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Revenue Recognition’s Effect On M&A

YoungUpstarts

There has been a lot of chatter regarding changes in revenue recognition criteria lately, but the effects it will have on the evaluation of companies planning an exit is just beginning to emerge. Specifically, the new standard will follow a five step model for revenue recognition: Identify the contract (the deal that has been reached).

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Praying to the God of Valuation

Both Sides of the Table

There were startups and a software industry but barely. We had nascent revenues, ridiculous cost structures and unrealistic valuations. In those years I learned to properly build product, price products, sell products and serve customers. There was no money train. It was 1991. We still loved every moment. Until we weren’t.

Valuation 466
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. Gross burn is the total amount of money you are spending per month.

Burn Rate 383
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Rules of Thumb Business Valuation Methods Explained

Up and Running

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). Software (system and application) 0.7 Oil and Gas 0.7

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15 Ways A Brand New Small Business Can Look Established

YoungUpstarts

Have a great logo and potential customers will immediately feel a certain way about your brand. Hire a professional, or at the least, use inexpensive design software like Tailor Brands to create a great logo yourself. Or reviews! You need reviews to look legitimate. Don’t skimp on a logo. Keep it clean.

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How to Improve Cash Flow

Up and Running

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. One simple way to improve cash flow is to review and clean up your financial statements. Keep good books.

Forecast 114
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How to Write a Business Plan for a Cannabis Company

Up and Running

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. The global market for CBD oils is expanding due to their medical efficacy. The problem is that they sell extremely similar products, and customers in the area are becoming more adventurous and seeking variety. Key customers.