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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in.

Burn Rate 383
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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? This total number is your Gross Burn Rate. Gross burn rate = (Total variable expenses + Total fixed expenses).

Burn Rate 100
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Startup Sales – Why Hiring Seasoned Reps May Not Work

Both Sides of the Table

A while back I wrote a bunch of posts on Sales & Marketing and have been meaning to get back to that theme for a while. Even if you don’t have “direct&# sales I would tell you that “everything is a sale&# including fund raising, hiring, getting press and doing business development. You learn by asking.

Hiring 346
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Why Founders Should Know How to Code

Steve Blank

I was driving home from the BIO conference in San Diego last month and had lots of time for a phone call with Dave, an ex student and now a founder who wanted to update me on his Customer Discovery progress. Customer Discovery. He worked hard to deeply understand the customer problems of these two customer segments.

Cofounder 336
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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. The first step of Customer Development is called Customer Discovery. outside the building and test them in front of customers. Six is a Proxy for Burn Rate.

Burn Rate 248
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The Virus Survival Strategy For Your Startup

Steve Blank

If you’re running a startup or small business, your first priority (after your family) is keeping your employees and customers safe. The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? Burn Rate and Runway. Are your customers closing for the next few weeks?

Burn Rate 436
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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. The moment I saw the product I knew every one of my professional graphics customers (ad agencies, freelancers, photo studios, etc.) would want to use it. In fact, they would have paid a premium for it.

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