Steve Blank

FEBRUARY 22, 2010

I had been confused for years why I had to update an income statement each board meeting that said zero for 18 months before we had any revenue. What’s the distribution channel? Regardless of your type of business model you should be tracking cash burn rate, months of cash left, time to cash flow breakeven. Financials.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Startup Professionals Musings

JANUARY 4, 2015

Yet every business requires revenue and volumes, as certainly as it requires a product to sell. Project based on your market size how many widgets you will sell in every channel. Doubling revenue each year is a good target. Project your cash burn rate to keep at least 18 months between venture capital or angel investments.

Forecast 120

Forecast Entrepreneur Burn Rate Widget 120

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. Partnerships, distribution channels and pricing models should be included. “If Projected revenues and expenses over the strategic period. Immediate investment requirements and use of funds.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Steve Blank

AUGUST 27, 2012

Other weeks Yuri would be buffeted by the realities of his burn rate, declining bank account and depressing comments from customers. He should make sure that there aren’t other parts of the business model (revenue model, pricing, partners, channel, etc.)

Founder 316

Founder Cofounder Advisory Board Burn Rate 316

VC Cafe

NOVEMBER 2, 2019

In SaaS the main benchmarks being measured are revenue growth, sales efficiency (unit economics), churn and burn rate. Example of Baremetrics revenue per user benchmarks. Part of the challenge in deep tech is getting to revenue and scaling it. Software as a Service (Saas) benchmarks. Consumer apps and services.

B2C 141

B2C Technical Review Startup Retention 141

Hippoland

FEBRUARY 7, 2016

lifetime value] [How much revenue are you making and how has this changed over the last few months? What customer acquisition channels / what have they tried / not tried / etc] [Is this growing? / May or may not ask this depending on if our hypothetical VC firm leads rounds or not] [What is a team’s burn rate?]

Burn Rate 48

Burn Rate IP Cofounder Differentiation 48

Steve Blank

NOVEMBER 2, 2009

And I can even imagine cases where it might burn more cash than a traditional startup. The key contributors to an out-of-control burn rate is 1) hiring a sales force too early, 2) turning on the demand creation activities too early, 3) developing something other than the minimum feature set for first customer ship. Lets see why.

Lean 244

Lean Silicon Valley Startup RSS 244

Startup Professionals Musings

JULY 15, 2013

Next comes sales volume by channel. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. The holy grail is break-even, when revenues first catch up with the outflow. That should be true even if your customer is really a distributor. Cash flow is king.

Forecast 238

Forecast Business Plan Burn Rate .Net 238

Startup Professionals Musings

JUNE 9, 2012

Next comes sales volume by channel. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. The holy grail is break-even, when revenues first catch up with the outflow. That should be true even if your customer is really a distributor. Cash flow is king.

Forecast 238

Forecast Burn Rate .Net Business Model 238

Startup Professionals Musings

MARCH 22, 2011

Next comes sales volume by channel. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. The holy grail is break-even, when revenues first catch up with the outflow. That should be true even if your customer is really a distributor. Cash flow is king.

Forecast 230

Forecast Burn Rate Startup .Net 230

Hearpreneur

JULY 7, 2019

Over the next 10 years, entrepreneurship will reach a peak of new startups, increasing the burn rate of founders and the failure rate for new ecosystems. Combining two or three similar companies will bring more clients, shared resources and gained revenue. #10- Solopreneurs will join other progressive businesses.

Entrepreneur 93

Entrepreneur Distribution Employee Arizona 93

Startup Professionals Musings

MARCH 25, 2010

Next comes sales volume by channel. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. The holy grail is break-even, when revenues first catch up with the outflow. That should be true even if your customer is really a distributor. Cash flow is king.

Forecast 151

Forecast Startup Burn Rate .Net 151

Both Sides of the Table

MARCH 30, 2016

Mark dutifully went to partner meetings, back-channel references began, firms started calling existing VCs to “test prices” and we started debating whom our best partner would be. Invoca was raising at the tail end of this market phenomenon at this time doing tens of millions in SaaS recurring revenue and growing at a nice clip.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150