Remove Burn Rate Remove Business Model Remove Cost Remove Revenue
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Is the Lean Startup Dead?

Steve Blank

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan. Then one day it was over. IPOs dried up.

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The Importance of Burn Rate and Cash Runway

Up and Running

This can be a daunting task, but the best place to start is understanding and calculating your cash burn rate and your cash runway. How do you calculate the burn rate? You’ll also have variable expenses such as salaries, travel, supplies, and other services you use to run your business. You have positive cash flow.

Burn Rate 100
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Apple Vision Pro – Tech in the Search of a Market

Steve Blank

We’ll sell them the CDROM drives as well.” (The Kodak CDROM drives were the size of professional audio equipment and depending on the model, costing $600-$1000 in today’s dollars.) (And Marketing and capital expenses (new factory, high R&D expense) were predicated on consumer-scale sales. So what’s the lesson for Apple?

Search 256
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Turn What-if to What-Now: The Importance of Scenario Analysis

Up and Running

What will be the cost of letting somebody go when it includes recruiting and retaining a replacement later when the economy recovers? Each scenario combines the key numbers in the hypothetical case and explores the impact on the bottom line, and helps you define your cash burn rate and runway. Build scenarios using spreadsheets.

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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. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. Managing the Business. Here’s why.

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10 Incentives For Entrepreneurs To Bootstrap Their Startup

Startup Professionals Musings

Entrepreneurs who plan to complete a business plan the first month, find an investor the second, and roll out a product the third month are just kidding themselves. Count on several months of effort and costly assistance to court investors, with less than a 10% success rate. The best partners are ones who share costs and risks.

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Vision versus Hallucination – Founders and Pivots

Steve Blank

Tossing their agile development process and at times their entire business model in the air, the company would go into fire-drill mode and engineering would start working on whatever his latest insight was. ” “A pivot is a substantive change to one or more of components to your business model.

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