Berkonomics

JULY 24, 2014

Most entrepreneurs, when starting to model their business operations using a spreadsheet, start with expected revenue by month. Project your revenues and costs as in the original exercise. Project your revenues and costs as in the original exercise. There is a rarely-used twist that makes lots of sense.

Forecast 79

Forecast Salary Revenue Finance 79

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

Software Review 91

Software Review Clawback Sales Salary 91

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

epaley.com

MAY 6, 2013

Once financed, everyone at the startup should have a reasonable salary, but the real compensation for achieving the improbable is the equity that is typically shared between all employees proportional to the expected contribution of each person. Using revenue metric.s Startups forecast based on what’s possible.

Salary 41

Salary Startup Equity Forecast 41

www.mint.com

MARCH 9, 2010

If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” These days revenue is the best source of capital. That’s cool.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Up and Running

MAY 1, 2014

Your business plan isn’t complete without a financial forecast. Business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. Three-year projections are typically adequate, but some investors will request a five-year forecast.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Up and Running

AUGUST 21, 2014

What a lot of companies or startups don’t realize is when you put up forecast together, it’s difficult if you’re a startup. The other thing that they’re going to ask you is average revenue per account or per user or per customer. It’s what’s going to make you most attractive to an investor.

Metrics 84

Metrics Startup Churn Rate Forecast 84

Austin Startup

SEPTEMBER 17, 2017

Further, you demonstrate on your spreadsheet that a venture return to early investors is plausible at a valuation that gives you enough equity to get the job done and to take care of you and your team at exit time. If the founders aren’t drawing market salaries, then true profitability may be overstated.

Valuation 48

Valuation Forecast Seed Money Business Model 48

Startup Lessons Learned

OCTOBER 30, 2008

Get 18 months or more of cash (runway) in the business against a conservative forecast. Not just about expenses, about increasing revenue. Offer equity instead of cash. Voluntary salary reduction program. Make sure for planned revenues you have "leading indicators" to know if you will hit it. Use Google Apps.

Lean 121

Lean San Francisco Continuous Deployment DC 121

BeyondVC

JANUARY 2, 2006

From a philosophical point of view, I view compensation as the combination of salary, bonus (if any), and equity. For cash starved startups, having management and employees believing in the opportunity and team and being motivated by equity is key to success. The next question you may have is what is the definition of market.

Management 60

Management Equity Forecast Salary 60

Both Sides of the Table

FEBRUARY 23, 2010

I’ve seen way too many startups spend all their energy getting channel deals done only to find out that they don’t produce ANY revenue. The price points are not as high as your beautiful Excel spreadsheet had forecasted when you raised your seed capital. Full Stop for you Brits.)

Channel 293

Channel Startup Sales Partner 293

Both Sides of the Table

FEBRUARY 14, 2016

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. In the case of startups the “buyer” is the VC looking to part cash for “purchasing” equity in your startup. Reversion to the Mean.

Valuation 150

Valuation Down Round Startup Later Stage 150

Up and Running

APRIL 29, 2014

If you have those goals in mind and you understand where you’re going with your business, you have so much more power to plan for them, both on the tax side as well as on the revenue and expense side for your business and cash flow management. But it’s one of the most highly-audited areas of the Internal Revenue.

.Net 85

.Net Capital Gains Distribution Puerto Rico 85

Up and Running

DECEMBER 9, 2014

What I did is I learned the art of a pro forma and the value of a pro forma which basically is a forecast. Two, revenue. If you don’t know what your cash flow forecast is, you don’t really understand your capital needs. You heard a little bit from others about that. What do you do? One, profit and loss statement.

Small Business 95

Small Business Finance Forecast Metrics 95