Berkonomics

OCTOBER 5, 2023

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. 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?” first appeared on BERKONOMICS.

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Startup Professionals Musings

OCTOBER 5, 2014

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

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

Startup Professionals Musings

FEBRUARY 21, 2012

Pay people with equity or future revenue. When I was interviewed for my first startup CEO job, I was expecting a $150,000 salary, but instead was offered an opportunity to contribute $50,000 to the business, and work for equity only. Another one to avoid cash burn for software development is a contract for percent of future revenue.

Burn Rate 232

Burn Rate Startup Salary Equity 232

YoungUpstarts

JUNE 16, 2020

This method branches off into two schools of thought: Past Earning Capitalization – this suggests that the expected revenue in the future can be predicted by a record of the company’s past earnings, once undue revenue or expenses are accounted for and multiplies the projected earnings by a capitalization factor.

Valuation 162

Valuation CPA Software Review Revenue 162

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

Startup Professionals Musings

JANUARY 28, 2011

Pay people with equity or future revenue. When I was interviewed for my first startup CEO job, I was expecting a $150,000 salary, but instead was offered an opportunity to contribute $50,000 to the business, and work for equity only. Another one to avoid cash burn for software development is a contract for percent of future revenue.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

JUNE 23, 2023

The failure rate is just too high, and startups typically don’t have the assets or revenue stream to back up the loan. In my experience, some startup founders do overcome these odds, but you need to be realistic and do your homework. Demonstrate an ability to repay from revenues, not collateral.

Silicon Valley 292

Silicon Valley CPA Small Business Administration Startup 292

Startup Professionals Musings

SEPTEMBER 14, 2016

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 120

Burn Rate Hockey Stick Startup Salary 120

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. 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

Startup Revenue Technical Review Flash 418

Startup Professionals Musings

SEPTEMBER 27, 2020

The failure rate is just too high, and startups typically don’t have the assets or revenue stream to back up the loan. In my experience, some startup founders do overcome these odds, but you need to be realistic and do your homework. Demonstrate an ability to repay from revenues, not collateral.

Silicon Valley 431

Silicon Valley CPA Small Business Administration SBA 431

YoungUpstarts

OCTOBER 13, 2020

by Manni Sidhu, Co-founder and CEO of Coleegs , and William Gilchrist , Founder and CEO of Konsyg. A new challenge has bloomed for founders and managers in the Covid-19 era –how do they set key performance indicators (KPIs) for the years ahead? How much further will our revenues drop? Founders should focus on stability.

Management 194

Management Founder Asia Cofounder 194

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 4, 2017

Idealistic founders believe they will break the mold when they scale, and not turn into a “typical big company.” Small companies operate this way by necessity, and it works! Or it’s fatal because that was a co-founder. If Google launches a new product that generates $10,000,000/year in revenue, is that good?

Government 223

Government Startup Cofounder Technical Support 223

Steve Blank

NOVEMBER 1, 2017

So is John Rice, the head of Global Operations along with CFO Jeffrey Bornstein. Increase operating margins to 18% (by cutting expenses). At GE the biggest problem in 2017 was major revenue misses in their Power business.) Often the short-term cuts directly affect employee salaries, jobs, and long-term investment in R&D.

Institutional Investors 241

Institutional Investors Dividend Stock Technical Review 241

Austin Startup

MAY 19, 2018

As Bryan stated below, there are no shortage of “How to pitch” or “How to behave” articles by VCs but really very little advice for VCs by founders. Anyone notice there's a ton of VCs giving founder advice, and almost no founder advice for VCs? Lines Not Dots Raising money from a fund is a process, most founders get that.

Founder 75

Founder Early Stage Software Review Deal Flow 75

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 26, 2013

No salaries followed by low salaries. The scrounging and scrabbling and begging and fighting the a s for those morsels of revenue, those crumbs of validation. ” Almost all startup founders experience a deep and prolonged sadness after selling their company , even when the sale is an outrageous success. We did it.

Software Review 295

Software Review Startup Cofounder Search 295

Startup Professionals Musings

FEBRUARY 5, 2010

Pay people with equity or future revenue. When I was interviewed for my first startup CEO job, I was expecting a $150,000 salary, but instead was offered an opportunity to contribute $50,000 to the business, and work for equity only. Another one to avoid cash burn for software development is a contract for percent of future revenue.

Burn Rate 120

Burn Rate Startup Salary Equity 120

David Teten

NOVEMBER 23, 2020

In its first full year of operation, VCAP attracted 159 applicants. Starship was launched by the co-founders of Skype. Paul Graham, the co-founder of Y Combinator, wrote in a thoughtful essay : “The defining quality of an ideologue, whether on the left or the right, is to acquire one’s opinions in bulk. Why is that?

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60

Startup Professionals Musings

MARCH 22, 2023

Jeff Bezos now manages Amazon, which encompasses over 40 subsidiaries and operates worldwide. Rather than a focus on salary and perks, your focus is on customers, revenue, and operations. Others, including Jeff Bezos, spent time in a big company or two before breaking away to form their own.

Metrics 279

Metrics Startup Agile Salary 279

Hearpreneur

AUGUST 11, 2021

Every waking day, we are having tremendous changes in regulations and technology which greatly affects the way businesses operate. Some entrepreneurs will say the future is definitely bright but to others, some of these changes are meant to work against their expansion and business operations. Photo Credit: Jennifer Carrasco.

Entrepreneur 126

Entrepreneur Technical Review Social Media Bootstrapping 126

Startup Professionals Musings

JANUARY 5, 2022

Like Paul Graham , founder of Y-Combinator, said a long time ago, I see startups succeed or fail every day based primarily on the qualities of the founders. The economy has some effect, but as a predictor of success it’s a rounding error compared to the founders. As a founder, you're buying stock with work.

Startup 258

Startup Cofounder Salary Advertising 258

A Smart Bear: Startups and Marketing for Geeks

DECEMBER 21, 2009

Okay okay, "Planning == Bad," but the supposed benefits of planning are still important: designing for profitability, understanding your customers and competitors, focusing your attention, deciding what's worth doing next, changing directions, and ensuring the founders agree on important issues. Which of your business operations do you hate?

Startup 315

Startup Revenue Cofounder Sales 315

Steve Blank

MARCH 17, 2020

Here are a few thoughts about operating in uncertainty in a pandemic. And how much are variable expenses (salaries, consultants, commission, travel, AWS/Azure charges, supplies, etc.?). Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. And what’s in my lifeboat?”.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Duct Tape Marketing

JANUARY 9, 2024

12:43] Where do you fall on the people operations approach of publishing salaries ? [14:58] It's a hard system, but I did find an industry, and I want to say it's a trillion dollars in revenue. The revenue of a company is usually the perception of the owner's income. Fuel your growth, boost revenue and save precious time.

Salary 54

Salary Campaign Revenue Community 54

Berkonomics

AUGUST 10, 2017

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

The Startup Magazine

JUNE 1, 2023

By Daniel Sokolovksy, Co-Founder and CEO, WARP and Troy Lester, Co-Founder and CRO, WARP The dissolution of Silicon Valley Bank (SVB) was more than just a bank collapse, it was a reality check for both startups and the VCs that fund them. We’re hitting record revenue months, weeks, and margins. That includes us.

Early Stage 108

Early Stage Los Angeles Silicon Valley Cofounder 108

Startup Professionals Musings

DECEMBER 1, 2018

The failure rate is just too high, and startups typically don’t have the assets or revenue stream to back up the loan. In my experience, some startup founders do overcome these odds, but you need to be realistic and do your homework. Demonstrate an ability to repay from revenues, not collateral.

Silicon Valley 210

Silicon Valley CPA Small Business Administration SBA 210

Duct Tape Marketing

APRIL 18, 2024

With her expertise, she’s boosted hundreds of agencies to millions in revenue, attracting premium clients willing to pay 50-600% fees. Key Takeaways Mandi Ellefson, founder of Hands-off CEO, shares her journey from overwhelming debt to multimillionaire status by transforming consulting agencies into self-sustaining enterprises.

Framework 64

Framework Sales Cycle Sales Hiring 64

Hearpreneur

APRIL 15, 2020

And if I want to increase my revenue year after year, that’s on me, too. Whether it’s a customer concern or something internal with operations, they are always issues that need to be addressed. 16- Freedom to operate in my genius zone. 18- Ability to adapt with the times and keep revenue coming in.

Entrepreneur 135

Entrepreneur Community Philippines Revenue 135

Board Effect

OCTOBER 25, 2022

It means they must use their funds to pay reasonable salaries and expenses and support the organization’s activities. Basic salaries aren’t considered personal benefits because they’re necessary for the operation of the nonprofit. Being a founder or board director of a nonprofit organization brings many crucial responsibilities.

Montana 98

Montana Salary Government Retention 98

Duct Tape Marketing

APRIL 7, 2022

Marcel is the CEO & Co-Founder of Parakeeto, a company dedicated to helping agencies measure and improve their profitability by streamlining their operations and reporting systems. In this episode of the Duct Tape Marketing Podcast , I interview Marcel Petitpas. This is John Jantsch and my guest today is Marcel Petitpas.

Cofounder 77

Cofounder Hosting Networking Software Review 77

Startup Lessons Learned

AUGUST 26, 2020

In other words, they've more than proved their plan can work--so much so that Bitwise now operates in two more cities and plans to keep growing. Jake Soberal and Irma Olguin are the founders of a company called Bitwise. They are now operating in nine States. Here's my conversation with the founders of Bitwise.

Fresno 60

Fresno Community Technology California 60

Startup Professionals Musings

MARCH 30, 2019

Like Paul Graham , founder of Y-Combinator, said a long time ago, I see startups succeed or fail every day based primarily on the qualities of the founders. The economy has some effect, but as a predictor of success it’s a rounding error compared to the founders. As a founder, you're buying stock with work.

Cofounder 200

Cofounder Washington Salary Advertising 200

View from Seed

NOVEMBER 18, 2014

Of the NextView-backed founders have have tried to raise this round, over 70% have done so (compared to a mean success rate in the industry of around 27%, according to some sources ). Higher founder salaries, which some investors view as a sign of being less hungry or aggressive, did not affect how quickly a startup raised its Series A.

Syndicate 333

Syndicate Syndication Seed Stage Startup 333

Startup Professionals Musings

MAY 11, 2013

The failure rate is just too high, and startups typically don’t have the assets or revenue stream to back up the loan. In my experience, some startup founders do overcome these odds, but you need to be realistic and do your homework. Demonstrate an ability to repay from revenues, not collateral.

Entrepreneur 252

Entrepreneur Angel Investor Silicon Valley CPA 252

Both Sides of the Table

JULY 13, 2013

By the way, the salary, which was a good salary, was $27,000 entry salary, and engineers were paid $31,000 to $35,000. [00:10:30] You’ve got entrepreneurs and founders who are really – a lot of them are in the very early stage of their startup. Technical founder. 00:10:30] DEREK: So that was significant.

Cofounder 337

Cofounder Technical Cofounder San Diego Startup 337

Board Effect

SEPTEMBER 20, 2019

Even though nonprofit organizations don’t operate for a profit, their board directors have all the same responsibilities and liabilities as major corporations. Nonprofits that have revenues in excess of $25,000 per year must file an annual report on Form 990 with the IRS. Individual states may have their own requirements and forms.

Software Review 45

Software Review Government Distribution Sales 45