Berkonomics

OCTOBER 5, 2023

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. 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?”

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

This is going to be BIG.

JANUARY 18, 2024

Still, there are a lot of downsides to taking venture money—the push to grow at all costs, our desire to be all up in your business, literally, and sometimes, we’re kind of obnoxious. They might not understand how a pre-revenue startup could be worth anything, let alone be valued at $5mm. It will save everyone a lot of cost and time.

.Net 88

.Net Cap Table Startup Technical Review 88

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. ” If you’re not profitable you’re purely a cost center to them. Simplifying: Revenue -. Cost of Goods Sold (COGS) =.

Startup 418

Startup Revenue Technical Review Flash 418

Berkonomics

JANUARY 12, 2023

Some types of businesses generate more and more recurring revenues over time, often growing to a size where recurring revenues pay all of the overhead of the company – an enviable position. The surprising recurring revenue trap. Legacy system recurring revenues. The enterprise value of recurring revenue-based companies.

Revenue 118

Revenue Cloud IPO .Net 118

The Startup Magazine

JANUARY 17, 2021

EMPLOYEE NET PROMOTER SCORE . You may be familiar with the net promoter score (NPS). While measuring the sales revenue, it might take time to figure out those marketing parts that yield sales. The ratio of operating cash flow to the net capital gives insights into the financial status and anticipates profits. SALES KPIs.

.Net 92

.Net Metrics Retention Revenue 92

Feld Thoughts

JULY 9, 2019

We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis. Since we invest across a number of different themes, we’ve had to deal with very different revenue and gross margin profiles since the beginning, whether we realized it or not. We’ve been doing this for a long time at Foundry Group.

Revenue 179

Revenue Valuation .Net IPO 179

VC Cafe

FEBRUARY 21, 2023

Year over year conversion trends according to Hubspot ( source ) Unlike 2021, when money was cheap and plentiful, the mantra for startups is no longer blitzscaling and growth at all costs. Some studies suggest that the best consumer subscription companies are able to retain 65% of their revenue after one year.

Retention 109

Retention Conversion Churn Rate B2C 109

Startup Professionals Musings

MAY 15, 2019

You can review all the specifics of this approach in the classic book by Nathan Furr and Paul Ahlstrom, appropriately titled “ Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation ,” but I will net it out here. Great businesses begin with a customer problem that has a big and monetizable pain point.

Startup 245

Startup Angel Investor Technical Review Incubator 245

The Startup Magazine

JULY 21, 2021

Digital marketers promote the company’s product or service to their target audience in order to maximize revenue. With PPC, impressions cost nothing. Ideally, digital marketers can optimize PPC marketing campaigns so the conversions (sales) from the ad nets more revenue than the cost of the campaign.

Technical Review 146

Technical Review PPC SEM Marketing 146

ConversionXL

FEBRUARY 3, 2022

Don’t cast your net too far and wide. For each potential channel, look at: Customer acquisition cost How many customers you can reach Whether the channel reaches the right audience. Use qualitative customer surveys and gather Net Promoter Score feedback to understand user intent and friction. What are their desires? Activation.

Retention 113

Retention Marketing Acquisition Channel 113

Both Sides of the Table

NOVEMBER 3, 2009

In all of these new product and cost-focused new trends, a big problem has emerged that all of these movements have not addressed. Let’s take your revenue line. How will you go to market in a cost effective way to achieve similar margins as your competitors. The cost side of the equation is also important.

Business Plan 334

Business Plan AJAX Venture Capital Technical Review 334

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. Vendor costs are subject to change, customers are fickle, competitors come out of the woodwork and the economy can take a downturn.

Conversion Ratio 368

Conversion Ratio Startup Business Model eCommerce 368

Berkonomics

JANUARY 5, 2023

If you are experiencing 20% annual growth and 20% net profit before depreciation and tax, or any combination that adds to 40% (such as 10% profit and 30% growth), you are a prime target. That’s quite a goal to achieve. But there are obvious and not–so obvious ways to make it happen, even if over time. The second rule: The 20/20 rule.

Acquisition 62

Acquisition .Net Retention Sales 62

Startup Professionals Musings

MARCH 31, 2023

Hidalgo recommends a focus on engagement stage indicators including customers by channel, conversion ratio, and cost per revenue. You need to track what content is resonating with your prospective customers, through metrics including submit rate by content offer, elasticity, velocity, cost, and ultimately revenue by content program.

Demand 256

Demand Metrics NPV Net Present Value 256

Up and Running

NOVEMBER 3, 2021

Say you’re moving across the country, which can cost anywhere from $1500 to $6000 on average. On the other hand, if you receive a payment of $2000, that’s considered income or revenue, you’ll generate positive cash flow that can be reinvested in other areas. .

Balance Sheet 81

Balance Sheet Management .Net Metrics 81

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

JULY 3, 2020

Hidalgo recommends a focus on engagement stage indicators including customers by channel, conversion ratio, and cost per revenue. You need to track what content is resonating with your prospective customers, through metrics including submit rate by content offer, elasticity, velocity, cost, and ultimately revenue by content program.

NPV 436

NPV Net Present Value Conversion Ratio Marketing 436

The Startup Magazine

OCTOBER 27, 2019

Unfortunately, such a high number does not translate to an equal level of revenues. An even more surprising statistic is that over 60% of all business-related revenues are collected by large corporations, the likes of which include Apple, Facebook, Amazon, Google, and similar. Inventory Issues.

Technical Review 62

Technical Review Revenue Software Review Campaign 62

Startup Professionals Musings

DECEMBER 2, 2022

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. The most common failures are solutions looking for a problem, lack of a defined market, or an inadequate revenue model. Revenue model. Cost structure.

Business Model 256

Business Model Distribution Viral Green 256

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

The Startup Magazine

MAY 31, 2022

On the other hand, HR agencies offer cost-effective, standardized services, while consultants offer customized HR solutions (best for small companies). Payroll management entails several steps, including: Calculating allowances (such as rent and travel expenses) and salary components (variable and net pay). Cost-cutting.

United States 136

United States Salary UAE Hiring 136

Steve Blank

JUNE 27, 2017

Its employees and investors don’t depend on an existing revenue stream. Every Airbnb rental is a lost night of revenue for hotels that hate it. In the 20 th century companies worried about increasing their market share, profit margins, return on investment and return on net assets. None of the renters pay hotel or tourist tax.

Startup 275

Startup New York City Valuation Distribution 275

Berkonomics

FEBRUARY 11, 2021

Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month. Then they calculate cost of sales, and then project their expenses, to find the bottom-line profit or loss each projected month. Project your revenues and costs as in the original exercise.

.Net 62

.Net Forecast Salary Revenue 62

The Startup Magazine

JULY 21, 2021

Digital marketers promote the company’s product or service to their target audience in order to maximize revenue. With PPC, impressions cost nothing. Ideally, digital marketers can optimize PPC marketing campaigns so the conversions (sales) from the ad nets more revenue than the cost of the campaign.

Technical Review 78

Technical Review PPC SEM Marketing 78

Startup Professionals Musings

AUGUST 31, 2019

Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. As best, you should reserve this option for later stage VC discussions, once you have a well-proven business model, large market following, and substantial revenue. Going public is an expensive process.

IPO 210

IPO SEC Prospectus Startup 210

Up and Running

AUGUST 13, 2014

An Income Statement, also called a Profit and Loss Statement, is a fundamental tool for understanding how the revenue and expenses of a business stack up. Typically, an Income Statement is a list of revenue and expenses, with the companys net profit listed at the end. A line by line breakdown of an income statement.

.Net 100

.Net Balance Sheet Forecast Business Plan 100

Startup Professionals Musings

JANUARY 18, 2014

You can review all the specifics of this approach in a book by Nathan Furr and Paul Ahlstrom, appropriately titled “ Nail It then Scale It: The Entrepreneur''s Guide to Creating and Managing Breakthrough Innovation ,” but I will net it out here. Don’t forget a viable financial model of costs, margins, customer acquisition, and break-even.

Entrepreneur 283

Entrepreneur Startup Angel Investor Technical Review 283

Hunter Walker

MARCH 2, 2018

.” It’s shorthand for the concept than businesses which are primarily bits (not atoms) have some very attractive characteristics: fixed development costs, economies of scale in deployment & servicing, and “winner take most” markets with pricing power.

Software Review 92

Software Review Software Technical Review .Net 92

Startup Professionals Musings

MAY 12, 2017

You can review all the specifics of this approach in the classic book by Nathan Furr and Paul Ahlstrom, appropriately titled “ Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation ,” but I will net it out here. Great businesses begin with a customer problem that has a big and monetizable pain point.

Startup 161

Startup Angel Investor Technical Review Incubator 161

ReadWriteStart

JULY 7, 2021

The entrepreneurs can reduce their operational costs significantly – by utilizing advanced technologies like autonomous vehicles, drones, and robots for courier delivery. Analyze the financial details such as the cost per conversion (CPC) and Return on Investment (ROI). . Further, it adds a lot of certainty and peace for them.

Technical Review 163

Technical Review Artificial Inteligence Demand Social Media 163

YoungUpstarts

MARCH 29, 2018

To keep track of all your expenditure and the effect this is having on your profits, you need to have a plan that details every facet of your business and the costs each incurs. You should have included all your overheads and running costs in your original business plan, so revisit it and see how your predictions have turned out.

Technical Review 100

Technical Review .Net Warrant Cost 100

Up and Running

OCTOBER 7, 2019

A data-driven approach can help you make accurate and timely business decisions to meet market demands and improve cost-efficiency. Revenue growth rate: measures the month-over-month percentage increase in revenue and is the most common and important metric for startups. “What gets measured gets done.” . Marketing KPIs.

Founder 71

Founder Retention Metrics Technical Review 71

Startup Professionals Musings

DECEMBER 20, 2012

You can review all the specifics of this approach in a recent book by Nathan Furr and Paul Ahlstrom, appropriately titled “ Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation ,” but I will net it out here. Great businesses begin with a customer problem that has a big and monetizable pain point.

Startup 296

Startup Angel Investor Technical Review Incubator 296

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

ConversionXL

JUNE 2, 2022

Where lead generation casts a wide net, ABM uses a spear to target and catch the best fish. It’s proven to drive more revenue , improve customer experience , and power growth. To return to our earlier analogy, it’s using a net to catch large schools of fish. Does the client offer more than revenue? Company perception.

Lead Generation 94

Lead Generation Marketing Sales Cycle Campaign 94

ConversionXL

SEPTEMBER 1, 2020

Inside an organization there are only cost centers. Meaning: C = Customers (traffic x conversion rate) CLV = Customer revenue – (CAC + cost of serving that customer) CAC = Customer Acquisition Cost G = Growth. Net Promoter Score (NPS). How does “Customer Value Optimization” change your approach? RFM distribution.

Customer 132

Customer SMS Retention Acquisition 132

Up and Running

FEBRUARY 20, 2015

If you’re running a subscription business , you’ll want to track churn rate, monthly recurring revenue, lifetime value, and so on. However, there are a number of metrics that every business owner should know, including cash flow, accounts payable, accounts receivable, direct costs, operating margin, net profit, and cash burn rate.

Metrics 60

Metrics Burn Rate .Net Churn Rate 60