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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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10 Real World Hazards With Taking Your Startup Public

Startup Professionals Musings

Today the rate of startups going public (IPO – Initial Public Offering) is finally up from the dead zone of the last two decades, and is now double the rate back in 1999. Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. Going public is an expensive process.

IPO 245
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Why Employer-Sponsored Health Insurance Is A Thing Of The Past And What You Should Do About It

YoungUpstarts

Even if your company is large enough to justify it, with health insurance costs today exceeding profits for many companies, it’s rare that the CEO and CFO of a Fortune 500 company don’t spend many hours managing their health benefits program,” notes Lindquist. Losing group health insurance clients due to cost or participation requirements?

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Why Every Company Needs A DevOps Team Now

Feld Thoughts

Since 1999, my passion has been studying high performing IT organizations. Over the years, I’ve come to believe with moral certainty that everyone needs DevOps now, especially software startups where the successful execution of Development and IT Operations preordain success or failure. Our revenue pipeline stopped for two hours.”

Phoenix 175
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Why Buying A Small Business Now Is A Bad Idea

YoungUpstarts

Unless you own a strong, established business in an area that has survived the first shutdown and your business is considered somewhat essential, the volatility of operating a company with interruption in cash flow means the business may not make it. The possibility of more business interruption exists. Continuing supply-chain issues. .

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Marketing and Growth Lessons for Uncertain Times

ConversionXL

Yet in expansionary periods, successful leaders spent significantly less on [selling, general, and administrative costs] than did their former peers. A focus on cost cutting—every decision is viewed through a loss-minimization lens. As the authors found, “Firms that cut costs faster and deeper than rivals don’t necessarily flourish.

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Times Square Strategy Session – Web Startups and Customer Development

Steve Blank

In it, I got asked a question I often hear: “What if we have a web-based business that doesn’t have revenue or paying customers? And without revenue how do we know if we achieved product/market fit to exit Customer Validation?” They’re putting money into web services/business – most without early revenue. End of theory.&#