Lessons From The Internet Bubble: Growth vs. Profitability

Feld Thoughts

Between the spring of 2000 and the end of 2001, I had the worst, most stressful, and most painful business period of my life. There’s a special bonus in Mark’s post, which is in the section titled Revenue is Not Revenue is Not Revenue. If you’re shaking your head and thinking, “duh” I promise you that even some of the most sophisticated people I know get off track on this issue of “gross revenue” versus “net revenue.”.

Research-Backed Strategies to Boost Your Gym’s Revenue

Up and Running

To help you out, we’ve hacked our way through the forest of general (and generic) ideas to find you only those strategies that have been proven to boost revenue. Diversify your revenue streams. This isn’t a revenue-driving strategy per se, but it is a strong recommendation.

Trending Sources

The Other Amazon Deal this week. Drupal founder attracts over $100 Million in 3 months.

Scalable Startup

Drupal was launched in 2001, and Acquia started in 2007. the original products can’t generate revenue, so when these OS projects occassionally blow up into phenomenons like Drupal and WordPress have over the past few years, it’s gratifying but also quite frustrating to watch others derive so much value from your baby while you toil away to lead its growth with no financial return.

Why Tim Cook is Steve Ballmer and Why He Still Has His Job at Apple

Steve Blank

If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. Between 2001 to 2008, Jobs reinvented the company three times. On day one there are no customers to lose, no revenue and profits to decline.

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Why Tim Cook is Steve Ballmer and Why He Still Has His Job at Apple

Steve Blank

If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. Between 2001 to 2008, Jobs reinvented the company three times. On day one there are no customers to lose, no revenue and profits to decline.

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How to Scale a Successful Software Business | Stephen Allott | Business of Software Europe

Business of Software Blog

Revenue in 1995 was c £1 million. In subsequent years revenue tripled, doubled, tripled, doubled, doubled and doubled to £142 million in 2001. Scaling Successful Software Companies. Stephen Allott led Micromuse, a London Headquartered company that floated on NASDAQ. That sort of growth is hard. In this talk, Stephen shares his experiences and identifies the five critical things, aside from ambition, that you need to get right to scale a successful software business.

Scaling is Hard, Case Study: Akamai

Seeing Both Sides

With over $1 billion in revenue, 2000 employees and a market capitalization of over $6 billion, Akamai has become a role model for scalable start-ups. billion in revenue, over $1 billion in gross profit and $500 million in EBITDA. Revenue.

Episode 47: Growing A Colossal Business with Donna Leyens

Mike Michalowicz

She started her first business, a handmade jewelry company, in 2001, where she learned that an MBA doesn’t even begin to prepare you for life as an entrepreneur. – 80% of your revenue or profit comes from 20% of your clients. Also Available On. Show Summary.

New Rules for the New Internet Bubble

Steve Blank

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. With Netscape’s IPO , there was suddenly a public market for companies with limited revenue and no profit. Carpe Diem.

How Much You Can Save With Document Management Software

YoungUpstarts

This saves time and frees up your employees to do other revenue generating projects. There is also a labor cost associated with these tasks that can be saved and allocated to revenue generating projects. By Benoy Tamang, CEO of eFileCabinet.

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Tonight We're Going To Party Like It's 1999

Launching Tech Ventures

The table below compares the market value at the end of 2001 —the trough of the valuation cycle that began in the mid-1990s—to total capital raised since inception (private and public) for all 2,121 U.S-based Enterprise values were estimated as of December 31, 2001.

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Episode 50: Video Content and Profitability with Seth David

Mike Michalowicz

An accounting firm based in Santa Monica, CA, specializing in bankruptcy, from 2001 to 2003. Previously, from 1999 to 2001, Seth was a Senior Revenue Accountant for the Veterinary Centers Of America. Also Available On. Show Summary.

Entrepreneurs are Everywhere Show No. 35: Jessica Mah and Peggy Burke

Steve Blank

We were depending on investor funding, but with $60,000 in revenue no one would fund it. . Especially difficult were the days after the Internet bubble burst: 2001 was a staggering blow to technology.

The Trap of Relative Value

Feld Thoughts

He had just read my post on being uncomfortable with the phase of the current cycle and told me an anecdote from the great Internet bubble of 2001 that I hadn’t heard. And, is multiple of revenue really the correct long term metric? Yesterday, at The Calloway Way event at MIT , I ran into Joe Caruso. I’ve known Joe for a while – we met through Techstars Boston, where he’s been a great mentor and very active angel investor.

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Public Service Announcement For Entrepreneurs: Ignore the Dow

Feld Thoughts

In 1999, 2000, and 2001 I had a my.yahoo.com page up with a bunch of stocks, including a number of companies I was an investor in, as my home page. I’d hit refresh 5,321 times a day, generating plenty of CPM-based revenue for Yahoo. Today is Finance Friday and post #2 has been drafted by the Finance Friday team from University of Chicago Booth and is waiting for my edits.

Valuations 101: Scorecard Valuation Methodology

Gust

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. The first step in using the Scorecard Method is to determine the average pre-money valuation of pre-revenue companies in the region and business sector of the target company. million for pre-revenue companies.

Three Counterintuitive Ways To Build A Business That Lasts

YoungUpstarts

Despite being a bootstrapped company with little revenue, we over-invested in a central New York City office at a rate of 15% rent to revenue. by Gareth Wilson, Head of Marketing at Fog Creek Software.

Unshackle the Middle Class

Marc Andreessen

To put the job numbers in context, the number of total US employees in 2001 was just shy of 138 million people; 10 years later, that number was only 139 million. Arguably the most significant among the changes was the 2001 move to decimalization. The 2003 Global Research Settlement (which prohibited investment banking revenue from subsidizing investment research) proved the final death knell. This is a guest post by Scott Kupor, managing partner, Andreessen Horowitz.

Tonight We're Going to Party Like It's 1999

Platforms and Networks

The table below compares the market value at the end of 2001 —the trough of the valuation cycle that began in the mid-1990s—to total capital raised since inception (private and public) for all 2,121 U.S-based Enterprise values were estimated as of December 31, 2001.

Stop Being the Go-To Guy

Inc Startups

EMazzanti was founded in 2001 and provides technology products and services to business clients. Many of its customers are on monthly contracts, which gives eMazzanti a recurring revenue stream. In 2001, eMazzanti ranked 3,041 on the Inc.

How Writing a Book Can Help Market Your Business

Blogtrepreneur | Entrepreneur Blog

Since writing these books, Covey has raised his visibility; increased his credibility; positioned himself as a peer to established authorities; taught; established complementary streams of revenue; and built new social and professional networks.

A Bubble for Seed Stage Valuation

Angel Investing News

And, as you might expect, when the company grows and meets important milestones (granted patent, first revenues, etc.), Demand was extremely high during the Internet bubble (ending in 2001) and very low in 2007-09. When entrepreneurs raise equity capital for startup companies, the investors’ percentage of ownership is determined by the negotiated valuation for the company at the time of investment. For example, if the negotiated pre-money valuation is $1.5

Everpix, Snapchat, and the Startup Lie

Inc Startups

Contrast that with Snapchat--the 20-plus employee, zero-revenue, temporary selfie app that secured a huge $60M round of funding in June, got swanky new office digs in Venice, and supposedly is in line to get even more money ! Revenue low (paid users x price per year): $333,200.00

The Best Free Email Marketing Tool for Startups and Small Businesses

Up and Running

A durable, trendsetting presence in the industry since 2001, the Atlanta-based firm sends over a billion emails per day and is the go-to choice for over 14 million organizations and individuals around the world.

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GBP | Dirk Paessler | How to Grow & Stay Agile. Part 1: Top 6 Business Decisions

Business of Software Blog

In 2001 the dot-com bubble had just burst. Since then, the revenues from one month have always paid for our wages and the development of the products that we would sell in the following month—and we soon made profits, too. How to Grow and Stay Agile – Top 6 Business Decisions.

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Digital Advertising Is Broken: Three Alternatives For Businesses Looking To Monetize Their Website

YoungUpstarts

Websites, they claim, need advertising revenue to survive. More than being vehicles of marketing and revenue, this means that resource-hogging advertisement networks are often vehicles for malware. Max Emelianov started HostForWeb in 2001. by Max Emelianov, CEO of HostForWeb.

Why Money Isn't Always Your Biggest Problem

Inc Startups

Your chair budget exceeds annual revenue. When it went bankrupt in 2001, the chairs were auctioned. If you think more cash will solve all of your startup''s problems, you''re in for a disappointment.

Can You Really Measure Culture? The Numbers Side Of “The Soft Edge”.

YoungUpstarts

Look for companies that make the Best Places to Work lists and are industry leaders in revenue per employee. He has been a regular panelist on television’s Forbes on FOX since the show’s inception in 2001.

The Case for E-commerce Acceleration (aka, Bye Bye BBY?)

Jeff Jordan

An example of their relative efficiency can be seen in labor: Revenue per employee for Amazon is $0.9 They historically have been among the most innovative and successful of the big box retailers, and were named “specialty retailer of the decade” in 2001 by Discount Store News. Revenue.

How Brooks Reinvented Its Brand

Inc Startups

It is hard to believe that Brooks, known for is brand ethos ''Run Happy,'' was on the brink of bankruptcy in 2001. He narrowed Brooks''s focus to running, cutting products that produced $30 million in annual revenue.

Ten Highly Successful Bootstrapped Startups

Software By Rob

In October of 2001, Webster, McCarthy, and Graff decided to do just that and GoldStar was born. By generating a steady revenue from consulting projects and sales, the founders were able to spend time growing their business slowly. Photo by earthlightbooks.

'Game of Thrones' Author George R. R. Martin on What Makes Ideas Work

Inc Startups

Martin''s stance reminded me of a 2001 profile I wrote of a North Carolina consultancy called Best Practices. Since starting in 2007, Rocket has backed about 75 start-ups in more than 50 countries that now generate more than $3 billion in annual revenue and employ about 25,000 people. A good idea is a good idea, even if it comes from someone else. If you haven''t heard of George R.

4 Super Smart Entrepreneurs Who Are Dominating their Market

Blogtrepreneur | Entrepreneur Blog

He held the positions of co-founder, CFO, and chief strategist of this profitable company that boasted close to $40 million in annual revenue and over 200 million registered users. In 2001, Ferris founded BrainQUICKEN, an online nutritional-supplements company.

You Can't Ever Have Enough Hype Until You Have Too Much Hype

Babbling VC

I am seriously babbling like everyone else did in 2001, 2008 and now again in 2011. Make your customers happy, especially the ones generating the majority of your revenues. No matter what, stay focussed on generating revenues. . OK, hands up, who's truly surprised by the drop in the stock markets or the postponed tech IPO's or even the upcoming slowdown in venture financing? No really, who is surprised? If you said yes, stick your head back in the sand.

Want to build a successful software business? Can you answer these 8 questions?

Business of Software Blog

A great example of designing switching costs into a business model is Apple’s introduction of the iPod in 2001. Does your business model produce recurring revenues? Recurring revenues are best explained through a simple example.

Building the Global Startup Part 3: Assigning Ownership and Achieving Commitment

John O'Farrell

The business had taken off like a rocketship from its founding in late 1999—revenue grew from $2M to $55M in a year. When the recession of 2001 hit, we had three fairly expensive European sales offices with varying levels of productivity and maturity.

4 Ways to Get a Celebrity Endorsement

Inc Startups

The payoff: a revenue increase of more than 300% during the past three years, Neff says. In 2001, Uri Minkoff and his wife were at a party in Los Angeles. Friends in high places can help your company take off--but big endorsements cost big bucks.

After 20 years: Updating the Berkus Method of valuation

Berkonomics

There is a universal truth: fewer than one in a thousand start-ups meet or exceed their projected revenues in the periods planned. I must believe that the candidate company, if successful, could achieve some level of gross revenue at the end of the fifth year in business.

Going Green and Growing Fast

Inc Startups

2012 Revenue: $4.2 2012 Revenue: $7.7 738 Three-Year Growth: 622% 2012 Revenue: $19.4 e-cycle helps corporations reuse and recycle employee phones and produce new revenue through buyback programs. 2012 Revenue: $8.9 2012 Revenue: $68.8 2012 Revenue: $3.6

Can Document Management Restore Consumers’ Trust In Enterprises?

YoungUpstarts

Standardization and regulatory authorities (such as the International Organization for Standardization (ISO) and the Internal Revenue Service (IRS) presently have material on their websites encouraging use of such systems. Founded in 2001, eFileCabinet, Inc.