Startup Professionals Musings

DECEMBER 5, 2021

Every time I challenge a business plan with little or no budget for marketing, I get the answer that they will be using “viral” marketing, which costs nothing. At any rate, “buzz-worthy” and “viral” are marketing illusions that cost big money to create, and these are only the beginning. That’s a double death wish. Marty Zwilling.

Viral 348

Viral Marketing SEM Campaign 348

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

The Startup Magazine

MARCH 7, 2024

Guest Author: Danish Ahmed, Founder of startuptools.ai. Companies are turning to AI to streamline their operations, notably in areas like customer service, cybersecurity, and fraud prevention. Furthermore, AI facilitates more accurate financial planning by estimating revenues, minimizing costs , and increasing profitability.

Artificial Inteligence 118

Artificial Inteligence Entrepreneur Algorithm Cofounder 118

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

ReadWriteStart

DECEMBER 15, 2022

Industry-specific domain experience becomes critical when identifying operational pain points ripe for transformation. Client work serves as an additional source of revenue to form new startups. This outside work provides a valuable source of revenue able to be used to fund operations.

Incubator 188

Incubator Startup Software Developers Software Development 188

YoungUpstarts

JANUARY 11, 2021

by Swapnil Shinde, Co-Founder and CEO of Zeni. Don’t rely on spreadsheets to track revenue and expenses; start using accounting tools as soon as possible. Do you categorize your revenue and costs using departments and classes? Don’t use cash basis accounting; track revenue and costs on an accrual basis.

Small Business 208

Small Business Startup Cofounder Vertical 208

The Startup Magazine

FEBRUARY 21, 2024

Arif Bhalwani is the co-founder and CEO of Third Eye Capital (TEC) in Toronto, Canada. We engage intimately with businesses and their assets, understanding their operations, aspirations, and the hurdles they face. Are there new revenue streams you can tap into? The firm has made more than $4.5 ARIF BHALWANI: Sure.

Technical Review 132

Technical Review Due Diligence Bankruptcy Intellectual Property 132

YoungUpstarts

DECEMBER 7, 2017

Two conditions that do matter to your startup’s out-year viability are the cost and length of its product development cycle. Longer, costlier cycles drain cash on hand while delaying the onset of crucial revenue streams. Launching your startup in a down economy doesn’t make it any less likely to last.

Cost 100

Cost Developer Small Business Administration Marketing 100

Startup Professionals Musings

JULY 13, 2012

Every time I challenge a business plan with little or no budget for marketing, I get the answer that they will be using “viral” marketing, which costs nothing. The founder explains that the product is so “buzz-worthy” that usage will spread rapidly through word-of-mouth only, meaning people loving it and recommending it to their friends.

Viral 238

Viral Cost Marketing SEM 238

Berkonomics

OCTOBER 5, 2023

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? Why did the company abandon a profitable market, even if it could not generate $100 million a year in revenues?”

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Startup Professionals Musings

SEPTEMBER 29, 2018

Things will cost more than you expect. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Up and Running

JULY 28, 2022

Not only do these requirements ensure that businesses operate within the law but it also protects small business owners and their consumers. . A small business is an independently owned and operated entity that engages in commercial activity and fulfills the set industry-specific size standards. What legally defines a small business?

Small Business 167

Small Business Intellectual Property Cofounder Software Review 167

Both Sides of the Table

DECEMBER 27, 2011

If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. ” If you’re not profitable you’re purely a cost center to them. Simplifying: Revenue -. Cost of Goods Sold (COGS) =.

Startup 418

Startup Revenue Technical Review Flash 418

Up and Running

OCTOBER 7, 2019

A data-driven approach can help you make accurate and timely business decisions to meet market demands and improve cost-efficiency. However, as a founder of a small business or startup, you’re juggling many things. KPIs Every Founder Should Track. This metric helps determine how much cash you need for operation and expansion.

Founder 71

Founder Retention Metrics Technical Review 71

Startup Professionals Musings

FEBRUARY 24, 2019

Every time I challenge a business plan with little or no budget for marketing, I get the answer that they will be using “viral” marketing, which costs nothing. The founder explains that the product is so “buzz-worthy” that usage will spread rapidly through word-of-mouth only, meaning people loving it and recommending it to their friends.

Viral 268

Viral Marketing SEM Campaign 268

Mucker Lab

OCTOBER 10, 2023

In navigating the transition from founder-led sales to a structured approach, the pivotal question arises: when to hire a Sales Development Representative (SDR) or an Account Executive (AE) ? However, for early-stage startups with limited resources, a fractional CRO (Chief Revenue Officer) can be a cost-effective option.

Early Stage 78

Early Stage Sales Developer Development Team Review 78

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Where else can fast-growing companies get funding?

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

SEPTEMBER 28, 2014

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. 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.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

The Next Web

FEBRUARY 18, 2017

But, even more important, is how much it costs for an enterprise to move their money around. After all, just because you know how to generate revenue, doesn’t mean you know how to generate a profit. Expenses add up and can easily get out of control.

Cost 167

Cost Operations Startup Revenue 167

YoungUpstarts

OCTOBER 13, 2020

by Simone Semprini, CEO & Co-Founder, TourScanner. The global lockdown, due to the pandemic, has forced companies to digitize their operations. In this way, we can reduce the time spent in commuting, reduce the environmental impact of our activity, optimize living costs and improve our work-life balance.

Technical Review 278

Technical Review United States China Cofounder 278

Up and Running

JULY 18, 2017

As a founder, you’ve probably been focused on writing your business plan , building out your financial forecasts to position yourself to get funding, and managing the day-to-day minutia of running a business. Founders of young organizations sometimes feel like they’re under a microscope. It’s not going to happen overnight.”

Founder 115

Founder United Kingdom Leadership Washington 115

View from Seed

SEPTEMBER 18, 2019

Depending on the composition of the founding team, you might or might not have near-term holes in certain functions at the exec level – e.g. you’ll most likely need to bring on a CTO/VP of Engineering shortly after the seed round if you don’t have a technical co-founder. The “product roadmap”.

Part-Time VPE 195

Part-Time VPE Seed Stage CTO Hire Forecast 195

The Next Web

NOVEMBER 6, 2013

Rick Boerebach is a co-founder of ZEEF.com , a curated link directory built by passionate experts. If your startup’s goal is to sell a product or service but you’re having a hard time with your revenue model, affiliate marketing might be the perfect match to give you that much-needed boost. What is affiliate marketing?

Affiliate 134

Affiliate Revenue Internet Marketing 134

This is going to be BIG.

JANUARY 18, 2024

Still, there are a lot of downsides to taking venture money—the push to grow at all costs, our desire to be all up in your business, literally, and sometimes, we’re kind of obnoxious. Some of these folks are founders and CEOs, but not at high-growth tech startups. It will save everyone a lot of cost and time.

.Net 88

.Net Cap Table Startup Technical Review 88

Startup Professionals Musings

OCTOBER 5, 2014

Things will cost more than you expect. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Steve Blank

SEPTEMBER 5, 2018

Jeff Katzenberg has a great track record – head of the studio at Paramount, chairman of Disney Studios, co-founder of DreamWorks and now chairman of NewTV. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits.

Lean 335

Lean Burn Rate Startup IPO 335

Startup Professionals Musings

OCTOBER 16, 2023

Yet every business requires revenue and volumes, as certainly as it requires a product to sell. Projecting financials is a natural extension of the homework every entrepreneur needs to do on customer opportunity size, product costs, pricing, competition and customer value. Doubling revenue each year is a good target.

Forecast 290

Forecast Burn Rate Widget Business Plan 290

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 26, 2019

Founders almost never have a real strategy. Founders explain failures with things like “our two main competitors did [thing] to us” or “customers didn’t understand [our point of view].” The 10,000th biggest company in the world is a very successful company, as is the two-person company where the founders each take home $300k/year.

Restful 202

Restful Founder Revenue Acquisition 202

Startup Professionals Musings

FEBRUARY 21, 2012

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Your startup will require more money than you expect, and the cost of going back to the well is very high. Pay people with equity or future revenue. Include buffer when you raise money. Great strategy.

Burn Rate 232

Burn Rate Startup Salary Equity 232

YoungUpstarts

JULY 31, 2019

by Anish Sebastian and Juan Pablo Segura, co-founders of Babyscripts. Founders need seed capital to get their operations up and running, and to begin generating revenue. They need to comply with laws, create back-end processes, and build prototypes — all of which cost money.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

Steve Blank

APRIL 23, 2018

The entrepreneur who founded and grew the largest startup in the world to $10 billion in revenue and got fired is someone you have probably never heard of. Each of these GM divisions focused on its own day-to-day operations with each division general manager responsible for the division’s profit and loss. Modern Corporation Marketing.

Michigan 268

Michigan Cofounder Stock Forecast 268

Steve Blank

APRIL 23, 2014

buy out an entire company for its revenue and profits. These include the product itself, the customer, the distribution channel, revenue model, how to get, keep and grow customers, resources and activities needed to build the business and costs.). Often they have brought in an operating executive as the new CEO.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Startup Professionals Musings

AUGUST 31, 2019

Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. In addition, huge amounts of executive time are required, as well as hits to key operational, accounting, and communication processes. Startup founders don’t fit in a public company. Going public is an expensive process.

IPO 210

IPO SEC Prospectus Startup 210

Startup Professionals Musings

JULY 12, 2023

But the insights I see from her book and elsewhere are equally applicable to startup founders of all ages, and businesses of all ages. Viral marketing campaigns to lure new customers will cost you big money. Examine every cost center in your business. Look for hidden sources of revenue. Focus on your core competency.

Viral 232

Viral Revenue Distribution Campaign 232

Startup Professionals Musings

JANUARY 28, 2011

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Your startup will require more money than you expect, and the cost of going back to the well is very high. Pay people with equity or future revenue. Include buffer when you raise money. Great strategy.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Berkonomics

NOVEMBER 18, 2021

You can be the one to develop a product or service, promote it, and support it when you are a small operation. These are predictable and usually arrive in the same recurring order, and often with every $3 million in additional annual gross profit from revenues as you grow. Don’t be alarmed by this next statement. What could go wrong?

Revenue 62

Revenue Distribution Reputation Operations 62

Up and Running

NOVEMBER 5, 2018

What will it cost to start that business? Many people underestimate startup costs and start their business in a haphazard, unplanned way. Estimating realistic startup costs is one of the key elements of your financial plan. What are startup costs? Second, money to be spent on operating expenses and buying inventory.

Cost 150

Cost Balance Sheet Startup Intellectual Property 150