Burn Rate Channel Forecast Operations 
Startup Professionals Musings
OCTOBER 16, 2023
Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping.
Steve Blank
SEPTEMBER 5, 2018
Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan. These bubble startups were actually guessing at their business model and did premature and aggressive hype and early company launches and had extremely high burn rates – all predicated on an IPO to raise more cash.
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Startup Professionals Musings
FEBRUARY 5, 2021
Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping.
Startup Professionals Musings
JANUARY 4, 2015
Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping.
Startup Professionals Musings
DECEMBER 11, 2017
As a rule of thumb, most new businesses need a margin above 50 percent, even on wholesale prices, to cover operational expenses and survive long-term as a business. Based on your market size and penetration expectations, size how many units you will sell, at what price, in every channel. Calculate cash-burn rate and investment timing.
Up and Running
SEPTEMBER 17, 2014
ROI per Marketing Channel. It’s crucial to keep a handle of ROI per marketing channel in order to optimize marketing spending. This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations. It’s not enough to check this every quarter.
Startup Professionals Musings
JULY 15, 2013
Using your data, here are the basic elements of the projection process, which are measurable by milestones, and can be tracked to show when a re-forecast is required: Start with sizing per-unit profitability. Otherwise, sales, marketing, and operational costs will kill you. Next comes sales volume by channel. Cash flow is king.
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