Remove Cost Remove Down Round Remove Operations Remove Revenue
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A heartbreaking story about time and money.

Berkonomics

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. How about young or pre-revenue companies? And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Net burn is the amount of money you are losing per month.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Reasons for funding. ? Scale up your operations. Now you may want to scale up your operations or expand your presence. Incubators and Accelerators.

Startup 150
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Wasted time is money lost.

Berkonomics

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. Ignoring cost of product for a moment to make a point, saving a month’s fixed overhead by making processes more efficient, could easily double profits for the year.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Ah, but today’s Internet companies have real revenue! New investors hate down rounds. When your competition does irrational things to grow fueled by low-cost capital it makes it harder for you to compete by playing by the conventional rules. I said that at the Founder Showcase, too. and profits! That’s a fact.

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Wasted time is money lost. (And another story of lost opportunity.)

Berkonomics

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. And we were able to secure that investment along with a partner from that firm joining our board. Hedging against downturns The fight for quality.

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Sensitivity Analysis key in startup financial projections

NZ Entrepreneur

The statistics show that even though most founders bet their time and resources that their startups will be the best in the world, 90% of those new startups won’t be in operation in 10-15 years. For example, “How will unit cost affect our capital requirements and how will product pricing affect revenue?”

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