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ProfessorVC: Burn Rate

Professor VC

Burn Rate. The burn rates of my portfolio companies is certainly top of mind right now, but thats not what this post is about. Since Im not a fan of any of those genres, I have been looking forward to the release of his latest work, Burn Rate. Waah.Do I have to build a financial model? Burn Rate.

Making Financial Projections is Not Rocket Science

Startup Professionals Musings

Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Margin is everything.

Why Board Meetings Suck – Part 1 of 2

Steve Blank

Yet boards of large companies exist to monitor efficient strategy and execution of a known business model. Jonathan Swift. It’s time.

Reinventing the Board Meeting – Part 1 of 2

Steve Blank

Yet boards of large companies exist to monitor efficient strategy and execution of a known business model. Jonathan Swift. It’s time.

8 Ways An Investor Pitch Differs From A Product Pitch

Startup Professionals Musings

When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business.

No Accounting For Startups

Steve Blank

Startups that are searching for a business model need to keep score differently than large companies that are executing a known business model.

9 Metrics Every Entrepreneur Should Know About Their Business Offhand

Up and Running

Yet you might be surprised how easily business owners are stumped by questions like these. Renewal Rates. Burn Rate.

10 Incentives For Entrepreneurs To Bootstrap Their Startup

Startup Professionals Musings

Count on several months of effort and costly assistance to court investors, with less than a 10% success rate. Marty Zwilling.

3 Ways To Ensure Your Startup Has A Top-Notch Team

YoungUpstarts

While you absolutely need to keep an eye on earnings and burn rate, human capital is ultimately the fuel that makes the machine run.

8 Ways To Prepare Your Startup For Obstacles Ahead

Startup Professionals Musings

One preparation example is the value of building a business plan before you start. Scaling the business requires repeatable processes.

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

If I’m right my only hope is that more companies actually get funded and more companies reduce burn and survive. All of these are false.

Customer Development for Web Startups

Steve Blank

In my book, “ The Four Steps to the Epiphany ” I use enterprise software as the business model example. Customer Development In Context.

Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

In order to overcome such risks, the onus is on the investor to dive deep and unpack the actual unit economics in the underlying business.

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8 Pieces of Advice For CEOs That Need To Scale Their Startups

YoungUpstarts

“Looking to scale is a “rinse and repeat” function, as a start-up the job is to identify a repeatable and scalable business model.

Business Plan Financial Forecasts Test Your Savvy

Startup Professionals Musings

Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Margin is everything.

Adding Slides Does Not Enhance Your Investor Pitch

Gust

Every startup needs both a business plan and an investor presentation, completed before you formally approach any investors. Business model.

Crisis Management by Firing Executives – There’s A Better Way

Steve Blank

Notice that the traditional product introduction model leads to a product launch and the  execution of a revenue plan. Albert Einstein. Yikes.

Adding Slides Does Not Enhance Your Investor Pitch

Startup Professionals Musings

Every startup needs both a business plan and an investor presentation, completed before you formally approach any investors. Business model.

10 Reasons for a Startup to Skip Outside Investors

Startup Professionals Musings

Count on several months of effort and costly assistance to court investors, with less than a 10% success rate. Marty Zwilling.

Is Your Startup Dangerously Rushing to Scale

Early Growth Financial Services

Startups are often in a rush: bigger, better, faster. I see it all the time: businesses striving to scale, to accelerate the growth of their business as quickly as possible—consequences be damned! Scaling is certainly a goal for businesses at some point, but scaling as soon as possible isn’t the answer.

Four Easy Steps to Credible Startup Financials

Startup Professionals Musings

Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Margin is everything.

Your Financial Model Is A Work Of Fiction; Build It Anyway

Seed Stage Capital

Yet building a solid financial model is absolutely one of the best things you can do for your startup. Why Build A Model? Many Thanks!

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Limit an Investor Pitch to 10 Pages and 10 Minutes

Startup Professionals Musings

Every startup needs both a business plan and an investor presentation, completed before you formally approach any investors. Business model.

When to step on the gas and go for it?

Will Price

When should you grow the burn rate- add headcount, marketing spend, operating capacity? Such an answer requires the characterization of market size, revenue potential, strategic value, Lesson: spend resources to develop answers to customer demand, market size, financial model, etc. Now, "saving" money was costing us business.

Steve Blank's SLL Keynote – It's a “Must Watch”

Startup Marketing Blog

Some of my favorite quote are: Role of the Entrepreneur Your job as an entrepreneur in a startup is to  search for a repeatable and scalable business model. When When you find it, your job is to build a company around that business model. Search for a business model rather than write a business plan.

It Must Be A Marketing Problem

Steve Blank

The Customer Development process is the way startups quickly iterate and test each element of their business model , reducing customer and market risk. In Discovery startups take all their hypotheses about the business model: product, market, customers, channel, etc. Six is a Proxy for Burn Rate.

Being an Angel for Fun and Profit: Three Ways to put “Profit” back in the Equation

startupengineering

Now of those, how many would be likely to go into business with, or buy from, your entrepreneur? Instead, if you want to be an angel, and also want to make money, try focusing on these three things: 1)       Systematically help your portfolio companies de-risk their businesses. Who wouldn’t want to be an angel?  It isn’t. 

What is Growth Equity, Anyway? And When Do You Need It?

Fresh Inc.: The Staff Blog

All that remains is to scale the business, file for your IPO, and start shopping for your jet, right? Congratulations.

IPO 12

Managing Startups: Best Posts of 2011

Platforms and Networks

Business Models Alex Osterwalder, coauthor of Business Model Generation , which introduces the business model canvas widely used by entrepreneurs, lists eight questions you should ask about your business model. David Skok analyzes key factors for success with the SaaS model.

Viral 14

Do capital efficient businesses exist anymore?

Startup Economy

We keep hearing from both investors and entrepreneurs that building a capital efficient business is the key to survival in this economy. We heard that plenty of times, but do capital efficient businesses exist? So what exactly is a capital efficient business? In summary, high value is created with as little capital as possible.

25 Best Startup Failure Post-Mortems of All Time

www.chubbybrain.com

We didn’t find post-mortems by investors (VCs, angels, etc) except for one by Roger Ehrenberg.  We’d love to see these given the number of businesses you see and ultimately invest in.  It would be an admission that you’re not infallible, but we already know that. We had the wrong business model. Education.

Seven Secrets of Startup Success

47 Hats

Whether you’re funding the business yourself, have raised angel money, or have raised venture, capital is frequently hard to come by. Now what?

CPA 17

Lessons Learned: Don't launch

Startup Lessons Learned

In some businesses, especially in certain industries like traditional enterprise software, you simply cannot bring a new product to market on your own. Figuring this out takes time, and few entrepreneurs have the patience to wait it out, because the business plan does such a good job of explaining what customers are going to think.

allensblog: Entrepreneurs: Important to Understand When Are You.

Allen's Blog

Venture Startup Economics -- The "Crowd-scaled" Business Model » March 31, 2012. ", that is, how many months of burn rate do I need to have before I run out of money.  allensblog. Thoughts from a startup sherpa. Archives. Profile. Subscribe. « Smartphones Have Replaced. Reblog (0).

ProfessorVC: Crowdfunding - Good Idea or Really, Really Stupid.

Professor VC

Crowdfunding has the unique ability to become an incremental source of funding for startups and small businesses. Burn Rate.

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ProfessorVC: Waah.Do I have to build a financial model?

Professor VC

Waah.Do I have to build a financial model? I get asked this question a lot by entrepreneurs (and students). To that last one, there is certainly some truth as the standard time vs. revenue chart in most business plans looks like this: Im not teaching Entrepreneurial Finance this semester for the first time since Fall 2007. Burn Rate.

More Thoughts on MBA’s and Startups

Leveraging Ideas

An employee’s success is measured against what aspect of the business they can advance, relative to the hunk of the burn rate they are eating. Early-stage “business development&# is almost impossible to quantify. no more capital than seed or A round). Skills vs. Stage: Early-Stage. Compensation. Summary.

Why Content Favors the Old (Entrepreneur)

pandodaily.com

But it’s possible that as the secret sauce of new media swings farther from disruptive technology and business models to a focus on curated and quality content, it’s the older entrepreneurs who are in the pole position. That’s the beauty of a great content business. Follow PandoDaily: Search. Main menu. Deals.

Raise What You Need, and Then Some

Mark Birch

depending on your business model.  Getting funded is one thing, but startup budgeting is a whole other matter. 

Customer Development Manifesto: The Path of Warriors and Winners.

Steve Blank

This post describes a solution – the  Customer Development Model. This post describes such a model. Written by Chris F. Order Here.