Balance Sheet Burn Rate Operations 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.
YoungUpstarts
MAY 19, 2016
Use burn rate as an example. If you don’t understand how much money your company is burning through each month, how can you expect to intelligently talk about your fiscal health? To become part of the surviving half, use these methods to ensure your startup’s structure stands strong. Read your books from cover to cover.
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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?
Up and Running
FEBRUARY 20, 2015
Depending on the type of business you operate, the metrics you monitor will differ. For example, if you have an eCommerce website , you’ll want to measure unique visitors, referrals, bounce rate, and similar. In your company’s financial statements, accounts payable will show up on your balance sheet as a liability.
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.
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.
Both Sides of the Table
AUGUST 9, 2011
Mostly we got to see the team operate in stressful times and that changed my perspective on the deal. Companies raised too much money in 2005-08 and had high burn rates. We have the inability to hire engineering in Silicon Valley or brand sales people in NYC but the country still has very high structural long-term unemployment.
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