A Smart Bear: Startups and Marketing for Geeks
OCTOBER 4, 2016
past product/market fit and into tens of millions in revenue), you realize that cancellation scales with total customers whereas growth scales with sales and marketing costs, which means cancellation necessarily and always outgrows inbound activity, thus growth ceases. Once you’re scaling (i.e.
A Smart Bear: Startups and Marketing for Geeks
JANUARY 7, 2014
It’s not a ruse devised by greedy vulture capitalists vying for extra points of equity. Today you have a business plan, featuring a plausible growth trajectory (neither too conservative nor too optimistic), and an associated cost structure to drive signups and service customers. You do need more money than you think.
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A Smart Bear: Startups and Marketing for Geeks
FEBRUARY 11, 2014
If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity). Now let’s cover those nuances I mentioned.
A Smart Bear: Startups and Marketing for Geeks
APRIL 24, 2012
So let’s re-do it: Say you’ll make $75k/year salary but you were making $150k/year as a consultant, so your nominal opportunity cost of being with this company for four years is $300k. In short, your $95k investment buys you far more equity than your time does, whereas your time is much more valuable to you than your money.
A Smart Bear: Startups and Marketing for Geeks
OCTOBER 23, 2012
After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. In other words, they’re back to seeking product/market fit, and only an immense market (and excellent fit) will counterbalance their crushing costs and pay back past investments. And it is magic.
A Smart Bear: Startups and Marketing for Geeks
MARCH 21, 2017
In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”. Even if this costs more than 2 years of in-house assembly, it’s still worth it, due to accelerating revenue growth due to up-sales and market-differentiation.
A Smart Bear: Startups and Marketing for Geeks
MARCH 11, 2014
After that, I did it for a private equity firm then we became a part of a larger corporation. How do you split equity? Edwin: Yeah, one of the challenges is that meeting cost is not a separate line item on the P&L statement so nobody attacks it. You know that I ran WinZip before. I first did it for the founder.
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