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Is the Lean Startup Dead?

Steve Blank

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money. Then one day it was over. IPOs dried up.

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Twitter Link Roundup #240 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Benchmarking SaaS Startup Efficiency with Revenue per Employee Metrics | by @ttunguz – crowdspring.co/1sRVdjm. What is the Right Burn Rate at a Startup Company? | Why Google’s Reported CPC Declines Can’t Tell The Story Of “A Mobile Advertising Problem” – crowdspring.co/1wkmIU1.

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Lean Startups aren't Cheap Startups

Steve Blank

And I can even imagine cases where it might burn more cash than a traditional startup. The key contributors to an out-of-control burn rate is 1) hiring a sales force too early, 2) turning on the demand creation activities too early, 3) developing something other than the minimum feature set for first customer ship. Lets see why.

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Twitter Link Roundup #238 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Refocusing the Startup Burn Rate Debate | OpenView Blog – crowdspring.co/1n8paLq. 5 Things I Learned Analyzing Buffer’s Revenue Dashboard | Ivan Kreimer – crowdspring.co/1xfTwMG. Stock option questions startup employees should ask | Business Insider – crowdspring.co/1n8lUje. React – crowdspring.co/1yHa1WB.

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Critical Key Performance Indicators (KPIs) for Founders

Up and Running

Many startups focus on growth (instead of profits) and often need to track KPIs that may be different from those used by established businesses: Burn rate : indicates the company’s negative cash flow or how quickly it’s spending money. Activation rate: measures how many visitors are engaging with your website or app. Sales KPIs.

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The Cost Equation for a Startup is Better Than Ever

Startup Professionals Musings

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. Use the Internet and social networking instead of public relations companies and advertising agencies.

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No Accounting For Startups

Steve Blank

I had been confused for years why I had to update an income statement each board meeting that said zero for 18 months before we had any revenue. An early indication that you’ve found the right business model is when you believe the cost of getting customers will be less than the revenues the customers will generate. Financials.