Steve Blank

MARCH 31, 2014

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. As Harvard professor Clayton Christensen noted, these efficiency metrics provided wise guidance for times when capital was scarce and raising money was hard. Ultimately this is not just another staff function.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Up and Running

JUNE 9, 2020

Until your customers pay their invoices, you can’t pay your bills. So, if you’re doing a ton of business, but your customers are slow to pay on their invoices, you might still have cash flow problems. Your accounts receivable is listed as a “current asset” on your balance sheet. Watch your accounts receivable.

Forecast 114

Forecast Software Review Campaign Cash Position 114

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. Who are our partners?

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Up and Running

OCTOBER 23, 2020

Now that reverses with the variance analysis of costs, expenses, and spending. This moves you outside of specific sales or costs and allows you to truly understand if your business is profitable. Customer interest. Possibly the most important aspect of what you should be looking for is overall customer interest.

Management 117

Management Forecast Software Review Balance Sheet 117

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Then you’ll think through your ideal customer , your competition , and your opportunities for growth. Milestones and metrics that you’ll need to hit to be viable. Do they self-pay or use insurance? Be specific. Operations.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Up and Running

NOVEMBER 19, 2012

A financial plan with a Sales Forecast, Profit & Loss , Cash Flow Forecast , and Balance Sheet. Performance tracking to compare ACTUAL financial results with your planned financials and other key metrics. Are there ways you can implement the service that are more cost effective? Do you need to price higher?

Lean 83

Lean Small Business Forecast Technical Review 83

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”). While some of your customers may pay via credit card, perhaps some of your largest customers pay on Net 60 or even 90 terms.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

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). Now let’s cover those nuances I mentioned.

Churn Rate 288

Churn Rate .Net Metrics Hosting 288

Steve Blank

JUNE 23, 2016

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. These metrics make it difficult for a company that wants to invest in long-term innovation. On the low-end, they undercut cost structures, resulting in customer migration.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Steve Blank

MARCH 4, 2014

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. They measure their success on metrics that reflect success in execution, and they reward execution.

IRR 335

IRR Startup Business Model Agile 335

Occam's Razor

MAY 2, 2017

There is no golden metric for everyone, we are all unique snowflakes! :). and tell you what are the best key performance indicators (metrics) for them. In the past I’ve shared a cluster of metrics that small, medium and large businesses can use as a springboard…. If you want to play along. Don’t read what I’ve chosen.

Metrics 141

Metrics Acquisition eCommerce Analytics 141

Up and Running

SEPTEMBER 3, 2015

Define your ideal customer. How easy is it to acquire a customer, and how much will it cost? How much money and effort will it cost to deliver value? Interview potential customers to ensure that they have the problem you are trying to solve. Determine if your initial price points will work for your customers.

Elevator Pitch 60

Elevator Pitch Startup Balance Sheet Forecast 60

Up and Running

MAY 30, 2022

An often overlooked purpose of a business plan is as a tool to define success metrics. This includes financial statements such as your profit and loss, cash flow, balance sheet, and sales forecast. Detail things like how you plan to attract and retain customers, acquire new leads, how the digital marketing funnel will work, etc.

Business Plan 150

Business Plan Balance Sheet Revenue Metrics 150

Startup Professionals Musings

MARCH 30, 2016

Nimbleness and urgency to get the job done will set you apart from your competitors in so many ways, particularly with customers. Well-articulated goals and metrics. Startups can’t hope to outspend a giant with a fat balance sheet. Build it at the start and don’t ever lose it. Innovation-driven mindset and actions.

Balance Sheet 120

Balance Sheet Metrics Entrepreneur Engineer 120

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. He instructed me to call the potential customer instead and ask for a meeting. But just putting a customer reference list in a data room? It felt like heresy.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Startup Professionals Musings

FEBRUARY 2, 2015

Nimbleness and urgency to get the job done will set you apart from your competitors in so many ways, particularly with customers. Well-articulated goals and metrics. Startups can’t hope to outspend a giant with a fat balance sheet. Build it at the start and don’t ever lose it. Innovation-driven mindset and actions.

Balance Sheet 120

Balance Sheet Metrics Entrepreneur Engineer 120

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

MAY 1, 2014

Milestones and Metrics. Every business is solving a problem for its customers and filling a need in the market. Who is your ideal customer? If you can show that your potential customers are already interested in—or perhaps already buying—your product or service, this is great to highlight. Read more ». Read more ».

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Feld Thoughts

AUGUST 12, 2011

Dick and Jane had limited formal business accounting experience, but they both knew how to balance a checkbook. Revenues and costs should both be based off of a robust set of assumptions. customer behavior, support inquiries, marketing analytics). Build a financial model that forecasts the P&L. historical data).

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

Up and Running

NOVEMBER 12, 2018

Lots of new box companies have trouble ironing out the kinks in their process: their customer can’t easily unsubscribe, their boxes just aren’t exciting or well-curated, and more. Target market (intended customers). Creating a buyer persona puts you in the customer’s shoes to guide marketing and sales decisions. Key customers.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

Up and Running

OCTOBER 3, 2017

Summarize the problem you are solving for customers, your solution, the target market, the founding team, and financial forecast highlights. Describe the problem that you solve for your customers and the solution that you are selling. You need to know your target market—the types of customers you are looking for—and how it’s changing.

Business Plan 134

Business Plan Balance Sheet Forecast Lean 134

The Startup Magazine

MAY 31, 2022

As a true pioneer of the circular economy movement, Claudia is Technical Panel Member for UL STP3600 Standards, the standards for the Circular Economy and the metrics, processes, and procedures for the circularity of materials and operations. This action can create inefficiencies and add cost.

Founder 117

Founder Argentina Chicago Switzerland 117

Up and Running

AUGUST 20, 2018

The need becomes obvious as soon as you recognize that you don’t know how much money you need, and when you need it, without laying out projected sales , costs, expenses, and timing of payments. The projections include sales, costs, expenses, and cash flow. And, beyond marketing, your target market will define how your company grows.

Business Plan 119

Business Plan Technical Review Lean Forecast 119

Up and Running

OCTOBER 3, 2018

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Then you’ll think through your ideal customer, your competition, and your opportunities for growth. This section of your business plan describes what services you provide and how they benefit your customers. Key customers.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

Small Business Force

FEBRUARY 21, 2014

This doesn't mean you have to become a CPA or go take a boatload of accounting courses, but, at least, learn to understand what's in a basic income statement and balance sheet and what they mean. If it was a manufacturing business, cost of goods sold (COGS) were critical. This is more than just revenue or expense.

Finance 37

Finance Management Forecast Entrepreneur 37

Small Business Force

AUGUST 10, 2013

Did you really understand how much you needed to know about marketing, sales, operations, finance and customer support, just to name a few. You don't have to learn how to be an accountant, but you do have to understand cash flow, cost of goods sold and operating profit.You have to be able to read an income statement and a balance sheet.

Entrepreneur 37

Entrepreneur Balance Sheet Finance Sales 37

Up and Running

FEBRUARY 17, 2016

Where in your area will you find land or a building with the right zoning, size, facilities, and access for bringing in raw materials, attracting customers, and/or shipping out finished beer for distribution? Breweries don’t really win customers with one beer, but they can lose customers with one beer.”. Relationships.

Oregon 60

Oregon Jordan SBA Cofounder 60

Up and Running

MAY 15, 2019

Where in your area will you find land or a building with the right zoning, size, facilities, and access for bringing in raw materials, attracting customers, and/or shipping out finished beer for distribution? Know your customers and your financials. Cash must be available to cover costs and offset delays. Find trusted advisors.

Oregon 24

Oregon Jordan Software Review Distribution 24

Startup Lessons Learned

JUNE 9, 2020

A complete collapse of revenue that simultaneously affects your employees and your customers, your partners, your investors, everyone all at once and all the news is bad. People, not just metrics. Your customers and your investors like partners? That meant of course initially raising money and cutting costs.

Silicon Valley 60

Silicon Valley Hosting Cofounder Employee 60

Up and Running

MARCH 17, 2020

The problem: A description of the problem or need your customers have and any relevant data that supports your claim. Business model : How you will make money, including the costs of production and selling, and the price that customers will pay. Target market : Who is your customer and how many of them are there.

Business Plan 86

Business Plan Balance Sheet Lean Forecast 86

Up and Running

MARCH 11, 2015

You should have a good solid executive summary, you should have full financials, and that means a projected balance sheet, P&L and cash flow. If you don’t have any existing customers yet talk about perspective customers. That moves into the customer acquisition strategy. Are you saving them time?

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

Reid Hoffman

JUNE 8, 2021

The company had a wild year, from the initial crisis management that came in the form of restructuring the company and refunding millions of dollars off their own balance sheet, to lobbying Congress, to provide support to hosts, [and] launching initiatives to provide housing for frontline healthcare workers. BC: Exactly, Reid.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Steve Blank

MARCH 26, 2019

In my experience, I saw that most business plans don’t survive first contact with customers. The class was unique in that it was 1) team-based, 2) experiential, 3) lean-driven (hypothesis testing/business model/customer development/agile engineering). As a serial entrepreneur turned educator, this didn’t make sense to me.

Lean 248

Lean Business Model Balance Sheet Video 248

Reid Hoffman

JUNE 8, 2021

The company had a wild year, from the initial crisis management that came in the form of restructuring the company and refunding millions of dollars off their own balance sheet, to lobbying Congress, to provide support to hosts, [and] launching initiatives to provide housing for frontline healthcare workers. BC: Exactly, Reid.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36