Startup Professionals Musings

DECEMBER 6, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Commit to a major customer.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Long-term stability requires revenue growth and profit.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Startup Professionals Musings

DECEMBER 1, 2017

Every business needs to develop a revenue model even before a product. The alternatives range from giving the product away for free (revenue from ads), to pricing based on costs, to charging what the market will bear (premium pricing). Revenue is a percentage of every transaction. Facebook spent $150 million getting started.

Revenue 166

Revenue Affiliate Advertising Retention 166

Startup Professionals Musings

AUGUST 31, 2014

The revenue model you select is basically the implementation of your business strategy, and the key to attaining your financial objectives. So what are some of the most common revenue models being used by startups today? business business model entrepreneur revenue model startup' The customer advantage is a lower entry cost.

Revenue 287

Revenue Startup Business Model Retention 287

Startup Professionals Musings

FEBRUARY 8, 2023

For the rest of us, here is my prioritized list of key strategies that I believe every business leader can benefit from as a starting point in making the current inflation economy less of a negative impact on their business, or maybe even a pleasantly surprising positive: Solicit follow-on revenue from existing customers.

Technical Review 239

Technical Review Revenue Social Media Cost 239

Startup Professionals Musings

JUNE 24, 2020

Typical valuations range from 3x-5x revenues. Investors are rushing to offer ridiculous valuations, even to pre-revenue startups, to keep from missing out. Valuations are back to 3x-5x revenues. Many investors and big companies are putting money into this space or adding it their product line today.

Artificial Inteligence 436

Artificial Inteligence Marketing Valuation Startup 436

Startup Professionals Musings

AUGUST 19, 2020

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. Think of these alternatives as paying interest on a loan, and manage them wisely. Be a miser with contract services and facilities.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

FEBRUARY 14, 2022

For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. Don’t attempt to scale it until you have a proven repeatable business model that predictably generates revenue.

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

Startup Professionals Musings

NOVEMBER 2, 2022

Even non-profits need revenue to cover their costs, and continue to provide services. Opportunity and revenue projections based on deep market and customer analysis are a smarter risk. Providing everything free, and growing users to the max for years, like Twitter and Facebook, is a high risk approach requiring deep pockets.

Forecast 304

Forecast Stock Options Technical Review Metrics 304

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Commit to a major customer.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

Startup Professionals Musings

MAY 22, 2020

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. Look for examples of similar companies and revenue multiples achieved from acquirers. When did this effort really start, including pivots? How much and when can I reasonably expect a payback?

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

Startup Professionals Musings

MARCH 12, 2012

One of the biggest red flags I see in many Internet-related business plans today is advertising as the initial revenue stream, or a key part of it. Until you get a million page-views per month, your revenue will be negligible, and advertisers won’t be interested in your site. Now back to the revenue realities. Face reality.

Revenue 266

Revenue PPC Advertising CPA 266

Startup Professionals Musings

FEBRUARY 18, 2023

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. Look for examples of similar companies and revenue multiples achieved from acquirers. When did this effort really start, including pivots? How much and when can I reasonably expect a payback?

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

OCTOBER 16, 2022

Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions. Member of the Advisory Board.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

JANUARY 5, 2019

Generate revenue around the clock. Focus on recurring revenues. With a stable base of subscribers, this can mean a continuing revenue stream from newsletters, support, or advice on demand. Provide website forums to help customers solve their own problems. Use the Internet to outsource staff.

Technical Review 243

Technical Review Software Review Internet Revenue 243

Startup Professionals Musings

APRIL 24, 2016

Every new business quickly realizes that revenue coming in every period on a committed basis is the Holy Grail to survival and growth. According to many experts , getting new customers is five to ten times harder than getting additional revenue from existing customers.

Revenue 120

Revenue Startup Cloud Curation 120

Startup Professionals Musings

FEBRUARY 2, 2013

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities. unless it relies wholly on donations.

Revenue 262

Revenue Startup Africa United States 262

Startup Professionals Musings

MAY 26, 2023

Even though many of these challenges may seem obvious to you, I still see them often overlooked by aggressive business leaders, resulting in a large percentage of expensive new initiatives that fall well short of growth and revenue expectations. Marty Zwilling First published on Inc.com on 05/11/2023

Product 354

Product Technical Review Artificial Inteligence Dividend 354

Startup Professionals Musings

APRIL 24, 2011

Your friends and family are really the only answer until you have a significant revenue stream. Use friends, family, and angels, if possible, to get a product, revenue, and customers first before the VC connection. Angels are also moving up-stage, leaving a bigger and bigger black hole for new startups.

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

Startup Professionals Musings

SEPTEMBER 16, 2023

Before you bring on partners, develop intellectual property, raise capital, or generate revenues, you need to establish an official business entity. Minimum viable products (MVPs) are recommended for validating the market, with iterative enhancement to quickly meet market feedback.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

Startup Professionals Musings

MARCH 25, 2023

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

FEBRUARY 8, 2020

Even non-profits need revenue to cover their costs, and continue to provide services. Opportunity and revenue projections based on deep market and customer analysis are a smarter risk. Providing everything free, and growing users to the max for years, like Twitter and Facebook, is a high risk approach requiring deep pockets.

Management 322

Management Entrepreneur Forecast Stock Options 322

Startup Professionals Musings

SEPTEMBER 29, 2018

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. Think of these alternatives as paying interest on a loan, and manage them wisely. Be a miser with contract services and facilities.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

AUGUST 13, 2023

Experiments on today’s revenue engine necessarily focus on short-term financial goals. The trick is not to sweep everything aside, but to balance relevant aspects of now while making room for what is new. Sponsor experiments and measure like new investments.

Framework 240

Framework Engineer Leadership Revenue 240

Startup Professionals Musings

JUNE 2, 2021

Short-term earnings per share may be low, even as revenues and cash burned are high. In many cases, growing the ecosystem is so important that your best competitive move may be to invest in facilitating “competition,” such as Tesla Motors giving away their battery patents to other auto providers, without royalties, to build the ecosystem.

Software Review 355

Software Review Algorithm Global IPO 355

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Commit to a major customer.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

MAY 23, 2022

One 11-year study of over 200 companies over a decade ago, detailed in the book “ Corporate Culture and Performance ,” found that those working on their culture improved revenue by 516%, and increased net income by 755%. Building an ethical business is more than just compliance and meeting legal requirements, and it has big paybacks.

Software Review 291

Software Review Offshore Entrepreneur Leadership 291

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Commit to a major customer.

Product Development 177

Product Development Cost Developer Product 177

Startup Professionals Musings

OCTOBER 26, 2022

Business agility is simply to ability and intent to make small changes, on a daily basis, to penetrate new markets, add new revenue streams, reduce costs, and prune out products that are no longer carrying their weight. Managing an agile business means managing change, not solidifying a status quo.

Agile 379

Agile Technical Review Leadership Social Media 379

Startup Professionals Musings

MAY 13, 2023

Even good social causes need to bring in revenue to continue their worthy efforts. All your friends may love your idea on how to find the nearest bar or gym, but how many people are willing and able to pay money for your solution? Ask domain experts to quantify value for you. Choose projects with financial resources within your reach.

Technical Review 267

Technical Review Due Diligence Intellectual Property Internet 267

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Commit to a major customer.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

DECEMBER 5, 2021

Some startups not only ignore this and don’t budget for it, but they actually plan on the free viral marketing to generate enough revenue from click-through advertising to fund operations and future growth. That’s a double death wish.

Viral 348

Viral Marketing SEM Campaign 348

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Commit to a major customer.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

Startup Professionals Musings

AUGUST 24, 2022

In addition, research shows that companies that fail to align their marketing and sales departments have less ROI, and lose 10% or more of their revenues per year. Here there is no substitute for independent analysis from experts outside the organizations involved. Buyer behavior is difficult to predict and quantify.

Acquisition 250

Acquisition Cost Customer Sales Cycle 250

Startup Professionals Musings

SEPTEMBER 22, 2022

Great marketing is required to generate revenue and grow every business, especially new businesses which have no brand recognition nor loyal customer base. Usually these are described as revenue growth drivers, as outlined in a new book, “ The Revenue Accelerator: The 21 Boosters to Launch Your Startup ,” by Dr. Allan Colman.

Marketing 333

Marketing Revenue Matching Viral 333

Startup Professionals Musings

NOVEMBER 23, 2020

Experiments on today’s revenue engine necessarily focus on short-term financial goals. The trick is not to sweep everything aside, but to balance relevant aspects of now while making room for what is new. Sponsor experiments and measure like new investments.

Framework 402

Framework Engineer Leadership Revenue 402