YoungUpstarts
AUGUST 18, 2020
Figure Out the Net Assets of the Business. Once you have tallied all existing assets, subtract liabilities to come to a determination of the company’s net assets. Liabilities are anything that the company owes, often coming with the word “payable,” and may include items such debt owed to creditors and salaries due to employees.
David Teten
AUGUST 19, 2019
So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.
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Berkonomics
OCTOBER 5, 2023
Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. How about young or pre-revenue companies? Why did the company abandon a profitable market, even if it could not generate $100 million a year in revenues?” first appeared on BERKONOMICS.
The Startup Magazine
MAY 31, 2022
Payroll management entails several steps, including: Calculating allowances (such as rent and travel expenses) and salary components (variable and net pay). An HR manager’s starting salary in the United States is roughly $90,000 plus benefits. However, when your team grows, managing payroll becomes increasingly difficult.
Both Sides of the Table
DECEMBER 27, 2011
If you hire 6 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 for 4-6 months. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.
Berkonomics
FEBRUARY 11, 2021
Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month. Project your revenues and costs as in the original exercise. Project your revenues and costs as in the original exercise. The post Could you achieve ten percent net income each month?
Feld Thoughts
OCTOBER 10, 2011
I’m tired of “Revenue” being referred to as “Income.” For households and individuals, income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings received. Call the thing at the top of the P&L “Revenue”, not “Income” Rant off.
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