Remove Dilution Remove Forecast Remove Revenue Remove Sales
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Further Thoughts on Startup Operations

Both Sides of the Table

This person can do budgeting, forecasting, strategic planning, legal, HR, office moves, etc. Still, I’ll bet that functionally you divide areas of competence like sales & marketing, product, engineering, biz dev, etc. .&# The company that wrote me this told me they were doing $4 million in sales. What will it do?

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How to Plan a Business Expansion Using Your Business Plan

Up and Running

You may grow to tap new markets or increase sales in your current markets. It starts with a high-level strategy and continues all the way to market analysis, sales plans, operations planning, and financial modeling. Financial projections: You’ll need to forecast how the expansion will improve future profitability.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

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How to Raise Investment Capital - According to VC Jeff Clavier

ReadWriteStart

Every company has a forecast for how it will get to an arbitrary $100 million in revenue and they all hit it on year five. At this stage, the founders pay for the dilution of the shares and the funders will take 20 to 25% of the company. VCs need to figure out the people side of the company and raising money is a sales job.

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Looking for investors? Here’s how to value your startup

The Next Web

As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. revenue, cash flow or net income multiples from recent M&A transactions in your industry.

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Estimating Realistic Startup Costs

Up and Running

Two essential lists: Startup costs normally include startup expenses and startup assets: Startup expenses: These are expenses that happen before you launch and start bringing in any revenue. And it interferes with the estimates and dilutes their value. Second, money to be spent on operating expenses and buying inventory.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. 3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.