article thumbnail

Thinking about pricing - Startups and angels: Along the way to success

Tim Keane

Of course, everyone understands that somewhere in the equation theres revenue, whether directly or indirectly. Of course, everyone understands that somewhere in the equation theres revenue, whether directly or indirectly. John Mullins: Getting to Plan B: Breaking Through to a Better Business Model. Thinking about pricing.

article thumbnail

How should I finance my new venture? - Startups and angels: Along.

Tim Keane

If, on the other hand, there is some near term prospect of cash flow (say within six months or a year) but no ability to repay in the meantime, then the entrepreneur may try and find a way to finance his “pre-revenue period” using friends and family money that accepts a somewhat lower payment in recognition of a relationship beyond just investing.

Finance 83
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Is Business Model Analysis Important To You? - Startups and angels.

Tim Keane

Is Business Model Analysis Important To You? Investors love entrepreneurs who understand their business model, and can describe it accurately. In my mind, a "business model" reveals the structure of the profit engine that underlies the venture. Is Business Model Analysis Important To You?

article thumbnail

Long term thinking -- for entrepreneurs - Startups and angels: Along.

Tim Keane

At this point, RTMS had one customer paying them what amounted to all of their annual revenue - plus or minus $500,000 I think. If they mailed the catalogs at each individual city location from southern Illinois no northern Wisconsin, they'd get there in time. Resources for startups. Angel Capital Association website. Google Ads.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue.

article thumbnail

How to prepare a sales forecast for a business plan - Startups and.

Tim Keane

How to prepare a sales forecast for a business plan. First develop a business model.  By this time (in six months) we will be getting 20 orders per day from these two callers and our revenue will stabilize at that rate. How to prepare a sales forecast for a business plan. First develop a business model.

article thumbnail

What's the Best Use of Your Borrowing Power? - Startups and.

Tim Keane

I just talked to a business owner the other day who has grown her startup nicely - 15% a year or so - up to revenue of a bit over $2.5MM. Now, (in the service business,) the venture is at the point where she could accelerate its growth. in new revenue. On revenue of $2.5MM, thats a 24% increase just to pay the bank.).