article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. That said, nothing is cost-free.

article thumbnail

8 Key Ingredients to a Profitable Consulting Business

Startup Professionals Musings

The “product” value is difficult to quantify, the costs are nebulous, and entrepreneurs have to clone themselves to scale the business. Unless you have deep pockets, you won’t survive without an adequate margin, including all the costs of running a business and staying current with technologies and market changes.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

7 Strategies To Solve Your Business Problems Faster

Startup Professionals Musings

A broken process or a subtle quality issue can generate a flood of customer satisfaction problems, cost overruns, and loss of market share. Elon Musk often talks about identifying all the dimensions of a problem, such as lower cost battery technology, as the key to moving the electric vehicle industry ahead.

Dividend 382
article thumbnail

7 Considerations For Setting Your Bottom Line Balance

Startup Professionals Musings

How does any entrepreneur define the right balance, and then measure their performance against real metrics? Most customers today won’t pay you five times the cost of alternatives, just because yours is “green.” It’s difficult to measure the planet and people accounts in any quantifiable terms, compared to profits.

Green 275
article thumbnail

5 Startup Challenges That Derail Many Entrepreneurs

Startup Professionals Musings

Of course, there are no guarantees, but I still see otherwise smart entrepreneurs taking shortcuts in their hiring, or jumping into business relationships based on emotion or low cost. One of the pitfalls of optimism is the expectation for early customer growth, and understating the real costs of design, development, and inventory.

article thumbnail

How Great, Operationally-Focused CFO’s Can Transform Your Business

Both Sides of the Table

It’s such a tricky balance between being cost-focused & scrappy versus being impractical with how you spend your time. What if you are measuring CAC wrongly and you’re really not acquiring customers cost effectively? The full financial details and metrics were in the deck. And so must you. HR & Legal.

article thumbnail

5 Steps To Get You From Your First Idea To A Business

Startup Professionals Musings

His challenge is to focus on one market, with a specific design, cost, and price. At least the first time around, it pays big dividends for an idea person to find a partner with the business skills you haven’t tested yet. Create a written plan, with target milestones and metrics. For example, I have a friend with a Ph.D.