Balance Sheet Burn Rate Management Revenue 
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. You have to have good numbers to optimize your management. How to conduct a scenario analysis.
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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 16, 2010
You would think that would be enough to get wrong, but entrepreneurs and investors compound this problem by assuming that all startups grow and scale by executing the Revenue Plan. All discussion focused on “missing the revenue plan.”. Revenue Plan Needs to Match Market Type. They don’t. Reality Meets the Plan. What went wrong?
Steve Blank
FEBRUARY 22, 2010
Managing the Business. 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.
Berkonomics
JULY 1, 2021
First, the VC’s ordered that the company ramp its burn rate (monthly losses in cash) to over $800,000 a month, which I could not fathom. But the CFO let the spending rate continue to increase out of balance with the board-approved budget which projected revenues to ramp, reducing the monthly cash burn.
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.
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