article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

Startup 418
article thumbnail

Make The Most Of Your Next VC Pitch By Doing These 10 Things

YoungUpstarts

They want to see that you have some unique advantage that differentiates your company from others in your industry, and they’d prefer that you have some experience in that industry, which gives you legitimate insight into the problem you’re attempting to solve. You may be able to generate revenue, but VCs want exponential growth.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Effective Ways To Differentiate And Scale Your Business

Duct Tape Marketing

Effective Ways To Differentiate And Scale Your Business written by John Jantsch read more at Duct Tape Marketing. Key Takeaway: A major challenge many businesses face is trying to find ways to differentiate and scale. Debbie Howard (07:32): I think for us is just trying to differentiate and then scale.

article thumbnail

How to Improve Profit by an Average of 11.1%

Austin Startup

A 1992 study from the Harvard Business Review found that the right pricing changes can drive revenue and profit improvements faster than any other growth lever — faster than increasing the volume of sales or decreasing costs. At worst you will destroy hard earned revenue and/or profit. The importance of price. Let’s break this down.

article thumbnail

Lessons Learned: The lean startup

Startup Lessons Learned

This slinging of whatever against the wall to see what sticks does not a market make, is to me a sign of too much capital in the wrong hands, and it's already the most over invested area in recent years- in both human and financial capital- particularly relative to revenue. Otherwise it's a great idea.

Lean 168
article thumbnail

What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

A great recent example of this was a successful group of entrepreneurs who had created a company that will do $10-12 million in revenue at their system integration business (read: services business) in 2011 after having done $5 million or so in 2010 and $2-3 million in 2009. You own the IP you create. He is the majority owner.

article thumbnail

Spectacles and $SNAP’s $20B Valuation

Austin Startup

Revenue needs to grow 20x, and margins must expand dramatically. I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. Global smartphone revenue is about $420B.