Balance Sheet Burn Rate Cost Sales 
Both Sides of the Table
SEPTEMBER 28, 2014
I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in.
Up and Running
APRIL 30, 2020
.” It’s been a favorite management tool of mine since my time as VP for a market research firm, and it’s a method I used for decades growing a software company from zero to well over $10 million in annual sales. Impact on sales: If sales go down 30%? What is a scenario analysis? Will businesses open slowly?
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Up and Running
FEBRUARY 20, 2015
If you’re running a subscription business , you’ll want to track churn rate, monthly recurring revenue, lifetime value, and so on. However, there are a number of metrics that every business owner should know, including cash flow, accounts payable, accounts receivable, direct costs, operating margin, net profit, and cash burn rate.
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.
Both Sides of the Table
JUNE 17, 2017
The most obvious way to explain this is with sales people. 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. They don’t want high burn rates but they will never fund slow growth.
Both Sides of the Table
FEBRUARY 8, 2016
The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. Pragmatic cost cuts are always possible and often productive. Start early.
Up and Running
APRIL 2, 2020
Your sales have plunged, or worse, your business is now closed during the shutdown. Specifically, if you have an ongoing sales forecast , and expense budgets linked to that forecast, then you have instant visibility for making quick adjustments to sudden change. . What your sales numbers look like in a crisis.
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