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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. So your Q1 results will be $180,000 less profitable than if you hadn’t hired them. Cost of Goods Sold (COGS) =.

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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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Start Up Business Grants 101: Meaning, Funding & Tips

Board Effect

They simply don’t have the seed money to get a business or organization off the ground. Grant money usually comes with limitations on how organizations can use it. It may also be worthwhile to consider hiring a grant writer to champion the process.

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early. About 18 months ago in early 2008 we hired an analyst (pre-MBA), but wanted to wait until after Summer to hire a post-MBA associate. You have kids, a mortgage, MBA debt? It was May.

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Choose Your VC Investor Carefully

Both Sides of the Table

For example, a recent phone call I had with a young entrepreneur straight out of one of the most prestigious engineering schools in America he asked, “I have an offer for $400,000 in seed money but the VC wants me to agree now to bring in a new CEO.&# This company is doing its SEED round and they already want to bring someone new in.

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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. . ” The Cost of Financing. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. Paying lawyers $50,000 when you are raising $500,000 doesn’t work.

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The Top 3 Financial Perks of Launching a Startup Company During College

The Startup Magazine

In return, you may be able to get your hands on some seed money for your college startup. Low Costs . The college campus itself provides a myriad of resources that otherwise would cost you a small fortune to utilize. Hiring your peers as employees or partners is a win win situation for everybody involved.