Startup Professionals Musings

SEPTEMBER 17, 2021

Then every startup has to learn to pivot, because their first understanding of the real problem is usually not quite right. With the best solutions, the customer gets value which exceeds your revenue. That mentality has to be part of the culture of every startup team member from the start. No pain usually means no sales.

Sales 348

Sales Startup Bootstrapping Technical Review 348

Startup Professionals Musings

MARCH 6, 2021

Many startups fail before reaching that magic “cash-flow positive” position they have been striving for, despite seemingly reasonable financial projections. Many startups see initial revenue from customers, and love the fast growth, but fail to anticipate the cost of early vendor payments, monthly overhead costs, and later taxes.

Technical Review 379

Technical Review Finance Startup Salary 379

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. Marty Zwilling.

Viral 348

Viral Marketing SEM Campaign 348

Startup Professionals Musings

JUNE 21, 2020

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.

Revenue 434

Revenue Valuation Viral Retention 434

Startup Professionals Musings

JANUARY 18, 2020

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Yet credible reports on current trends tell us just the opposite.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

MAY 14, 2023

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

APRIL 4, 2022

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. Join a startup incubator. Use crowd funding. Get a loan or line-of-credit.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Startup Professionals Musings

JANUARY 16, 2022

A question that I still hear debated often is whether a new online platform startup growth strategy should focus on user count or profits. Most startups and investors I know don’t have unlimited funds, so the first question they should ask and do ask today, is “When is your company going to be profitable (self-sustaining)?”

Revenue 297

Revenue Widget Angel Investor Early Stage 297

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

JULY 1, 2020

Based on my own experiences in startups, and many years of advising new business owners, I’m convinced that there are a few common frustrations that we all need to anticipate and prepare for, rather than let them be a surprise and a painful dent in your enthusiasm and personal satisfaction from living your dream.

Due Diligence 306

Due Diligence Entrepreneur Startup Acquisition 306

Startup Professionals Musings

MAY 15, 2019

I found their five phases of the process to be compelling, based on my own years of experience mentoring startups: Nail the pain. For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. It’s time for a new startup model. Marty Zwilling.

Startup 245

Startup Angel Investor Technical Review Incubator 245

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. Join a startup incubator. Use crowd funding to build reserves.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

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. Join a startup incubator. Use crowd funding. Get a loan or line-of-credit.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

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. Join a startup incubator. Use crowd funding to build reserves.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

OCTOBER 16, 2022

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Yet credible reports on current trends tell us just the opposite.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

NOVEMBER 2, 2022

As a long-time mentor to entrepreneurs, here is my collection of smart risks that investors and I look for in new startups: Focus on a tough customer problem rather than a fun technology. Even non-profits need revenue to cover their costs, and continue to provide services. Find a strategic partner to accelerate growth.

Forecast 304

Forecast Stock Options Technical Review Metrics 304

Startup Professionals Musings

AUGUST 31, 2019

In the old days, every entrepreneur dreamed of easily taking their startup public, and making it big. Today the rate of startups going public (IPO – Initial Public Offering) is up from the dead zone, but is still half the rate back before 2000. Startups going public are laid open to competitors and critics.

IPO 210

IPO SEC Prospectus Startup 210

Startup Professionals Musings

SEPTEMBER 16, 2023

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Excellent detailed resources are everywhere, including a classic book, “ The Startup Checklist ,” by serial entrepreneur and founder of the New York Angels, David S. Incorporating a business entity early through online services.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

Startup Professionals Musings

FEBRUARY 14, 2022

I found their five phases of the process to be compelling, based on my own years of experience mentoring startups: Nail the pain. For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. It’s time for a new startup model. Marty Zwilling.

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

Startup Professionals Musings

FEBRUARY 21, 2012

Cash is the fuel of every startup. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. Here are some recommendations on how to keep the rate low, and help your startup to prosper at the same time: Measure it and manage it. Which would you bet on?

Burn Rate 232

Burn Rate Startup Salary Equity 232

Startup Professionals Musings

AUGUST 27, 2014

As a long-time mentor to entrepreneurs, here is my collection of smart risks that investors and I look for in new startups: Focus on a tough customer problem rather than a fun technology. Even non-profits need revenue to cover their costs, and continue to provide services. business calculated risks entrepreneur smart risks startup'

Startup 283

Startup Forecast Stock Options Technical Review 283

Startup Professionals Musings

SEPTEMBER 25, 2023

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

Startup Professionals Musings

AUGUST 31, 2014

One of the toughest decisions for a startup is how to price their product or service. 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? Freemium model.

Revenue 287

Revenue Startup Business Model Retention 287

Startup Professionals Musings

JANUARY 18, 2014

I found their five phases of the process to be compelling, based on my own years of experience mentoring startups: Nail the pain. For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. It’s time for a new startup model. Marty Zwilling.

Entrepreneur 283

Entrepreneur Startup Angel Investor Technical Review 283

Startup Professionals Musings

MAY 13, 2023

In my experience, consummate entrepreneurs tend come up with more startup ideas than they can ever implement, and some of the ideas may not even make business sense. Passion, optimism, and determination are necessary but not sufficient to assure a successful startup. Most startup projects require special skills and a motivated team.

Technical Review 267

Technical Review Due Diligence Intellectual Property Internet 267

Startup Professionals Musings

AUGUST 31, 2012

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. Only real results count. Attract a well-rounded team.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

JANUARY 28, 2011

Cash is the fuel of every startup. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. Here are some principles on how to do that, and help your startup to prosper and live another day: Measure it and manage it. Pay people with equity or future revenue.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Startup Professionals Musings

MAY 12, 2017

I found their five phases of the process to be compelling, based on my own years of experience mentoring startups: Nail the pain. For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. It’s time for a new startup model. Marty Zwilling.

Startup 161

Startup Angel Investor Technical Review Incubator 161

Startup Professionals Musings

OCTOBER 8, 2022

Another alternative is to build one yourself, starting with a few formulas to extrapolate early revenues and expenses into the five-year projections normally requested by banks and investors. For maximum value with the least effort, focus on only the “what ifs” that are the highest priority in your mind for your own startup.

Conversion Ratio 368

Conversion Ratio Startup Business Model eCommerce 368

Startup Professionals Musings

JULY 5, 2023

It’s helpful to think of startups as proceeding through several stages, which I have defined a long time ago from a funding perspective. Their real value is your access to senior advisors with experience, and other startups in the same stage. This normally means more than 30 employees, and more than $1 million in revenue.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Startup Professionals Musings

DECEMBER 20, 2012

I found their five phases of the process to be compelling, based on my own years of experience mentoring startups: Nail the pain. For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. It’s time for a new startup model. Marty Zwilling.

Startup 296

Startup Angel Investor Technical Review Incubator 296

Startup Professionals Musings

JUNE 17, 2011

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. Only real results count. Attract a well-rounded team.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

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

AUGUST 13, 2023

Experiments on today’s revenue engine necessarily focus on short-term financial goals. On the other end of the spectrum, technology startups also really need this mentality, since the rate of change there is rapid, and competition is so intense. Sponsor experiments and measure like new investments.

Framework 240

Framework Engineer Leadership Revenue 240

Startup Professionals Musings

JANUARY 7, 2013

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. Angels are also moving up-stage, leaving a bigger and bigger black hole for new startups. Identify the right people in the right venture firms.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252