Steve Blank

MARCH 17, 2020

And how much are variable expenses (salaries, consultants, commission, travel, AWS/Azure charges, supplies, etc.?). 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.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Startup Professionals Musings

MARCH 13, 2020

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Find some credible opportunity statistics that can support your own revenue expectations of between $20 million and $100 million in the fifth year.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Up and Running

MAY 1, 2014

Marketing and Sales Plan. What marketing and sales tactics will you be using? Your business plan isn’t complete without a financial forecast. Highlight the key aspects of your financial plan, ideally with a chart that shows your planned sales, expenses, and profitability. Marketing and Sales Plan. Read more ».

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Cracking the Code

JANUARY 22, 2009

Building Your SaaS Sales Compensation Plan. Compensating the sales force is a difficult task and the key is usually to keep things simple, so that each sales rep knows what he needs to optimize to make more money at the end of the quarter. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3%

Software Review 91

Software Review Clawback Sales Salary 91

Up and Running

APRIL 12, 2017

hopes to attract $100 million in orders this year, on its way to $4 billion revenue by 2020. By then, the company forecasts that its total digital business—more than 90 percent of IT software—may reach as much as $15 billion, up from $6 billion now.”. It reported that G.E. Cohan also recommends you prepare better for industry threats.

Software Review 108

Software Review Employee Australia Forecast 108

Up and Running

AUGUST 12, 2015

I am here to talk about LivePlan and give you some big picture information on business planning, forecasting, how to really kick your business off in the best possible way. What is revenue going to look like? Budgeting and forecasting, it’s not rocket science. I want to have enough revenue to hire a manager.

Forecast 60

Forecast Video Business Plan United States 60

Up and Running

AUGUST 19, 2014

You might have held off paying yourself while launching your startup, but is it time to give yourself a salary? Here are seven things to consider in order to determine if now is the right time to pay yourself a salary. Once you generate the financial support of investors, it may be time to reward yourself with a salary.

Salary 119

Salary Sweat Equity Silicon Valley Sales Cycle 119

Women Entrepreneurs Can

MAY 31, 2023

The distinctions between financial forecasting, modeling, and predictions must be understood and be asked by experts like Mark Hirschhorn for more reliable financial ideas. Using your chosen approach (top-down or bottom-up), forecast the revenue your startup will generate and the expenses associated with reaching that level of sales.

Balance Sheet 52

Balance Sheet Forecast United States Finance 52

Up and Running

MAY 16, 2017

Look closely at your cash flow forecast so that you can spend accordingly. You can always upgrade all of these items as your business starts to bring in revenue. That being said, intelligent spending on technology that promotes future marketing and sales campaign successes is always a good idea. Create a must-have list.

Technical Review 82

Technical Review SBA Small Business Administration Software Review 82

Up and Running

AUGUST 21, 2014

What a lot of companies or startups don’t realize is when you put up forecast together, it’s difficult if you’re a startup. You need to get to a point in your funnel where you have enough people coming in that you can get to that conversion rate that will get you the sales that you need to drive your business forward.

Metrics 84

Metrics Startup Churn Rate Forecast 84

Up and Running

JANUARY 29, 2019

According to consulting.com , “ The average annual salary for a Business Consultant is $72,900.” Regardless of what you read and guess, it’s important to talk to experienced individuals who can set you straight with honest expectations. , you can still reach out to those with similar business and revenue models. Competition.

Lean 64

Lean Business Plan Revenue Forecast 64

Up and Running

NOVEMBER 12, 2018

The subscription box industry is growing rapidly thanks to a steady revenue model and tapping into people’s love for surprises. Marketing and sales plan. Financial summary : Project your revenue for the first few years. Creating a buyer persona puts you in the customer’s shoes to guide marketing and sales decisions.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

Both Sides of the Table

AUGUST 28, 2009

Our sales forecasts were revised downward – many times. I know that we haven’t brought in revenue as quickly as we had hoped. They haven’t hit their revenue targets. Join because you’ll make a good not great salary. Our business development discussions took longer than planned. Believe me.

PR 331

PR Software Review Ireland Germany 331

Up and Running

JUNE 16, 2020

First, you’ll want to forecast your sales. Subtract your Cost of Goods from your Sales and you’ll get what’s called your Gross Margin. In addition to food costs, you’ll have labor costs including your own salary as well as any additional help you need. How many meals do you think you can serve in an average day?

Business Plan 161

Business Plan Forecast Social Media Cost 161

Berkonomics

FEBRUARY 11, 2021

Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month. Then they calculate cost of sales, and then project their expenses, to find the bottom-line profit or loss each projected month. Project your revenues and costs as in the original exercise.

.Net 62

.Net Forecast Salary Revenue 62

Up and Running

MAY 28, 2015

That’s the sales forecast, the spending forecast and the cash flow. You want to show that, and investors need to see the scale of a business that have to do with your sales forecast. They’re going to look first at the sales forecast. That’s a lean business plan. It is not a document.

Lean 60

Lean Business Plan Video Software Review 60

Up and Running

JULY 31, 2014

What is it about your business that made you think you’re going to make it this much in sales and yet somehow you didn’t achieve that. This means you need to set goals in sales and expenses. We really encourage you to think about your sales lines in terms of those big major categories. So think about sales goals.

Software Review 74

Software Review Sales Acquisition Small Business 74

Startup Professionals Musings

NOVEMBER 14, 2012

Here is my selection of ten key metrics that every six-sigma joint like GE tracks without thinking, but too many small businesses only monitor haphazardly, if at all: Sales revenue. Sales data needs to be correlated to advertising campaigns, price changes, seasonal forces, competitive actions, and other cost of sales.

Metrics 266

Metrics Retention Acquisition Salary 266

Small Business Force

SEPTEMBER 10, 2017

" A recent article in The Wall Street Journal noted that Lego, the Danish manufacturer of interlocking toys, would lay off 1400 workers after the first sales drop in more than 13 years. We had some nice sustained success with six consecutive quarters of record revenues and earnings. We were going to miss our forecast by 25%.

Small Business 32

Small Business Leadership Salary Forecast 32

Up and Running

APRIL 6, 2020

You’ll also have variable expenses such as salaries, travel, supplies, and other services you use to run your business. This is where forecasting and budgeting are crucial for the survival of your business. You’ll need to create multiple sales forecasts and expense budgets to explore different scenarios.

Burn Rate 100

Burn Rate Forecast SBA Cash Position 100

Up and Running

AUGUST 30, 2017

Like it or not, this will likely affect your revenue and enrollment, especially if you are offering part-time care. List an advisory board if you have one, list all employee salaries, incentives, referral bonuses for recruiting, and all such details. Having a solid marketing plan will help you get clear on your sales strategy.

Business Plan 93

Business Plan SBA Software Review Advisory Board 93

Up and Running

DECEMBER 9, 2014

What I did is I learned the art of a pro forma and the value of a pro forma which basically is a forecast. Two, revenue. If you don’t know what your cash flow forecast is, you don’t really understand your capital needs. You heard a little bit from others about that. What do you do? One, profit and loss statement.

Small Business 95

Small Business Finance Forecast Metrics 95

Up and Running

AUGUST 22, 2017

Forecast your sales and outgoings accurately. Forewarned is forearmed, so make certain that your cash flow forecasts are accurate, both in terms of figures and timing. Take a look at the golden formula for cash flow forecasting in small businesses. So what steps can you take to transform your cash flow?

Forecast 112

Forecast Stock America B2B 112

Startup Professionals Musings

NOVEMBER 26, 2012

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Steve Blank

JUNE 10, 2010

With venture capital came accountability to board members, forecasts, and other people’s agendas. Success for this new division meant generating substantial revenue and profit for company. Three years later the division had sold 1 million PC’s, had 9500 people and a billion dollars in sales.

Silicon Valley 328

Silicon Valley Entrepreneur United States New York City 328

Up and Running

OCTOBER 3, 2014

Subscription businesses are hot because of their recurring revenue model. The compounded earnings grow your revenue quickly and you don’t have to spend nearly as much time and effort getting them to come back and buy from you again. But, beyond the forecast, we needed to know what metrics we should be tracking.

Metrics 96

Metrics Churn Rate Forecast Revenue 96

Berkonomics

JULY 24, 2014

Most entrepreneurs, when starting to model their business operations using a spreadsheet, start with expected revenue by month. Then they calculate cost of sales, and then project their expenses, to find the bottom line profit or loss each projected month. Project your revenues and costs as in the original exercise.

Forecast 79

Forecast Salary Revenue Finance 79

Startup Professionals Musings

SEPTEMBER 30, 2011

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Up and Running

MAY 16, 2016

To supplement this guide, I interviewed an expert in the home health care field: Carol Byrne is the National Sales Director for 21st Century Health Care Consultants, a consulting firm which serves home health care agencies throughout the United States. Nursing aide. Social work. Occupational, physical, and speech therapy.

North America 95

North America United States Technical Review America 95

Both Sides of the Table

FEBRUARY 23, 2010

This is part of my ongoing series on startup advice but also filed under my sales & marketing posts. I’ve seen way too many startups spend all their energy getting channel deals done only to find out that they don’t produce ANY revenue. Sort of amortizing the costs of their sales reps over more products.

Channel 293

Channel Startup Sales Partner 293

Gust

NOVEMBER 18, 2012

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Startup Professionals Musings

SEPTEMBER 6, 2010

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage blogs and other resources, and maybe even pay themselves a salary. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

www.mint.com

MARCH 9, 2010

If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” These days revenue is the best source of capital. That’s cool.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Small Business Force

JULY 7, 2016

Let’s face it; sales people are unique. So, given this set of minefields, how does a small business owner successfully find and build a professional sales team that can help the company grow? That provides a solid foundation for ANY sales position. In any case, sales compensation is a necessity.

Sales 27

Sales Hiring Forecast Salary 27

crowdSPRING Blog

MAY 27, 2013

In business the verb usually refers to tools that are created to make projections of sales or profits, but can also be used to predict anything from website traffic to manpower requirements to employee health care costs. Project your sales. Manufacturers use sales projections for inventory and supply-chain management.

Lean 90

Lean Widget Italy Small Business 90

epaley.com

MAY 6, 2013

Once financed, everyone at the startup should have a reasonable salary, but the real compensation for achieving the improbable is the equity that is typically shared between all employees proportional to the expected contribution of each person. Using revenue metric.s Instead they do $9MM in sales. Bonuses are toxic at startups.

Salary 41

Salary Startup Equity Forecast 41

Up and Running

SEPTEMBER 17, 2014

Well first, from a financial standpoint you have to have enough revenue. No one would be able to hire anybody, or even would be able to hire a couple of employees if you had to have cash, but you’ve got to have a run rate and a forecast that you can comfortably do it. Not just their salary. These are my revenues.

Employee 86

Employee Video Hiring Forecast 86