www.entrepreneur.com

SEPTEMBER 22, 2011

Franchises Franchises Home Franchise 500 Home-Based Low Cost Top New Fast Growing Top Global Biz Opportunities Franchises for Sale Franchises A Bright Forecast for a Solar Panel Installation Franchise. What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

Startup Professionals Musings

JANUARY 4, 2015

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Quantify overhead costs.

Forecast 120

Forecast Entrepreneur Burn Rate Widget 120

Up and Running

JULY 1, 2020

Operations, marketing, and personnel plans: You’ll outline the details of what operational costs, marketing budget, and additional positions you’ll need for your expansion to be a success. Financial projections: You’ll need to forecast how the expansion will improve future profitability. Planning for new regions.

Business Plan 152

Business Plan Forecast Operations Dilution 152

Feld Thoughts

OCTOBER 28, 2011

Before building his projections, Dick needs to make three main decisions: Should he build a simple cash forecast or a set of projected financial statements? Cash Forecast vs. Projected Financials – What’s the difference? A simple cash forecast is just that – it is a model that helps anticipate cash balances over time.

Revenue 127

Revenue Balance Sheet Forecast Software Review 127

Board Effect

FEBRUARY 10, 2021

Reserving funds for unexpected costs. Insurance companies have two goals-ensuring that treatments are cost effective and preventing even higher costs later on. Perform a short-term and long-term debt equity analysis. Review financial controls using tools like ratio analysis, forecasting, cost and profit control, etc.

Technical Review 66

Technical Review Artificial Inteligence Software Review Government 66

Startup Professionals Musings

MAY 27, 2016

Who would have forecast that entrepreneur Gary Ross Dahl would make millions by starting a “ pet rock ” business way back in 1975? Investors expect to hear annual revenues, average margins, customer acquisition costs and sales pipelines. Giving the wrong people money doesn’t help at the idea level.

Technical Review 134

Technical Review Intellectual Property Due Diligence Angel Investor 134

Up and Running

OCTOBER 12, 2017

Whether you’re simply trying to scale your business or seeking equity investment, having a plan is key. . Many business owners fail to see the value of regular planning and forecasting, and it hurts their businesses because they haven’t planned for potential challenges and don’t have any kind of strategy for dealing with them.

Metrics 128

Metrics Software Review Forecast Small Business 128

Up and Running

MARCH 9, 2022

The contribution margin ratio shows the contribution margin (sales – variable costs) as a percentage of your total sales. This formula will tell you how much income there is to cover fixed and variable costs and help your company set profit targets. It costs about $8 for labor and manufacturing to make each unit. .

Equity 136

Equity .Net Balance Sheet Operations 136

Up and Running

SEPTEMBER 9, 2014

Assets = Liabilities + Equity. As Investopedia defines it, “a company has to pay for all the things it has (assets) by either borrowing money (liabilities) or getting it from shareholders (shareholders’ equity).”. This is actual money paid into the company as equity investments by owners.

Balance Sheet 115

Balance Sheet Equity .Net Business Plan 115

ReadWriteStart

APRIL 26, 2011

MicroVentures does the due diligence for investors, running a variety of checks on financials, forecasts, use of funds, burn rate and so on. Everything is disclosed fully to potential investors, who make their investments in exchange for equity in the companies. Discuss.

Software Review 122

Software Review Accredited Investor Due Diligence Burn Rate 122

Both Sides of the Table

NOVEMBER 19, 2009

He would have found somebody technical and inspired that individual to work for equity or deferred payment. The company had less than $5 million in revenue yet we had a multi-tab spreadsheet doing activity-based costing on our customer service staff, operations and technology. I said that was my point. What lovely charts!

Entrepreneur 414

Entrepreneur Fractional CTO Technical Review CTO Hire 414

YoungUpstarts

MAY 17, 2019

For the good ones, challenge them to help grow the company and incentivize them to stay through promotions, profit sharing, or equity. Use the cash forecast in the report to secure better terms on your business loan or lock the owner into seller financing. Firing bad employees will make the good ones optimistic of a turnaround.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

Up and Running

AUGUST 28, 2018

Revisit and update it regularly by comparing your forecasts to your actuals and adjusting as necessary. Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Sales forecast : projections of what you think you will sell in a given timeframe (one to three years). Be specific.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

OnlyOnce

JULY 9, 2013

Chapter 2: Defining and Testing the Story…Start Out By Admitting You’re Wrong, A Lean Business Plan Template, Problem, Solution, Key Metrics, Unique Value Proposition and Unfair Advantages, Channels, Customer Segments, Cost Structure and Revenue Streams. Budgeting in a Context of Uncertainty, Forecast, Early and Often.

Startup 95

Startup Advisory Board Elevator Pitch Forecast 95

ReadWriteStart

JULY 18, 2011

He believes that equity need not be distributed equally, as long as everyone involved is happy with their arrangement. And as long as founders don't have an argument about equity shares in front of the investors they are pitching. That will come at the cost of another 20 to 25% of the company.

Investment Bankers 153

Investment Bankers Technical Review Cofounder Due Diligence 153

Startup Professionals Musings

DECEMBER 11, 2017

From my perspective, projecting financial returns is part of the homework every business person needs to do in sizing customer opportunity, product costs, pricing, competition and customer value, before expending their own resources in a highly risky venture. Per-unit cost less your cost per unit sold is your gross profit margin.

Burn Rate 144

Burn Rate Forecast Angel Investor Revenue 144

Up and Running

JULY 14, 2015

Now, if you only needed $2 million of new funding, the investor would receive 50 percent equity. If the new funding increases to $3 million, however, they would have a 60 percent equity stake on the same valuation. See Also Should I Borrow Money, Seek Investment, or Bootstrap My Business?

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. Investors love to be able to see what you told them in forecasts in prior years and then compare with how you actually performed. and then asking to take a brochure home with you.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

YoungUpstarts

JULY 2, 2019

With that being said, pro forma financial statements can still play their part as an important tool to lower potential risks and threats from competitors, help to plan for the future, and assist with securing loans or funding capital in return for equity. From a business perspective, it essentially means forecasted, predicted, or assumed.

Balance Sheet 147

Balance Sheet Forecast .Net Revenue 147

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture. 

Finance 83

Finance Bootstrapping Startup Equity 83

Berkonomics

FEBRUARY 11, 2021

Then they calculate cost of sales, and then project their expenses, to find the bottom-line profit or loss each projected month. Project your revenues and costs as in the original exercise. Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month.

.Net 62

.Net Forecast Salary Revenue 62

Startup Professionals Musings

FEBRUARY 13, 2016

The business model has to clearly define who is your customer, market penetration expected, how much customers pay versus total costs and the investment required to sustain cash flow. How big is the funding request, and how much equity will you give? Quantify founder investments, both cash and sweat-equity.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Hearpreneur

DECEMBER 18, 2022

I'm considering offering my guests additional personalised experiences for an extra cost. Netflix's approach of combining customer data and algorithms to forecast the movies a consumer will choose—even without first looking for it—is probably an appropriate example. I'm an extrovert, so making new friends is my thing.

Affiliate 62

Affiliate United States Entrepreneur Software Review 62

Up and Running

JULY 22, 2014

Sales forecast. your “cost of sale” or “cost of goods sold” (COGS)—keep in mind, some types of companies, such as a services firm, may not have COGS. equity (for most small businesses, this is just the owner’s equity, but it could include investors’ shares, retained earnings, stock proceeds, etc.). Sales forecast.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

YoungUpstarts

MARCH 13, 2018

Loans success stories are only seen among people who have thoroughly considered their options and forecasted the financial aspects of taking out a loan. For instance, you may get a loan which is secured against the equity in your home, meaning that should you default on your repayments, your home will be repossessed.

Forecast 100

Forecast Security Equity Cost 100

crowdSPRING Blog

JANUARY 5, 2012

CEC’s Startup Forecast – “Never been a better time to start a company in Chicago” – [link]. Experienced entrepreneurs preserve equity – [link]. SEO Pricing: 600+ Agencies Share Costs of Services & Pricing Models – [link]. Mocked And Misunderstood – [link].

Social Media 92

Social Media Small Business Design Media 92

Berkonomics

MARCH 21, 2019

If the business is not a startup, expect to supply income statements for the past several years as well, to emphasize trends in revenue and costs. Careful about “hockey stick” forecasts. The more you ask for – the more equity you give up. Projections for your future. How much money can you get? .

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Steve Blank

APRIL 1, 2020

Any place with a fixed cost that relies on foot traffic will come under pressure. Cut costs to stay alive for 24 months. Forecasted recovery date. Sales pipeline/forecast. Payroll costs/other variable costs. Award equity to employees equal to the value of their reduced salaries. External Assessment.

South Korea 333

South Korea Salary Business Model China 333

Both Sides of the Table

OCTOBER 14, 2015

The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. I encouraged them to stay in shorter-term space, higher per-unit costs but no capital outlays. I put up this slide as part of my discussion. Does this suck?

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Up and Running

FEBRUARY 12, 2019

Investors want to hear about your first customers, other investments put into the company (including your own sweat equity), key media placement, signed letters of intent (LOI) to purchase/partner, product and customer milestones , key hires, and so on. is our customer acquisition cost (CAC). is our customer acquisition cost (CAC).

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

Feld Thoughts

AUGUST 12, 2011

When we were last with Dick and Jane on Finance Fridays, our fearless entrepreneurs were figuring out how to split up their founders equity and account for an investment from Jane. Build a financial model that forecasts the P&L. Revenues and costs should both be based off of a robust set of assumptions. historical data).

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

Cracking the Code

MARCH 12, 2010

So, here is the first edition, including the recent Q4 2009 earnings and the updated 2010 forecast. If we consider that 2009 was probably the worst year in the past 5 years, forecasting the same growth for 2010 is not very encouraging. McKinsey highlight #1: the art of cost cutting or. ► 12/10 - 12/17. (2). Zune vs. Ipod.

Software Review 63

Software Review Technical Review Cloud Forecast 63

Up and Running

SEPTEMBER 25, 2014

The challenge for most: Many business owners think in terms of sales, costs, and expenses. So they must plan, forecast, and manage cash flow to be sure that they don’t run out of money. It’s important to forecast sales, costs, and expenses, and track the results to catch changes fast. That takes money.

Forecast 107

Forecast Sales Cost Equity 107

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. This allows them to calculate burn rates, break-even points and forecast the company valuation over time. How the solution and business model work to fund the business.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

The Next Web

MARCH 2, 2014

This process included several rounds of financial forecasting to understand the cost of achieving where we wanted the business and brand to be, and whether we could pay for that cost ourselves. Should we finance with debt or equity? What are the main considerations when exploring third-party investments?

Liquidity Event 139

Liquidity Event Equity Finance Stock Options 139