VC Cafe

JUNE 6, 2024

Customer Acquisition Cost (CAC) Definition : CAC is the total cost of acquiring a new customer, including marketing and sales expenses. Gross Margin Definition: Gross margin is the percentage of revenue remaining after deducting the cost of goods sold (COGS). This resulted in cost cutting exercises to extend runway.

B2B 97

B2B Burn Rate Generative AI Retention 97

YoungUpstarts

JANUARY 7, 2018

The digital revolution is disrupting the traditional business model for small and medium businesses (SMBs). This means finance, operations, sales, and marketing departments as well as leadership can all access the same data. Big companies can absorb more loss when it comes to advertising; but not small businesses.

Artificial Inteligence 164

Artificial Inteligence Analytics SCRUM Cofounder 164

Up and Running

MARCH 14, 2018

Your revenue or business model. Customer acquisition: Marketing and sales strategy. This is usually one of the most skipped sections of an investor pitch and a full business plan. How much will it cost? Your financials should easily allow you to calculate your customer acquisition costs.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Startup Professionals Musings

JANUARY 6, 2020

The way to start is with a sample financial model, available from many sources on the Internet, such as over 200 downloadable free from the Corporate Finance Institute website. Don’t try to build the “ultimate” business model, for all possible alternatives, in multiple business domains.

Conversion Ratio 308

Conversion Ratio Startup Business Model eCommerce 308

ReadWriteStart

JULY 17, 2023

The acquisition will help Sheela Foam enter the fast-growing branded furniture market and expand its presence in the furniture industry. The platform has raised over $225 million through equity and debt financing to date. Furlenco’s innovative business model has disrupted the traditional furniture industry in India.

India 104

India Acquisition Merger Curation 104

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture. 

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Professionals Musings

MARCH 25, 2023

Re-investing profits to grow the business is organic growth. The concept of free goods and services to get you hooked, financed by deep pockets, or advertising, seems marginally ethical to many. Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

JULY 13, 2019

An effective tool I see used more and more, as a prelude to a more detailed business plan, is the Business Model Canvas , first introduced by Alexander Osterwalder back in 2008. In my experience as a new business advisor, a business is nothing until people are aligned and work in sync. Key resources. Try this one.

Intellectual Property 250

Intellectual Property Business Model Angel Investor Channel 250

Startup Professionals Musings

JUNE 21, 2020

Re-investing profits to grow the business is organic growth. The concept of free goods and services to get you hooked, financed by deep pockets, or advertising, seems marginally ethical to many. Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range.

Revenue 434

Revenue Valuation Viral Retention 434

David Teten

APRIL 1, 2021

As an agenda for each meeting, I suggest: – How can we most add value, in addition to helping with financing? Then, pluck the low-hanging fruit: easy, low-cost, and highly scalable infrastructure. And of course, if she works directly with a company, then the company bears the full cost, and the investor doesn’t.

Private Equity 78

Private Equity Venture Capital Portfolio Equity 78

Startup Professionals Musings

OCTOBER 19, 2015

Most technologists have little interest in the mechanics of starting and building a business. That’s why I recommend that they find a co-founder who loves business challenges, including marketing and finance. Outside investors are most interested in scaling a proven business model, not research and development.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” 15-20% sold per round.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Stages of Equity-based funding. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

OCTOBER 21, 2012

Moules believes that getting a bank loan to start a business is not ideal. In fact, he points out that conventional term loans are a far less common way to finance a business, and in some countries, credit cards are actually a more popular source of startup capital. Don’t get hung up on the business plan.

Technical Review 184

Technical Review Entrepreneur Bootstrapping Acquisition 184

Up and Running

JANUARY 15, 2018

Once you’ve decided that you’re ready to start a small web design firm, you’ll need to develop a host of skills to help you run a successful business, including time management, sales and promotional strategies, and client acquisition. Create a Lean Business Plan. Calculate startup costs. The basics.

Web 86

Web Design Software Review Elevator Pitch 86

Steve Blank

JUNE 23, 2016

These resulting business models made them look incredibly profitable. Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production. They knew how to execute the current business model. Risk capital has provided financing for new ideas in the form of startups.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

ReadWriteStart

JUNE 16, 2011

For the uninitiated, Zoho introduced a CRM system that was one-tenth the price of Salesforce.com and penetrated the lower end of the market using an Indian cost structure. Zendesk is heavily financed by Benchmark and Charles River and has 10,000 customers. The company already has paying customers and a validated business model.

India 123

India Bootstrapping Non-Compete Entrepreneur 123

Steve Blank

MARCH 4, 2014

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. Every large company, whether it can articulate it or not, is executing a proven business model (s).

IRR 335

IRR Startup Business Model Agile 335

Transformify

MAY 24, 2018

Identify, address and implement solutions for operational improvement and cost opportunities. This includes investment priorities / disposal cases.

Operations 40

Operations Finance Forecast Global 40

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. Repaid 12-36 months with ability to prepay at reduced cost. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

YoungUpstarts

AUGUST 30, 2018

From the outside, it might appear that accounting and finance are complex tasks in need of simplification. As you can see the key is not just to know the formulas but to also understand the impact different activities have on costs and profitability. Why customer acquisition? Predictions. management reporting).

Entrepreneur 100

Entrepreneur Early Stage Acquisition Forecast 100

Up and Running

JULY 2, 2014

Picking the right attorney in your startup is as important as picking the right business partner. You can’t underestimate the importance of selecting an attorney who “gets” your business model, your market opportunity, and most importantly, your fundraising and exit strategy. Our attorney should have known.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

The Startup Magazine

FEBRUARY 21, 2020

In order to ensure a successful business, it is important that entrepreneurs make smart and calculated business decisions. Such as ensuring their companies are properly insured, that they have a separate current account for business finances and that they are up to date with the legalities of their business.

Startup 115

Startup Acquisition Business Model Finance 115

K9 Ventures

APRIL 27, 2011

Their business model was to provide retailers with a new interface for shopping for soft goods — something that hasn’t changed a whole lot since Web 1.0. On future occasions, whenever I expressed an interest to invest, the founders came back and told me that they had an acquisition offer on the table!

Software Review 134

Software Review Technical Review IP Finance 134

Steve Blank

FEBRUARY 22, 2010

Startups that are searching for a business model need to keep score differently than large companies that are executing a known business model. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. Managing the Business. Here’s why.

Balance Sheet 304

Balance Sheet Startup Burn Rate Metrics 304

Duct Tape Marketing

FEBRUARY 3, 2022

Amanda Dixon found it difficult to find an M&A advisor who understood that landscape when she went to sell her own business. Since 2015, her company, Barney, has guided over 150 media, marketing & tech companies through acquisitions. Questions I ask Amanda Dixon: [1:14] What’s the story behind your company name? [6:33]

Entrepreneur 76

Entrepreneur Technical Review Cofounder Valuation 76

Up and Running

MAY 3, 2012

From a young person’s perspective, with tight labour markets, decreasing barriers to entry, low capital-intensive business models and immediate free access to a global market, the appeal is also compelling. What is there not to like? The list goes on. To be clear, I’m not anti-entrepreneurship.

Entrepreneur 82

Entrepreneur Technical Review Silicon Valley Lean 82

Steve Blank

DECEMBER 7, 2010

Business schools teach aspiring executives a variety of courses around the execution of known business models, (accounting, organizational behavior, managerial skills, marketing, operations, etc.). In contrast, startups search for a business model. (Or to optimize this search. to optimize this search.

Wiki 316

Wiki Lean Management Business Model 316

Startup Professionals Musings

AUGUST 10, 2014

Re-investing profits to grow the business is organic growth. The concept of free goods and services to get you hooked, financed by deep pockets or advertising, seems marginally ethical to many. Most modern investors still look for a business model that embodies a gross margin over 50 percent and a net margin in the 20 percent range.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Duct Tape Marketing

FEBRUARY 28, 2022

You know, the cost of labor, but also consumption. Well, Uber has actually made new things possible in cities, new business models possible, uh, new businesses possible. Now, clients say that their virtual executive assistants have made an impact on their business. So we talked about changing demographic, right.

Technical Review 60

Technical Review Networking United States Artificial Inteligence 60

Startup Professionals Musings

JUNE 26, 2016

Re-investing profits to grow the business is organic growth. The concept of free goods and services to get you hooked, financed by deep pockets, or advertising, seems marginally ethical to many. Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range.

Revenue 145

Revenue Valuation Startup Viral 145

Steve Blank

APRIL 1, 2020

Any place with a fixed cost that relies on foot traffic will come under pressure. Cut costs to stay alive for 24 months. Payroll costs/other variable costs. Remember, a year from now no one wants to be the CEO of a company out of business whose lament is, “I did what the board told me to do.”. External Assessment.

South Korea 334

South Korea Salary Business Model China 334

Steve Blank

MARCH 11, 2010

Our goal is to teach students the key concepts of the startup process and help them understand that a startup is a search for a profitable business model. Students formed 5-person teams, came up with a business idea then got out of the building to validate their business model. What is a business model?

Intellectual Property 257

Intellectual Property Business Model Customer Development Distribution 257

www.inc.com

SEPTEMBER 24, 2011

Small Business Success | Mondays and Thursdays. The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Todays Small Business News | Daily. Financing a Small Business. Buying a Small Business. RUNNING A BUSINESS. Financing A Small Business. Business Taxes.

Arizona 40

Arizona Equity Iowa Venture Capital 40

ConversionXL

OCTOBER 30, 2014

What they’re missing though, was that after many unsuccessful acquisition strategies , Dropbox took a step back and found that many of their existing customers found the platform because of referrals. Think buying a house, selling a business, saving for retirement). That’s the key to figuring out a good incentive, really.

Programming 107

Programming Marketing Analytics Portfolio 107

The Startup Magazine

APRIL 24, 2020

You basically take the overall revenue from your business (i.e. gross revenue) and then subtract your business’s operating expenses and cost of goods sold from that number. What you’re left with is your business’s SDE. Key Indicators That Can Increase Your Business’s Value. Established remarketing strategies (e.g.

eCommerce 92

eCommerce Valuation B2C Revenue 92

Steve Blank

AUGUST 31, 2009

So what’s wrong the product development model? The first hint lies in its name; this is a product development model, not a marketing model, not a sales hiring model, not a customer acquisition model, not even a financing model (and we’ll also find that in most cases it’s even a poor model to use to develop a product.)

Customer Development 244

Customer Development Developer Customer Silicon Valley 244