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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

Lately I’ve been having to say things I thought I’d never have to remind people, like, “getting to positive gross margin in several territories is a very low bar to claim success” or “profitable excluding marketing costs” is not actually a real thing. But not doing basic research makes no sense.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. ” If you’re not profitable you’re purely a cost center to them. Cost of Goods Sold (COGS) =. Operating Costs.

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How to find funding for your hardware startup while we’re waiting for the hardware revolution

Version One Ventures

Hardware requires time, money, and inventory. As a result, most venture capitalists are reluctant to touch hardware projects, opting for the lower costs and smaller risks of software. Here’s the advice I give these teams who are navigating the tough world of hardware financing. De-risk your startup as much as possible.

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Innovation at Argonne National Laboratory Incubator

The Startup Magazine

The program reduces research and development time and cost by allowing participants access to multi-million dollar equipment they likely would otherwise not be able to access. It’s not uncommon for participants to make changes based on performance or industry demands. Source: Pexels. R&D Catalysts. Innovation is tough.

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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. Entrepreneurs need to hit a happy medium with backers, not giving away too much but not making overly aggressive demands. ” The Cost of Financing. . ” The Cost of Financing. Even $15-20,000 is too expensive.

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4 Tips For Startups During A Pandemic

YoungUpstarts

The news is full of businesses adjusting to the demands of the outbreak — and the devastating fates of those who have been unsuccessful. The first step in any economic crisis is to evaluate your spending channels, and determine where you can cut costs. Evaluate and Reallocate Budget. Recalibrate and Reposition.

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Should Startups Care About Profitability?

Both Sides of the Table

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. COGS” represents the amount that each sale costs you. They both raised angel / seed money of $1.5 What did they actually do?