Startup Professionals Musings

MARCH 25, 2010

Otherwise, sales, marketing, and operational costs will kill you. Next comes sales volume by channel. Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. That should be true even if your customer is really a distributor. This forecast is really their commitment.

Forecast 151

Forecast Startup Burn Rate .Net 151

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.

Burn Rate 144

Burn Rate Forecast Angel Investor Revenue 144

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.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

Steve Blank

APRIL 20, 2009

Companies specializing in components and systems that operated in the microwave portion of the electromagnetic spectrum sprouted faster than fruit trees in the valley orchards. In contrast, spark gaps are broad-band radio “noise&# sources – the idea of discrete radio channels was impossible spark gaps because of this.

Silicon Valley 297

Silicon Valley RSS San Francisco Technical Review 297

YoungUpstarts

JANUARY 11, 2018

By saturating one market or sub-market at a time, we started building the best marketing channel there is: word of mouth (WOM). That’s why WOM marketing is the most ef- ficient marketing channel that exists. Our approach with VEEV — going slow in the beginning — actually made acquiring customers easier.

Los Angeles 133

Los Angeles Investment Bankers Cofounder Viral 133

Startup Professionals Musings

JANUARY 4, 2015

As a rule of thumb, most viable businesses need a gross margin above 50 percent, even on wholesale prices, to cover operational expenses and survive as a business. Project based on your market size how many widgets you will sell in every channel. Forecast sales-volume expectations. Calculate investment amounts and timing.

Forecast 120

Forecast Entrepreneur Burn Rate Widget 120

Up and Running

DECEMBER 11, 2013

Investors like valuation to relate to actual business numbers, such as sales, gross margin (price less direct costs), and burn rate or fixed costs. More often, it’s secret formulas, secret ingredients, trade secrets, and relationships with channels of distribution. It’s simple math. . Sometimes it’s progress made in branding.

Valuation 136

Valuation Oregon Burn Rate Angel Groups 136

Hearpreneur

JULY 7, 2019

Every waking day, we are having tremendous changes in regulations and technology which greatly affects the way businesses operate. Some entrepreneurs will say the future is definitely bright but to others, some of these changes work against their expansion and business operations. Thanks to Scott Smith, CloudApp ! #6-

Entrepreneur 91

Entrepreneur Distribution Employee Arizona 91