YoungUpstarts

OCTOBER 12, 2017

Many of these companies are pre-revenue and in the cash burn stage as they try to establish their technology and market. For many startups this results in a need to raise additional financing through debt or equity arrangements. Company growth and future forecasts are a critical component of going concern analysis.

San Francisco 114

San Francisco Forecast Early Stage Term Sheet 114

Startup Professionals Musings

JANUARY 4, 2015

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. Yet every business requires revenue and volumes, as certainly as it requires a product to sell. Forecast sales-volume expectations.

Forecast 120

Forecast Entrepreneur Burn Rate Widget 120

The Equity Kicker

MARCH 28, 2013

As you can see from the chart above revenues have now reached a reasonable scale and continue to grow very fast. Moreover, their star is rising, according to Forbes a year ago eMarketer was forecasting Twitter’s 2014 revenues at $540m, 43% less than the $950m they are now forecasting.

Forecast 131

Forecast Revenue IPO Advertising 131

Startup Professionals Musings

MAY 27, 2016

Who would have forecast that entrepreneur Gary Ross Dahl would make millions by starting a “ pet rock ” business way back in 1975? Even social entrepreneurs need milestones, quantifiable results, and revenue to sustain their value. Giving the wrong people money doesn’t help at the idea level. Focus on customer needs.

Technical Review 134

Technical Review Intellectual Property Due Diligence Angel Investor 134

Up and Running

JULY 1, 2020

Financial projections: You’ll need to forecast how the expansion will improve future profitability. Lenders and equity investors are less emotionally involved in the plan as people within the company. The investment expenses precede the revenues they will ultimately produce and may lead to cash or profitability constraints.

Business Plan 152

Business Plan Forecast Operations Dilution 152

Both Sides of the Table

SEPTEMBER 17, 2011

This person can do budgeting, forecasting, strategic planning, legal, HR, office moves, etc. I know it’s much sexier to race around talking about buying up companies than it is tweaking your business operations to accelerate revenue, reduce churn and grow faster. Dilute your cash, equity or both. What will it do?

Operations 292

Operations CTO Hire Startup Early Stage 292

Up and Running

JUNE 23, 2022

Where you borrow money from angel investors or venture capitalists willing to lend money to startups for more interest and usually an equity kicker as well. Giving a small percentage of ownership is called giving an equity kicker. Start by adjusting your milestones and forecasts.

SBA 163

SBA Finance Balance Sheet Technical Review 163

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Up and Running

OCTOBER 12, 2017

Whether you’re simply trying to scale your business or seeking equity investment, having a plan is key. . Many business owners fail to see the value of regular planning and forecasting, and it hurts their businesses because they haven’t planned for potential challenges and don’t have any kind of strategy for dealing with them.

Metrics 128

Metrics Software Review Forecast Small Business 128

Both Sides of the Table

MAY 19, 2010

Founded in November 2007 in New York City by Alexis Maybank and Kevin Ryan (co-founder of DoubleClick); CEO is Susan Lyne (ex-CEO Marta Stewart Living Omnimedia) Revenue estimates: $50mm in 2008; $170mm in 2009 (versus budget of $150mm); $450mm forecasted for 2010. Note that these are “gross” revenue numbers.

Partner 240

Partner New York City Cofounder Syndicate 240

Both Sides of the Table

OCTOBER 1, 2009

Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. We spent our future since the equity was artificial. Consumer spending is where I’m dubious.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

The Equity Kicker

DECEMBER 12, 2013

eMarketer are predicting that YouTube revenues will hit $5.6bn this year, 50% up on last year (reported in the Guarian ). Here are some other relevant facts: Projections of YouTube’s revenues are increasing over time – in May Morgan Stanley were predicting $4bn.

Revenue 96

Revenue Forecast Advertising Acquisition 96

Up and Running

MARCH 9, 2022

Use the OLE ratio to measure how your income increases or drops depending on the changes in sales volume to show how much revenue is available to cover non-operating costs. Let’s say that your organization earned $1 million in revenue last year, and it cost you about $300,000 to operate your business. Debt-to-equity ratio.

Equity 136

Equity .Net Balance Sheet Operations 136

Both Sides of the Table

NOVEMBER 19, 2009

He would have found somebody technical and inspired that individual to work for equity or deferred payment. The company had less than $5 million in revenue yet we had a multi-tab spreadsheet doing activity-based costing on our customer service staff, operations and technology. I said that was my point. What lovely charts!

Entrepreneur 414

Entrepreneur Fractional CTO Technical Review CTO Hire 414

The Equity Kicker

DECEMBER 2, 2015

His major point is that revenue multiples aren’t that high, largely because the market is highly competitive and margins are low – often because of Amazon. As you can see from the chart above, in Mahesh’s sample most of the companies have revenue multiples in the 1-2x range. Fitbit enjoys a 3.3x

Forecast 60

Forecast eCommerce Net Present Value Revenue 60

YoungUpstarts

MAY 17, 2019

But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes. For the good ones, challenge them to help grow the company and incentivize them to stay through promotions, profit sharing, or equity.

Due Diligence 163

Due Diligence Forecast Deal Structure Valuation 163

OnlyOnce

JULY 9, 2013

Chapter 2: Defining and Testing the Story…Start Out By Admitting You’re Wrong, A Lean Business Plan Template, Problem, Solution, Key Metrics, Unique Value Proposition and Unfair Advantages, Channels, Customer Segments, Cost Structure and Revenue Streams. Budgeting in a Context of Uncertainty, Forecast, Early and Often.

Startup 95

Startup Advisory Board Elevator Pitch Forecast 95

ReadWriteStart

JULY 18, 2011

He believes that equity need not be distributed equally, as long as everyone involved is happy with their arrangement. And as long as founders don't have an argument about equity shares in front of the investors they are pitching. You can also follow Kedrosky on Twitter. Are all co-founders equal, Clavier asked?

Investment Bankers 153

Investment Bankers Technical Review Cofounder Due Diligence 153

Startup Professionals Musings

DECEMBER 11, 2017

You need 5 percent or more of revenue for marketing, more for new development, and people costs will double as you add benefits, insurance, training, IT and processes. If you want to be assessed as a “premium” acquisition candidate down the road, an aggressive but reasonable target might be doubling revenue each year.

Burn Rate 144

Burn Rate Forecast Angel Investor Revenue 144

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. Investors love to be able to see what you told them in forecasts in prior years and then compare with how you actually performed. and then asking to take a brochure home with you.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

The Next Web

FEBRUARY 27, 2014

your equity in a hot new patented technology business), the higher the demand (e.g., 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. Supply and demand.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Berkonomics

FEBRUARY 11, 2021

Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month. Project your revenues and costs as in the original exercise. Project your revenues and costs as in the original exercise. One way to think for tomorrow. Something new emerges. The ultimate reminder.

.Net 62

.Net Forecast Salary Revenue 62

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.    And, while debt is less costly than equity, it can bankrupt a company more quickly than more expensive equity might. five years.).

Finance 83

Finance Bootstrapping Startup Equity 83

YoungUpstarts

JULY 2, 2019

With that being said, pro forma financial statements can still play their part as an important tool to lower potential risks and threats from competitors, help to plan for the future, and assist with securing loans or funding capital in return for equity. From a business perspective, it essentially means forecasted, predicted, or assumed.

Balance Sheet 127

Balance Sheet Forecast .Net Revenue 127

The Equity Kicker

JANUARY 27, 2015

As board members we needed to plan for the next round of fundraising, and that required knowing when product would be released and revenues could be expected to increase. The good news for agile fans is that this battle is only going one way.

Agile 60

Agile Management Forecast .Net 60

Up and Running

JULY 22, 2014

Sales forecast. It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. Cash flow statement.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

Startup Professionals Musings

FEBRUARY 13, 2016

How big is the funding request, and how much equity will you give? Quantify founder investments, both cash and sweat-equity. What are your forecasts for revenue, expenses and cash flow? What are your forecasts for revenue, expenses and cash flow? How much and when do you foresee investors getting a payout?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Up and Running

AUGUST 28, 2018

Revisit and update it regularly by comparing your forecasts to your actuals and adjusting as necessary. Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Sales forecast : projections of what you think you will sell in a given timeframe (one to three years). Be specific.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Growthink Blog

FEBRUARY 21, 2013

The JOBS Act makes equity-based crowdfunding much easier The JOBS Act makes it possible to raise funds from investors and donors through certain crowdfunding sites in exchange for equity in your company. As mentioned above, equity based crowdfunding was supposed to go live on January 1st 2013. more on this below). Remember that.

Equity 74

Equity Securities and Exchange Commission SEC Accredited Investor 74

YoungUpstarts

SEPTEMBER 15, 2018

You might as well have all your liquid assets and sweat equity in place but if you are unable to raise money for your business beyond the valuation which has been stated by your investors ($ 1.5 The financial forecasts will end up playing a big role here as well. Young businesses do take time to catch up on the revenue curve.

Pre-Money Valuation 124

Pre-Money Valuation Valuation Sweat Equity Startup 124

Berkonomics

MARCH 21, 2019

If you are a going business with a track record of revenues, then the importance of accurate current financial statements cannot be overstated. If there is no record of revenues, see the “The Berkus Method” available with any search query for valuing the business before revenues. Careful about “hockey stick” forecasts.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Cracking the Code

MARCH 12, 2010

So, here is the first edition, including the recent Q4 2009 earnings and the updated 2010 forecast. Given the predictability of SaaS GAAP revenues on a quarterly basis, the fact that the 08/09 projections were unchanged is not a surprise. In total, the cumulative cash balance of the group increased by 64%, or more than $1B!

Software Review 63

Software Review Technical Review Cloud Forecast 63

Startup Professionals Musings

AUGUST 13, 2012

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

YoungUpstarts

MARCH 24, 2020

manufacturing orders, in general, are predicted to soften, but orders for metal-working machinery and construction machinery are forecasted to hold steady. He builds sustainable revenue growth engines and drives their execution on behalf of his clients which include CEOs, business owners, and Private Equity firms.

Private Equity 118

Private Equity Vertical Forecast Equity 118

Up and Running

FEBRUARY 12, 2019

Investors want to hear about your first customers, other investments put into the company (including your own sweat equity), key media placement, signed letters of intent (LOI) to purchase/partner, product and customer milestones , key hires, and so on. 160 is average revenue per user (ARPU). 160 is average revenue per user (ARPU).

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. Projected revenues and expenses over the strategic period. This allows them to calculate burn rates, break-even points and forecast the company valuation over time.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

MAY 13, 2011

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290