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5 Startup Cost Realities Most Founders Underestimate

Startup Professionals Musings

Now, with powerful high-level tools and open source software, winning smartphone apps can be built by a good hacker for a few thousand dollars. Unfortunately, even today, building a good product doesn’t guarantee you a business. Unanticipated pivots, quality write-offs, and shrinkage.

Cost 264
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The Best Ways to Save Money as a New Startup

ReadWriteStart

Oftentimes, new startups are inclined to cut costs that seem superfluous or unnecessary for the core business model to function. But when you cut something that is essential in business — it is problematic; digital marketing is the best way for a startup to increase brand awareness and attract new paying customers.

Startup 106
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Similarly, when Flexible VC structures are based off of the founder’s own compensation (often via salary or dividends), investors are specifically tying their returns to the financial success of the founder.

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Building in public forces true competitive advantage

A Smart Bear: Startups and Marketing for Geeks

You are therefore forced to build some other competitive advantage into your business. For example, if Etsy open-sourced their entire stack, would that make it easy for a competitor to overtake Etsy? No, because Etsy has built a marketplace ; the presence of buyers and sellers is their primary asset.

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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

Business Model I would like to propose that in addition to team, product, and market, there is actually a fourth, equally important, core element of startups, which is the need for a viable business model. However there is a lot of value in looking at these same metrics for all other businesses.

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This is Not Your Father’s Software Industry

Andrew Payne

Expensive software stacks, primitive tools, million dollar server farms, and 50+ person development teams have given way to free, open source, high-quality tools, small teams, and rentable infrastructure. Now, many companies use software to enable other services and business models.

Software 111
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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

With a portfolio that includes food, tech, and services, the fund is industry-agnostic and focused on the overlooked and underrepresented with high-margin business models. They have open-sourced their investment structure , now on version 3.0, Any additional funds they take out of the business are considered dividends.

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