learned

AUGUST 26, 2020

It was as though I figured out what I should be doing with the experience I was so recently afforded because I think that designing my own life, but also getting to figure out. Whereas, taking the job at X company, advancing to Y position, attaining Z salary, didn't feel natural. And then I, of course, need revenue for this."

Fresno 60

Fresno Community Technology California 60