Startup Professionals Musings

AUGUST 7, 2015

How the solution and business model work to fund the business. Investors will impatiently expect a winning business model, customer segment definitions and volume projections. Investors will impatiently expect a winning business model, customer segment definitions and volume projections.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Up and Running

SEPTEMBER 17, 2014

After all, a sustainable business model requires repeat customers! This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

VC Cafe

NOVEMBER 2, 2019

Forecasting is sometimes done by dragging the mouse based on many assumptions, because it’s hard to predict the future. One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate?

B2C 141

B2C Technical Review Startup Retention 141

Startup Professionals Musings

JUNE 9, 2012

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. This forecast is really their commitment. Plan to re-forecast every quarter. Margin is everything. Cash flow is king.

Forecast 238

Forecast Burn Rate .Net Business Model 238

Startup Professionals Musings

MARCH 22, 2011

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. This forecast is really their commitment. Plan to re-forecast every quarter. Margin is everything. Cash flow is king.

Forecast 230

Forecast Burn Rate Startup .Net 230

Startup Professionals Musings

MARCH 25, 2010

This forecast is really their commitment. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Initial forecasts should be aggressive for credibility, but don’t shoot for the moon. But a solid financial forecast is a required cornerstone for any business plan.

Forecast 151

Forecast Startup Burn Rate .Net 151

Up and Running

MAY 22, 2018

Every successful small business goes through four stages during its entire existence: Existence : expanding from pilot production to broad-scale production. Survival : generating enough cash flow to stay in business. Success : business model works and is stable, but there is still untapped potential.

Exit Strategy 90

Exit Strategy Angel Investor Search Elevator Pitch 90

Both Sides of the Table

FEBRUARY 14, 2016

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. Huge funding increases lead to massive wage inflation, rent inflation and thus higher burn rates. Companies are valued based on the expectation of future profits.

Valuation 150

Valuation Down Round Startup Later Stage 150