Burn Rate Cost Demand Venture Capital 
Startup Professionals Musings
OCTOBER 16, 2023
External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Projecting financials is a natural extension of the homework every entrepreneur needs to do on customer opportunity size, product costs, pricing, competition and customer value. Quantify overhead costs.
Startup Professionals Musings
FEBRUARY 5, 2021
External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Per-unit cost less cost of goods sold is your gross profit or margin. Quantify overhead costs. It’s amazing how fasts costs escalate as you grow. Doubling revenue each year is a good target.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
David Teten
NOVEMBER 26, 2019
Inevitably, things cost more and take longer than expected. Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate. Companies are often challenged in their ability to track the metrics and meet the associated demands of all of these audiences.
Both Sides of the Table
JUNE 17, 2017
If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. They don’t want high burn rates but they will never fund slow growth. COGS” represents the amount that each sale costs you.
Startup Professionals Musings
JANUARY 4, 2015
External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Per-unit cost less cost of goods sold is your gross profit or margin. Quantify overhead costs. It’s amazing how fasts costs escalate as you grow. Doubling revenue each year is a good target.
Steve Blank
SEPTEMBER 7, 2009
The Startup Death Spiral: The Cost of Getting Product Launch Wrong By the time of first customer ship, if a startup does not understand its market and customers, failure unfolds in a stylized ritual, almost like a Japanese Noh play. She quickly comes to the conclusion that the company’s positioning and marketing strategy were incorrect.
Startup Professionals Musings
JANUARY 7, 2014
Some entrepreneurs can’t decide if they want to be a Limited Liability Corporation (LLC) or a C-corporation, or they don’t have the money, so they put off doing anything until the first venture capital round, or until the first lawsuit occurs. A variation on this theme is promising a burn rate to investors than you can’t deliver.
Expert insights. Personalized for you.
290 
Let's personalize your content