ReadWriteStart

JUNE 16, 2011

The company already has paying customers and a validated business model. In fact, they generated $100k in revenues over the last year, since they first pitched at one of our roundtables. Abhijit foresees primarily a technology licensing business model whereby device vendors would be paying royalty per handset or tablet.

India 123

India Bootstrapping Non-Compete Entrepreneur 123

Cracking the Code

OCTOBER 1, 2020

Here’s a short summary of the discussion: Guy, you launched Snyk in 2015, and a large part of your success was driven by your freemium model. With COVID, we’re getting into a world with tighter budgets and likely longer sales cycles. It took us longer to get into revenue, but the freemium was a real accelerator for us.

Early Stage 62

Early Stage Open Source Development Team Review Security 62

Steve Blank

AUGUST 15, 2016

But to do it, you need to actually have a sustainable business model. Starting a business is too risky. The problem was had the wrong business model at the time. Our revenue model was wrong. The existence of a problem doesn’t mean there’s a solution to that problem. It’s too hard.

Cofounder 142

Cofounder Entrepreneur Africa Sales Cycle 142

Steve Blank

AUGUST 15, 2016

But to do it, you need to actually have a sustainable business model. Starting a business is too risky. The problem was had the wrong business model at the time. Our revenue model was wrong. The existence of a problem doesn’t mean there’s a solution to that problem. It’s too hard.

Cofounder 120

Cofounder Entrepreneur Africa Sales Cycle 120

Startup Lessons Learned

MAY 9, 2012

In this excerpt from The Lean Entrepreneur , by using fishing as an analogy, Brant and Patrick reveal how market segmentation influences your business model and why “For Whom” is as important as “What” to build. Market segments drive your business model.

Entrepreneur 167

Entrepreneur Lean Southern California San Diego 167

ReadWriteStart

SEPTEMBER 23, 2010

First up was Brad Barrett presenting GrillGrate , a grill accessory with which Brad has built a year-to-date revenue of $400,000. With enterprise customers, this would result in tremendous exit barriers, making sales cycles long and involved, which a small startup will find hard to withstand. GrillGrate. PowerStores.in.

India 114

India Silicon Valley Incubator Bootstrapping 114

ConversionXL

SEPTEMBER 20, 2018

A big downside of the high-touch sales model is that the CAC is out of control, and the sales cycles are extremely long. As you can see in the graph below, high-touch sales is a leading indicator of CAC. A high-touch sales process can balloon customer acquisition costs. Perfect for hyper-niche solutions.

Marketing 289

Marketing Sales Cycle Acquisition Sales 289

www.forentrepreneurs.com

FEBRUARY 2, 2010

Business Model I would like to propose that in addition to team, product, and market, there is actually a fourth, equally important, core element of startups, which is the need for a viable business model. It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Version One Ventures

SEPTEMBER 11, 2013

Whenever there’s a complete disruption of the business model, it means that the underlying rules for that vertical have dramatically changed. Just adding a website to now offer books for sale will not suddenly make an offline bookstore a serious competitor to Amazon.

Sales Cycle 122

Sales Cycle Business Model Aggregator Vertical 122

Entrepreneurs-Journey.com by Yaro Starak

SEPTEMBER 13, 2011

You can check out part one of this series here: Part 1: Which Is The Best Business Model For Your Startup – B2B Or B2C? B2B” – means that you are selling a product or service to other businesses. This week I will explain further how a B2B product-based or service-based company can impact on the first-time entrepreneur.

B2B 105

B2B Business Model B2C Agile 105

Austin Startup

NOVEMBER 12, 2017

Let’s talk first about an angel round to individual investors, all of whom may be duly accredited but many of whom may have no background that enables them to understand fully your idea and your business model. Is third-year revenue of $10M good or bad? A price of $2 per share means nothing in itself.

Term Sheet 48

Term Sheet Technical Review Due Diligence Merger 48

NZ Entrepreneur

SEPTEMBER 16, 2020

For example, “How will unit cost affect our capital requirements and how will product pricing affect revenue?” It isn’t good enough to just say ‘what does halving my revenue do to the business?’ To identify sensitivities here, you need to comprehensively challenge your assumptions about demand, sales cycles, etc.

Startup 69

Startup Sales Cycle Down Round Revenue 69

Startup Lessons Learned

APRIL 14, 2009

Lessons Learned by Eric Ries Tuesday, April 14, 2009 Validated learning about customers Would you rather have $30,000 or $1 million in revenues for your startup? All things being equal, of course, you’d rather have more revenue rather than less. And yet revenue alone is not a sufficient goal. More on that in a moment.

Customer 167

Customer San Francisco Lean Hockey Stick 167

A Crowded Space

AUGUST 27, 2014

So, even if you’re doing 100M in gross services, you’re really still doing less than 10M in net revenue. Some marketplace businesses have started monetizing at least in part through higher-margin software fees. . There is a new trend emerging which combines two of the most beloved business models in tech. .

Sales Cycle 110

Sales Cycle Software .Net Business Model 110

Hippoland

AUGUST 8, 2018

Diving in a bit more into some thoughts here: 1b) Ad-based revenue streams generally have terrible unit economics. A typical ad-based revenue stream on a media website is around $5 per 1000 eyeballs ($5m CPM and give or take $1-$20ish CPMs). Sales cycles matter though. You definitely can and there are many who do.

Founder 48

Founder Sales Cycle Affiliate Retention 48

Hippoland

AUGUST 8, 2018

Diving in a bit more into some thoughts here: 1b) Ad-based revenue streams generally have terrible unit economics. A typical ad-based revenue stream on a media website is around $5 per 1000 eyeballs ($5m CPM and give or take $1-$20ish CPMs). Sales cycles matter though. You definitely can and there are many who do.

Founder 48

Founder Sales Cycle Affiliate Retention 48

Hippoland

AUGUST 16, 2018

But outcome-differentiation is probably lacking – people who use Mailchimp use it to increase revenue by selling more products / services via their emails. 3) Your business model seems flawed OR is not the right fit I talked a lot about unit economics and sales cycles in my last post.

Sales Cycle 54

Sales Cycle Differentiation Early Stage Bootstrapping 54

This is going to be BIG.

NOVEMBER 10, 2011

Slow sales cycles. Business Insider wrote about our investment in the company yesterday. You can sit in a pitch meeting with an investor demoing your product, and hypothesize as to whether or not there will be a market or even a business model for something, or you can role reverse and "Show them the money".

Sales Cycle 121

Sales Cycle Government Revenue Sales 121

Hippoland

AUGUST 16, 2018

But outcome-differentiation is probably lacking – people who use Mailchimp use it to increase revenue by selling more products / services via their emails. 3) Your business model seems flawed OR is not the right fit I talked a lot about unit economics and sales cycles in my last post.

Sales Cycle 48

Sales Cycle Differentiation Early Stage Bootstrapping 48

K9 Ventures

SEPTEMBER 14, 2016

” If the company adopted this model, not only would they have more revenue ($24K/year vs. $20K one-time) from the sale of the robot, but they would end up with a recurring revenue model, which would make for a much better business model for the company rather than selling complex widgets.

Widget 48

Widget Sales Cycle Revenue Business Model 48

ReadWriteStart

MAY 4, 2011

Manoj is experiencing a long sales cycle of close to 12 months, but he has already created a sustainable company that has revenues and profits. He is exploring outside financing, but my concern is that unless the growth rate accelerates, this particular business may not fit the venture model.

India 116

India Entrepreneur Silicon Valley Massachusetts 116

infochachkie.com

SEPTEMBER 24, 2011

There is an inherent conflict in a consultant’s business model and the needs of a startup. For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage. Pyramid Power.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

ConversionXL

JUNE 2, 2022

In this article, you’ll learn how to define your ABM strategy so you can target the right accounts and increase your revenue. Account-based marketing is an approach where marketing and sales work together to nurture target accounts and convert or retain customers. A client may offer more than revenue. Coordinated.

Customer 98

Customer Marketing Channel Acquisition 98

www.forentrepreneurs.com

FEBRUARY 2, 2010

The company has just missed its quarterly revenue forecast. Lets take an example, and look at how they might do this: They will be able to tell you that revenue is composed of deals. To compute revenue, you multiply average deal size by number of deals. Bookings is the pre-cursor to Revenue. Obvious, isn’t it?

Metrics 55

Metrics Design Entrepreneur Startup 55

Duct Tape Marketing

APRIL 16, 2012

Before you launch a business or product test your assumptions – test your packaging, pricing, bundling, message, products, services, branding, revenue streams and business model with some segment of your market and pay attention. Then and only then, will you build a business that cannot fail. Test and evolve.

Sales Cycle 70

Sales Cycle Sales Customer Business Model 70

ConversionXL

APRIL 7, 2021

Sorry, but ABM is not B2B, nor is it right for all markets, business models, or companies (just like every company should not be running freemium aka PLG for acquisition.) Is ABM right for your business? Consider the complex sales infrastructure, long sales cycle, marketing teams to help move to generate interest.

IP 98

IP Marketing Technical Review Software Review 98

BeyondVC

AUGUST 26, 2008

Here is an excerpt from a prior post : Frictionless sales means reducing the pain for customers to adopt and use a service/product and consequently reducing the cost of sales and marketing to get a customer and generate revenue. The easier it is to scale the faster and more efficiently you can grow."

Cost 60

Cost Sales Sales Cycle Demand 60

Tim Keane

APRIL 14, 2008

Now, as their revenue grows substantially, its time to make the shift toward a more quantitative management environment. Can we, in short, develop knowledge that other competitors do not have to reduce our sales cycle and increase results? John Mullins: Getting to Plan B: Breaking Through to a Better Business Model.

Ireland 60

Ireland Wisconsin Forecast Sales Cycle 60

ConversionXL

JUNE 14, 2021

million in monthly recurring revenue (at time of writing). This message appeals to customers who value a comfortable shave without leaning solely on the subscription business model. They developed features with their specific audience in mind. It’s a position that’s helped them build a SaaS brand that generates over $2.3

Software Review 158

Software Review Audience Differentiation Framework 158

Hippoland

FEBRUARY 12, 2018

2) What is the business model and the potential unit economics? Certain investors tend to gravitate towards certain business models. At a high level, business is simple! :) You bring revenue in and your costs send money out the door. You want your revenue to be higher than your costs. Or in between?

Seed Stage 48

Seed Stage Business Model B2B Email 48

Hippoland

FEBRUARY 12, 2018

2) What is the business model and the potential unit economics? Certain investors tend to gravitate towards certain business models. At a high level, business is simple! :) You bring revenue in and your costs send money out the door. You want your revenue to be higher than your costs. Or in between?

Seed Stage 48

Seed Stage Business Model B2B Email 48

This is going to be BIG.

AUGUST 16, 2012

It's really questionable whether this constant capturing, slicing and sharing of my life has any viable business model whatsoever. The sites that have figured out business models are the ones that built in commercial presences from the beginning, or made the sites more optimal for commercial usage.

Cap Table 100

Cap Table Sales Cycle Venture Capital Curation 100

BeyondVC

DECEMBER 7, 2005

Frictionless sales means reducing the pain for customers to adopt and use a service/product and consequently reducing the cost of sales and marketing to get a customer and generate revenue. As I mention in an earlier post, " The less friction you have in your sales and delivery model, the easier it is to scale.

Sales 60

Sales Java Open Source Software Review 60

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list!

Software Review 48

Software Review North America Europe Metrics 48

VC Cafe

JUNE 7, 2010

The new strategy gained Pudding some momentum in South East Asia and the company managed to secure agreements with mobile carriers in Thailand, Malaysia, Singapore and others, however, they did not translate into revenue. So what went wrong? According to Ariel, Pudding Media’s CEO, the company was ahead of its time.

Media 95

Media Malaysia Thailand Asia 95

Both Sides of the Table

MAY 7, 2011

It helps with sales cycles because customers know that they can switch away if they so choose. As an example, Joel says that there is a chief revenue officer who is solely responsible for bringing in revenue to StackExchange. He is responsible for bringing in revenue from advertising and their careers offering.

Software Review 285

Software Review Software St. Louis API 285