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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins).

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. Typically promissory note or non-voting common stock, with covenants.

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Legal Issues Behind Running A Small Business

YoungUpstarts

A business operation entails many transactions and agreements that should be recorded in written form. In a business operation, you deal with a lot of leases, whether involving your location or equipment. You would need sound legal advice from an attorney to ensure that you avoid nasty covenants in the lease.

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Venture Debt 101

Up and Running

This sometimes even includes your IP assets, though this is negotiable and should be part of your decision on the lender you choose to work with. Covenants: borrowers face fewer operational restrictions or covenants with venture debt.

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One More Time: No NDAs

dashes.com

However, there is the concept of "mutual" NDA, which should give your IP equal protection if you share any of yours. The same goes for "non-competes" or non- solicitation covenants. The trick worked and the hyper-sophisticated AC system hummed into operation, but he was still challenged. zuccaro.joe. | May 8, 2010 7:55 AM.

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