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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000.

Burn Rate 383
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Pop-ups — Is Annoying Your Customers Worth a Few Newsletter Sign-ups?

Up and Running

By 1997, the pop-up plague had spread to sites across the net, including Geocities, AOL, and The New York Times. Adware (software built primarily to advertise to users) like Gator began to appear. Let’s say that you have written a new e-book and want to encourage your customers to buy it.

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Sustaining Innovation vs. Disruptive Innovation

YoungUpstarts

A sustaining innovation targets demanding, high-end customers with better performance than what was previously available. Because this strategy entails making a better product that they can sell for higher profit margins to their best customers, the established competitors have powerful motivations to fight sustaining battles.

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Sustaining Innovation vs. Disruptive Innovation

The Startup Magazine

Scholar and innovation expert Clayton Christensen explains it this way: A sustaining innovation targets demanding, high-end customers with better performance than what was previously available. An example of sustaining innovation is Pfizer, the world’s biggest pharmaceutical company by revenues. And they have the resources to win.

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5 Most Successful Products Ever and What Small Businesses Can Learn From Them

crowdSPRING Blog

A successful product quickly acquires new users/customers and delivers consistent value. It’s not surprising that companies with successful products grow their customer base, increase their revenues, and outperform competitors. So, what better way to learn than to study the products that have cracked the success code?

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. Ah, but today’s Internet companies have real revenue! customers who paid for services often get burned. That asset class need not represent the broader market.

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It’s Morning in Venture Capital

Both Sides of the Table

Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. If you want to understand the details of why this is, I covered it in detail in this post, Understanding Changes in the Software Industry.