Startup Professionals Musings
SEPTEMBER 13, 2022
The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.
YoungUpstarts
JANUARY 10, 2020
When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue. In the early stages, it isn’t uncommon for businesses to bank their earnings on a handful of customers (or sometimes, just one). Rarely does a customer call it quits without sending some warning signs.
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Startup Professionals Musings
APRIL 4, 2022
The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.
Startup Professionals Musings
DECEMBER 6, 2019
The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.
Startup Professionals Musings
FEBRUARY 15, 2023
With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Keep expenses down, but keep customer visibility and sensitivity as a top priority. Favor profitability over revenue and user growth.
Both Sides of the Table
DECEMBER 11, 2022
We had nascent revenues, ridiculous cost structures and unrealistic valuations. In those years I learned to properly build product, price products, sell products and serve customers. Within 5 years I was on the board of real businesses with meaningful revenue, strong balance sheets, no debt and on the path to a few interesting exits.
Steve Blank
JANUARY 17, 2023
In exchange for attending an accelerator, startups give up 5% to 10% of their company’s equity. The studio’s internal team builds the minimal viable product, then validates an idea by finding product/market fit and early customers. In return for the lower risk, a venture studio typically takes a larger percentage of equity.
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