Steve Blank

JULY 30, 2014

Startups operate quickly – at a speed driven by the urgency of a proverbial gun-to-their-head called “burn rate.” their burn rate (the amount of money they’re spending monthly minus any revenue coming in) and. . —– Urgency Drives Innovation Speed.

Customer Development 335

Customer Development Design Developer Customer 335

Steve Blank

MARCH 17, 2020

Here are a few thoughts about operating in uncertainty in a pandemic. Large companies are sending employees to work at home. If you’re running a startup or small business, your first priority (after your family) is keeping your employees and customers safe. Burn Rate and Runway. And what’s in my lifeboat?”.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

VC Cafe

JUNE 6, 2024

Key Metrics for B2B SaaS Startups: Annual Recurring Revenue (ARR) Definition: ARR is the yearly value of a company’s recurring revenue from subscription-based services. Monthly Recurring Revenue (MRR) Definition: MRR is the predictable revenue a company expects to receive monthly from subscription-based services.

B2B 97

B2B Burn Rate Generative AI Retention 97

YoungUpstarts

MAY 19, 2016

by Gadiel Morantes , chief revenue officer at Early Growth Financial Services. Use burn rate as an example. If you don’t understand how much money your company is burning through each month, how can you expect to intelligently talk about your fiscal health? A Jenga tower is a precariously built one.

Technical Review 124

Technical Review Burn Rate IP Intellectual Property 124

Startup Professionals Musings

JULY 2, 2022

Then you walk the delicate balance between burn rates, revenue flows versus expenses, investment in marketing, and employees. Operational. Once a business is operational, the opportunity can be maximized, and risk managed through best-of-breed processes, and a rules-based control model.

Burn Rate 382

Burn Rate Angel Investor Operations Demand 382

Up and Running

FEBRUARY 20, 2015

If you don’t understand your key financial metrics, you have no way of monitoring your business’s health—and you risk mingling assets, incurring penalties for filing taxes late, overlooking expenses, and running into difficulties paying bills and employees, just to mention a few! What Is Operating Margin? What Is Cash Burn Rate?

Metrics 60

Metrics Burn Rate .Net Churn Rate 60

David Teten

NOVEMBER 26, 2019

Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate. … “ Group Health Cooperative , a nonprofit health care system in Seattle with 10,000 employees, has also thrown out its budgeting process.

Agile 60

Agile Management Forecast Silicon Valley 60

Up and Running

OCTOBER 7, 2019

KPIs can (and should) be used as a communication tool to align everyone in the organization so employees are empowered to take initiatives in achieving business goals. This metric helps determine how much cash you need for operation and expansion. Activation rate: measures how many visitors are engaging with your website or app.

Founder 71

Founder Retention Metrics Technical Review 71

Startup Professionals Musings

SEPTEMBER 30, 2019

Then you walk the delicate balance between burn rates, revenue flows versus expenses, investment in marketing, and employees. Operational. Once a business is operational, the opportunity can be maximized, and risk managed through best-of-breed processes, and a rules-based control model.

Entrepreneur 267

Entrepreneur Burn Rate Angel Investor Operations 267

Both Sides of the Table

JUNE 17, 2017

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. They don’t want high burn rates but they will never fund slow growth. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Startup Professionals Musings

OCTOBER 22, 2017

Then you walk the delicate balance between burn rates, revenue flows versus expenses, investment in marketing, and employees. Operational. Once a business is operational, the opportunity can be maximized, and risk managed through best-of-breed processes, and a rules-based control model.

Burn Rate 170

Burn Rate Angel Investor Operations Demand 170

Startup Professionals Musings

JANUARY 17, 2014

Then you walk the delicate balance between burn rates, revenue flows versus expenses, investment in marketing, and employees. Operational. Once a business is operational, the opportunity can be maximized, and risk managed through best-of-breed processes, and a rules-based control model.

Burn Rate 234

Burn Rate Angel Investor Entrepreneur Operations 234

Berkonomics

APRIL 16, 2020

Small businesses are the most vulnerable, even though most have furloughed employees. Rent and other fixed costs continue, even when revenues have dried up – a fatal combination. FINANCIAL: Do you have twelve to eighteen months of cash to cover your “burn rate” now and as you recover?

SBA 87

SBA Burn Rate Salary Stock 87

Startup Professionals Musings

JUNE 18, 2012

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. I now see and believe business plans that budget $1K for all this, versus a previous $20K or more.

Cost 255

Cost Burn Rate SEM Startup 255

Startup Professionals Musings

MARCH 28, 2016

In addition, if you are already a CFO, this position is a great springboard to the chief operating officer (COO) or even the CEO position in the startup, based on recent reports. Creating operational processes and procedures. Investors love to see a former CFO running a new business. Finding creative ways to fund activities.

Entrepreneur 120

Entrepreneur Burn Rate Leadership Salary 120

Startup Professionals Musings

MARCH 30, 2015

Then you walk the delicate balance between burn rates, revenue flows versus expenses, investment in marketing, and employees. Operational. Once a business is operational, the opportunity can be maximized, and risk managed through best-of-breed processes, and a rules-based control model.

Entrepreneur 120

Entrepreneur Burn Rate Startup Angel Investor 120

Startup Professionals Musings

FEBRUARY 15, 2011

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. I now see and believe business plans that budget $1K for all this, versus a previous $20K or more.

Entrepreneur 235

Entrepreneur Burn Rate SEM Social Network 235

Both Sides of the Table

JULY 13, 2013

” I want to do the best deals wherever they are, but I thought, most VCs I met didn’t have very good operational experience, so I thought, “Well, what if I created a blog called Both Sides of the Table and could emphasize the fact that I used to sit on your side of the table? How are you going to get employees?

Cofounder 337

Cofounder Technical Cofounder Startup San Diego 337

Gust

JUNE 10, 2012

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. I now see and believe business plans that budget $1K for all this, versus a previous $20K or more.

Cost 139

Cost Burn Rate SEM Startup 139

The Next Web

JUNE 15, 2015

Having a geographically strategic point of operations can flow on to other key factors that influence a startup’s expansion — the overall management of the new location, how it is viewed by consumers, and the level of generated exposure. At the end of the day, hiring the right talent can, in essence, make your company in the long run.

Global 60

Global Burn Rate Startup CPA 60

Startup Professionals Musings

FEBRUARY 13, 2010

Founders now routinely use their home to operate their startup until they are well into the revenue phase. That’s a burn rate of at least $10K per month that can be eliminated if you are handy with computers and Quickbooks. I now see and believe business plans that budget $1K for all this, versus a previous $20K or more.

Burn Rate 125

Burn Rate SEM Social Network Angel Investor 125

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. Not to mention health insurance benefits.

Entrepreneur 93

Entrepreneur Distribution Employee Arizona 93

Startup Professionals Musings

JULY 15, 2013

In reality, you need to set these projections as goals for your own use, to convince employees as well as investors that you have a business which is challenging, but achievable. Otherwise, sales, marketing, and operational costs will kill you. The holy grail is break-even, when revenues first catch up with the outflow.

Forecast 238

Forecast Business Plan Burn Rate .Net 238

Startup Professionals Musings

JUNE 9, 2012

In reality, you need to set these projections as goals for your own use, to convince employees as well as investors that you have a business which is challenging, but achievable. Otherwise, sales, marketing, and operational costs will kill you. The holy grail is break-even, when revenues first catch up with the outflow.

Forecast 238

Forecast Burn Rate .Net Business Model 238

Startup Professionals Musings

MARCH 22, 2011

In reality, you need to set these projections as goals for your own use, to convince employees as well as investors that you have a business which is challenging, but achievable. Otherwise, sales, marketing, and operational costs will kill you. The holy grail is break-even, when revenues first catch up with the outflow.

Forecast 230

Forecast Burn Rate Startup .Net 230

ReadWriteStart

APRIL 30, 2020

Many fail because they fail to keep their burn rate in check and then run out of investors who are willing to fund their operations. They treat their startup’s burn rate like it’s etched in stone. That money would be better spent on creating products and services that drive revenue, however.

Burn Rate 107

Burn Rate Management Startup Early Stage 107

Startup Professionals Musings

MARCH 25, 2010

In reality, you need to set these projections as goals for your own use, to convince employees as well as investors that you have a business which is challenging, but achievable. Otherwise, sales, marketing, and operational costs will kill you. The holy grail is break-even, when revenues first catch up with the outflow.

Forecast 151

Forecast Startup Burn Rate .Net 151

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

abovethecrowd.com

FEBRUARY 24, 2015

As a result, a “late-stage” financing is no longer reserved for high-revenue, pre-profitability companies getting ready for an IPO; it is simply any large round of financing done at a high price. You must subtract it from your top-line revenue. You should not pay a net revenue multiple for a gross revenue disclosure.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. Most startups operate close to themargin of failure, and the distraction of having to deal with clientscould be enough to put you over the edge. The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

www.chubbybrain.com

SEPTEMBER 28, 2011

Like Edison and the lightbulb, like Gates and the pc operating system, I would launch a revolution that would transform society while bringing me wealth and fame. spent $20 million to get back to the same revenue that I had when I was CEO. They in no way summarize the posts so please do read them (but probably not all at one time).

Software Review 79

Software Review Startup Technical Review Vesting 79