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Your need for a board grows with complexity.

Berkonomics

Bank loans with restrictive covenants are taken on. Good audit committees also review the corporation’s insurance portfolio, risk protection policies such as email and computer use, disaster response and recovery policies and any other area where the corporation’s very life could be at risk from inattention.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%. Many software companies have > 80% gross margins which is why they are more valuable than say traditional retailers or consumer product companies.

Burn Rate 383
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Why Crunch Modes Doesn't Work: Six Lessons

www.igda.org

Ive spent 20 years developing and managing software projects. But, over time, I noticed that the productivity losses that result from working too many extra hours start taking a bigger toll faster than most software managers realize. In terms of knowledge workers, a programmer produces more good code and fewer bugs when well-rested.

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The need for a board grows with complexity

Berkonomics

Bank loans with restrictive covenants are taken on. Second, the audit committee is responsible for hiring an outside auditor as appropriate, reviewing the accounting practices of the corporation and making sure that laws are followed relating to recognition of revenues and expenses. The number of employees grows.