Up and Running

OCTOBER 16, 2019

The other two are your balance sheet and your income statement (P&L). . Your business plan is a great place to map how your sales and revenue goals fit with your expense budget. Down the road, you might decide that you want to sell your business or position yourself for acquisition. SMART goals are: Specific.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

David Teten

AUGUST 6, 2015

It’s misleadingly precise to have two digits to the right of the decimal in a CAC/LTV multiple for year 3 of your forecast (“Customer Acquisition Cost”/”LifeTime Value of Customer”). A more mature organization may project future revenues based on their actual sales pipeline, with a probability adjusted percentage based on stage.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

ReadWriteStart

NOVEMBER 3, 2011

In How To Defend Your Dream Against All Odds , Alex and I explore the company's journey to $200 Million in revenue, while their VCs wrote them off. Zoho is already over $100 million in revenue and is seeing tremendous traction. So, please don't get discouraged; there are many paths to success. Statisco Economic Analytics.

North Carolina 116

North Carolina San Diego Entrepreneur Balance Sheet 116

Steve Blank

FEBRUARY 22, 2010

One of the ways our VC’s kept track of our progress was by taking a monthly look at three financial documents: Income Statement, Balance Sheet and Cash Flow Statement. To be clear – Income Statements, Balance Sheets and Cash Flow Statements are really important at two points in your startup.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Haystack

NOVEMBER 24, 2018

price tag squeezed out by BlackBerry represented *over half* of the actual cash reserves it had sitting on its balance sheet. It’s been a few years now since BlackBerry made phones, and this represents its largest purchase to date (by a factor of 3) since its 2015 acquisition of Good Technology. 1/ Cash Is King: The $1.4B

Acquisition 62

Acquisition Artificial Inteligence Balance Sheet Cofounder 62

The Startup Magazine

SEPTEMBER 10, 2019

Compounding is the ability of an asset to generate earnings that are reinvested in order to generate exponential revenue growth. It has never paid out dividends, and clocks around $200 billion in revenue. million in revenue at the time. To some extent you can manage the revenue for a quarter or 2. Alpha generation.

Founder 117

Founder Valuation Dividend Startup 117

David Teten

DECEMBER 16, 2015

The most common financial metrics ffVC asks companies to compare vs. budget are: Gross Revenue. Customer Acquisition Cost (CAC). Monthly Recurring Revenue (MRR). Average Revenue Per Account. And it means holding yourself and others rigorously accountable, which can be painful. So how do you do it? Gross Profit.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Up and Running

MARCH 9, 2022

Everyday business events such as expansion projects, acquisitions, low cash on hand, increased fixed expenses, increased borrowing, and even an increase in sales can be signs that it’s time to reevaluate your business risk. You can find these values on your corporate balance sheet, or you can calculate them on your own.

Equity 136

Equity .Net Balance Sheet Operations 136

Both Sides of the Table

APRIL 14, 2012

“it’s smart to use an impending investment valuation to drive a higher acquisition valuation” I would like to amend her statement slightly to read, “it’s smart to use an impending investment valuation to drive an higher acquisition.” Just checked their balance sheet. Christin goes on.

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

Both Sides of the Table

JULY 1, 2015

“the ecommerce company gained fauxmentum by raising artificially high amounts of venture capital and spent lavishly on customer acquisition despite long payback periods and questionable LTV” __. In the ecommerce arena I see some great companies spending heavily on customer acquisition. __. faux·men·tum. Summary.

eCommerce 150

eCommerce Balance Sheet Venture Capital Acquisition 150

Steve Blank

JUNE 23, 2016

It’s a lot easier to get these numbers to look great by outsourcing everything, getting assets off the balance sheet and only investing in things that pay off fast. Intel under their last two CEOs delivered more revenue and profit than any ever before. These resulting business models made them look incredibly profitable.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Both Sides of the Table

JUNE 17, 2017

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. 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.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Steve Blank

MARCH 4, 2014

A consequence of using these corporate finance metrics like RONA and IRR is that it ‘s a lot easier to get these numbers to look great by 1) outsourcing everything, 2) getting assets off the balance sheet and 3) only investing in things that pay off fast. Corporate KPI’s, Policy and Procedures: Innovation Killers.

IRR 335

IRR Startup Business Model Agile 335

Steve Blank

APRIL 8, 2010

They collected information that justified their assumptions about the problem, opportunity, market size, their solution and competitors and the their team, They rolled up a 5-year sales forecast with assumptions about their revenue model, pricing, sales, marketing, customer acquisition cost, etc. It was an exquisitely crafted plan.

Business Model 328

Business Model Business Plan Customer Cap Table 328

YoungUpstarts

MAY 23, 2017

Then design, propose and get concurrence on the specific ways you will deliver their personal win and fulfill the hidden and unique motivations that are often not found on contracts, income statements and balance sheets. Demonstrate Your Reliability. Be unreasonably accountable when the unexpected happens.

Balance Sheet 122

Balance Sheet Seattle Retention LLC 122

View from Seed

JUNE 13, 2019

I know some of the investors in Chewy prior to the PetSmart acquisition, but I am not a shareholder nor do I intend to purchase shares in the IPO. revenue business still growing >50% YoY? Chewy now has over 10 million customers, repeat purchases by existing customers account for approximately 90% of their revenue today.

Leadership 214

Leadership .Net Revenue Acquisition 214

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 11, 2014

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity).

Churn Rate 288

Churn Rate .Net Metrics Hosting 288

Growthink Blog

MAY 30, 2018

Here, a great (and for most mature small businesses, under-utilized) solution is to “strengthen the balance sheet” through an outside capital raise. Then, when deal opportunities present themselves - like strategic partnerships, new hires, marketing campaigns, growth-by-acquisitions, etc.

Balance Sheet 48

Balance Sheet Artificial Inteligence Business Model Acquisition 48

The Equity Kicker

FEBRUARY 15, 2013

Most companies choose not to share it widely when they are in acquisition talks because it is destabilising for employees who will start worrying about whether they will keep their jobs and what it might mean for their careers. There is, of course, some information that it isn’t appropriate to share.

Balance Sheet 103

Balance Sheet Acquisition Employee Revenue 103

Up and Running

FEBRUARY 8, 2016

Here’s what they discovered: They found firms that quickly institute formal mechanisms such as operation budgets, cash budgets, and financial monitoring systems (tools that measure profitability, customer acquisition costs, variance from actual budget, and so forth) had higher growth rates in terms of revenues and headcount.

Entrepreneur 60

Entrepreneur Software Review Balance Sheet Partner 60

Up and Running

JULY 22, 2014

Balance sheet. It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. Cash flow statement.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

The Next Web

OCTOBER 11, 2013

From brand licensing opportunities to renting digital space, there are some creative revenue opportunities out there if you just know where to look. As startups build their digital brand, reach and influence, they can extend their brands into new verticals and create new revenue-generating opportunities through brand licensing.

Balance Sheet 141

Balance Sheet Startup Advertising Vesting 141

Feld Thoughts

SEPTEMBER 9, 2015

If private capital is no longer available in the future, these companies will seek a public offering or acquisition. Others, Lee acknowledged, may never see their balance sheets add enough zeros to justify the title. I once was on the board of a company that had generated lifetime revenue of $1.5m

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

ReadWriteStart

JULY 15, 2020

As a unicorn approaches an exit, the balance sheet needs to make sense. One of their investors, JTC Group has developed a specialty in this arena through a recent acquisition. The action includes training in the full range of customer service skills that bring in revenue.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

Berkonomics

APRIL 4, 2019

Shareholders may vote on other issues during the year by written consent, including acquisitions, stock issuance, changes to the articles of incorporation and bylaws, and more. The answer is that the minimum requirement is to provide an income statement and balance sheet to all shareholders annually. But don’t worry.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

YoungUpstarts

JULY 31, 2015

IBM leveraged this acquisition with the Catalyst Startup Program , which offers free technical services and mentorship to startups. Startups can be valuable to corporations even if they don’t have huge customer bases or streams of revenue. To start, look at your balance sheet and determine where you spend the most money.

Small Business 100

Small Business Balance Sheet Cloud Programming 100

Gust

DECEMBER 23, 2011

Similarly, start calling VCs if your customer acquisition costs can only be recaptured over a substantial period of time. So: think deeply about the nature of your competitive advantage, your basic revenue vs. expense model, and whether the perception of a well-funded venture is important or not.

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127

YoungUpstarts

DECEMBER 15, 2011

Launching a business often involves dips in revenue, and a startup will only survive if it can manage expenses during this fragile time. Salaries are one item on a company’s balance sheet that catches the attention of some investors. Investors Look at Salaries. Investing in a startup will involve high stakes.

Exit Strategy 167

Exit Strategy Balance Sheet Startup Salary 167

Agile VC

JUNE 13, 2019

I know some of the investors in Chewy prior to the PetSmart acquisition, but I am not a shareholder nor do I intend to purchase shares in the IPO. revenue business still growing >50% YoY? Chewy now has over 10 million customers, repeat purchases by existing customers account for approximately 90% of their revenue today.

Leadership 100

Leadership .Net Revenue Acquisition 100

Occam's Razor

MAY 2, 2017

#tearsofpain One way of removing silos and focusing on the entire business is to leverage Acquisition, Behavior and Outcome metrics. A small change I’ll make in this post is that when I recommend the metrics, I’ll follow the Outcomes | Behavior | Acquisition structure throughout this post. Hence that’s the macro-outcome.

Metrics 141

Metrics Acquisition eCommerce Analytics 141

Berkonomics

APRIL 14, 2012

Shareholders may vote on other issues during the year by written consent, including acquisitions, stock issuances, changes to the articles of incorporation and bylaws, and more. The answer is that the minimum requirement is to provide an income statement and balance sheet to all shareholders annually.

Stock Options 81

Stock Options Balance Sheet Stock Common Stock 81

Up and Running

JULY 20, 2015

Most simply, cash flow statements very quickly tell the story of how much revenue a company has coming in (inflows), and how much it has going out (outflows). Your organization’s operating activities include everything that relates to how you generate revenue. Operating activities. Financing activities.

Dividend 60

Dividend Balance Sheet .Net Merger 60

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

BeyondVC

OCTOBER 31, 2005

A number of our portfolio companies have been fielding calls from strategic buyers expressing an interest in acquisition. This is great news since many of the better acquisitions come when companies are bought and not sold. What are they looking for in terms of an acquisition? Revenue, product, management, both?

Balance Sheet 87

Balance Sheet Acquisition Valuation Conversion 87

Cracking the Code

MARCH 28, 2022

One of the 2020 giants also left this select club: Zoom, which was impacted by the failed acquisition of Five9 and people’s gradual return to offices. While the average forward revenue multiple has declined slightly since its February 2020 peak (19x), it’s still higher today than last year at 17x vs 15.8x The Index added another $0.9T

Global 62

Global Europe Software Review 62

Eric Friedman

AUGUST 18, 2021

Previously, he was the COO of digital gift card start-up Giftly from its inception in 2010 to its acquisition by Giftcards.com in 2013. People talk about businesses that are obviously lending businesses as if they take no balance sheet risk or have no credit exposure. That scares me.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88