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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.

Startup 418
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Don’t Forget Grants If You Need Early Seed Money

Startup Professionals Musings

But before you conclude that your funding problems are solved with grants, you should consider the direct and indirect costs of grant funding: Grant applications are bureaucratic. Professional help costs money. Grants start as small a few thousand dollars, but can provide millions of dollars in capital to new ventures.

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Don’t Forget Grants If You Need Early Seed Money

Gust

But before you conclude that your funding problems are solved with grants, you should consider the direct and indirect costs of grant funding: Grant applications are bureaucratic. Professional help costs money. Grants start as small a few thousand dollars, but can provide millions of dollars in capital to new ventures.

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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. Source: Pexels. R&D Catalysts. Emergy , another winner, has an agreement with a company to test its bio-designed activated carbon.

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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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4 Tips For Startups During A Pandemic

YoungUpstarts

The first step in any economic crisis is to evaluate your spending channels, and determine where you can cut costs. Contributing seed money to an employee’s HSA or 401K, or instituting a match program for contributions, can encourage employees to save. Evaluate and Reallocate Budget.

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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?