Remove Burn Rate Remove Business Model Remove Revenue Remove Sales
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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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The Virus Survival Strategy For Your Startup

Steve Blank

The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? What does your new business model look like? Burn Rate and Runway. To answer the first question, take stock of your current gross burn rate i.e. how much cash are you spending each month.

Burn Rate 436
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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. What does this have to do with missing your sales plan?

Burn Rate 248
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Apple Vision Pro – Tech in the Search of a Market

Steve Blank

Marketing and capital expenses (new factory, high R&D expense) were predicated on consumer-scale sales. In addition, they’ve created an entirely new $85+ billion subscription business model; the App Store, iTunes, Apple Care, Apple Pay, Apple Cash, Apple Arcade, Apple Music, Apple TV.

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

Up and Running

.” 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. Will businesses open slowly? Impact on sales: If sales go down 30%? What is a scenario analysis?

Forecast 120
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Crisis Management by Firing Executives – There’s A Better Way

Steve Blank

For decades startups were managed by pretending the company would follow a predictable path (revenue plan, scale, etc.) The Revenue Plan – The Third Fatal Assumption. Notice that the traditional product introduction model leads to a product launch and the execution of a revenue plan. that make up a business model.

Burn Rate 247
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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.