David Teten

JANUARY 19, 2021

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. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

DECEMBER 27, 2011

If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

Startup 418

Startup Revenue Technical Review Flash 418

Startup Professionals Musings

MARCH 22, 2023

Jeff Bezos now manages Amazon, which encompasses over 40 subsidiaries and operates worldwide. Rather than a focus on salary and perks, your focus is on customers, revenue, and operations. Use metrics and data to quantify progress and return. Your personal goal is to succeed in business.

Metrics 279

Metrics Startup Agile Salary 279

David Teten

DECEMBER 16, 2015

I review a lot of board decks with a beautifully hand-crafted page with metrics for the company. Good metrics are comparable across industries; comparative ; readily understandable; and help drive decisions. Comparative means that you can compare a metric across time periods, groups of users, or competitors. So how do you do it?

Metrics 60

Metrics Analytics Balance Sheet .Net 60

Hearpreneur

JANUARY 19, 2022

Some businesses have had to change structures and make operational changes to thrive and survive. Although our in-person services were put on hold, our eCommerce products, including virtual services tripled in revenue. Due to that, we decided to widen our client base to increase our revenue. 11- Paying attention to metrics.

Entrepreneur 119

Entrepreneur Metrics Technical Review North America 119

Startup Professionals Musings

NOVEMBER 14, 2012

What I’m talking about here is a level of discipline and skill necessary to collect and analyze the relevant business data, known as metrics. 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.

Metrics 266

Metrics Retention Acquisition Salary 266

David Teten

NOVEMBER 26, 2019

Instead of budget approvals, monitor key metrics and give managers more flexibility. The next most important set of metrics are sales by category; working capital (cash and other current assets, less current liabilities); EBITA; and gross margin. Traditional budgets can be destructive and a huge waste of time.

Agile 60

Agile Management Forecast Silicon Valley 60

Steve Blank

MARCH 17, 2020

Here are a few thoughts about operating in uncertainty in a pandemic. 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. And what’s in my lifeboat?”.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Duct Tape Marketing

JUNE 7, 2023

Over the past two decades, she has led large revenue-producing divisions at businesses ranging from start-ups to the Fortune 500. Tiffani emphasizes the need for a balanced approach to company strategy that involves all stakeholders, including IT, Marketing, Sales, Operations, and HR. with Tiffani Bova. That's right.

Employee 75

Employee Technical Review Advisory Board Sales 75

View from Seed

NOVEMBER 18, 2014

Higher founder salaries, which some investors view as a sign of being less hungry or aggressive, did not affect how quickly a startup raised its Series A. 4 Operating Philosophies Affecting Series A Raises. Generate Real Revenue. Another approach to raise Series A is to drive meaningful revenue. They are: 1.

Syndicate 333

Syndicate Syndication Seed Stage Startup 333

OnlyOnce

AUGUST 3, 2023

A third sign that it might be time to hire a People officer can happen when your board asks you what your talent strategy is with respect to improving diversity, retention, and engagement metrics, while simultaneously decreasing average employee salary, and you don’t have a great answer. But those things won’t help you scale.

Hiring 62

Hiring Metrics Leadership Early Stage 62

YoungUpstarts

APRIL 5, 2019

But flattering media attention too easily shifts focus away from the metrics that matter. Call me old school, but I believe in metrics like growth, revenue, and profit. All other metrics are irrelevant. Growth rates don’t pay employee salaries. Grant writing isn’t especially “cool,” but what’s cooler than profit?

Valuation 162

Valuation Cofounder Metrics SEC 162

ConversionXL

SEPTEMBER 15, 2020

It’s a fundamental way of operating your business. Do what’s best for the customer—even if it doesn’t grow revenue. A few of the features Monzo built, however, go against revenue generation in favor of doing what’s best for customers. It’s not the only example of Monzo serving customers at the expense of potential revenue.

Customer 85

Customer Community Revenue Software Review 85

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. of revenue, force-feeding sales pipelines with an unprofitable product. SaaS companies earn their revenue over time. time to earn back the revenue to cover all your customer acquisition expenses) 75% annual retention.

Business Model 335

Business Model .Net Revenue IPO 335

Seeing Both Sides

JULY 11, 2013

If the customer is a recurring customer, then they are more valuable and a lower quota might be tolerated, although a separate group of account reps are often accountable and paid commissions for the renewal revenue. Their quotas may be as low as $400-500K, but their salary at target might be only $80-100K. 3) Developer Driven Sales.

Sales 50

Sales Technical Review Software Review B2B 50

ConversionXL

MARCH 3, 2016

Once you’re sure your analytics are healthy, you can begin trying to understand the five key elements of custom reports: users, sessions, hits, metrics and dimensions. Dimensions: Every report is made up of dimensions and metrics. Metrics: Every report is made up of dimensions and metrics.

Analytics 48

Analytics Customer PPC Metrics 48

Board Effect

OCTOBER 5, 2020

Nonprofit boards need to find ways to offer competitive executive salaries because effective leadership is necessary to reach their goals and serve their communities. Since nonprofits obviously operate in a different space, they’ve made slow moves toward revamping their executive compensation packages. Type of Nonprofit Organization.

New York City 64

New York City Salary Government Warrant 64

Hippoland

OCTOBER 18, 2018

I would raise more than $250k if I had a company that: 1) Was growing 30%+ MoM in sales and my operations could not keep up to fulfill those sales I’ve noticed for operationally-heavier companies (i.e. So you are taking a gamble that with more cash, you can get to series B metrics. But, I think that’s false.

Bootstrapping 90

Bootstrapping Cap Table Salary .Net 90

YoungUpstarts

JUNE 16, 2020

This method branches off into two schools of thought: Past Earning Capitalization – this suggests that the expected revenue in the future can be predicted by a record of the company’s past earnings, once undue revenue or expenses are accounted for and multiplies the projected earnings by a capitalization factor.

Valuation 162

Valuation CPA Software Review Revenue 162

ConversionXL

MAY 27, 2022

The responsibilities from this DGM role at SaaS company Datto show how embedded demand gen managers are in marketing: • “Build strong, integrated marketing programs using a mix of content marketing, digital marketing, email marketing, and webinars to drive new business opportunities and revenue. How does your DGM operate?

Demand 95

Demand Management B2B Campaign 95

Altgate

DECEMBER 17, 2009

it's up to the Board or CEO) One or more financial metrics Balanced scorecard For very early stage startups (e.g. pre-revenue and maybe even pre-product), I recommend a discretionary plan, particularly when you're dealing with annual plans.  You probably have operating budgets for each department.

Venture Capital 47

Venture Capital Metrics Startup Software Review 47

Hippoland

OCTOBER 18, 2018

I would raise more than $250k if I had a company that: 1) Was growing 30%+ MoM in sales and my operations could not keep up to fulfill those sales I’ve noticed for operationally-heavier companies (i.e. So you are taking a gamble that with more cash, you can get to series B metrics. But, I think that’s false.

Bootstrapping 48

Bootstrapping Cap Table Salary .Net 48

The Equity Kicker

OCTOBER 8, 2012

According to Paul most startups should look at revenue growth, but active users is a good proxy for companies that aren’t charging their customers (yet). In practice most businesses are cash constrained and have to optimise the trade off between investing in growth and running out of cash – so they focus on growth AND operational efficiency.

Silicon Valley 149

Silicon Valley IPO eCommerce Valuation 149

Up and Running

JULY 31, 2014

Think about big categories: salary, marketing, sales, rent, utilities. In terms of calculating customer acquisition cost, our question is, should they include sales, salary, sales commission in that cost or other sort of overhead. Here’s some other metrics that you can look at. It’s the same thing with expenses. Cash is king.

Software Review 74

Software Review Sales Acquisition Small Business 74

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. With this decline, the average EV/08 rev.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

ReadWriteStart

JUNE 29, 2020

People are trapped at home, they are not getting a salary, and they are afraid to touch another person because no one knows who is and isn’t infected with the virus. It means relying on your own savings and revenue to operate and expand.”. Year-on-year growth metrics in unique site traffic is 7.8

Bootstrapping 85

Bootstrapping Global Startup Hungary 85

Up and Running

JULY 23, 2018

Since the company was bootstrapped, they spent frugally, lived without any salary for months, and worked hard to make it a success. Break-even points are important —that’s when most business owners start picking a salary or the company starts seeing positive cash flow. The other, just out of college, had taken money from his family.

Salary 72

Salary San Francisco India Bootstrapping 72

Ben's Blog

JANUARY 19, 2011

Business— when a company is acquired for its actual business (revenue and earnings). The acquirer values the entire operation (product, sales, and marketing) not just the people, technology, or products. These deals are typically valued (at least in part) by their financial metrics and can be extremely large (e.g.

Acquisition 78

Acquisition Technical Review Intellectual Property Silicon Valley 78

Up and Running

MAY 28, 2015

We’re looking at our lean business planning is about strategy, tactics, concrete specifics including milestones, metrics, tasks and schedule, and essential numbers to run a business, all of which lead to managing cash flow. You need metrics because we’re human. It is a very difficult proposition. Are we recruiting?

Lean 60

Lean Business Plan Video Software Review 60

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue. The founders.

Founder 245

Founder Technical Review CTO Hire IPO 245

K9 Ventures

APRIL 9, 2014

Yes, almost everyone who was operating as a Super Angel, went on to raise a venture fund. Threshold for an IPO is higher Ten years ago, if you had $20M in revenue you were ready to go public. If you have <$100M in revenue, you’re probably going to stay private. Now what are the implications of all this?

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

Up and Running

NOVEMBER 25, 2014

Allow employees, officers, and/or directors to privately or financially benefit from the nonprofit (this doesn’t include reasonable salaries, however). The keyword is “reasonable,” and the IRS will compare your salaries to similar nonprofits in similar circumstances to make sure. Know Your Numbers, Track Your Metrics.

Salary 117

Salary Government Employee Security 117

OnlyOnce

SEPTEMBER 6, 2010

Making sure there’s enough cash in the bank keeps the lights on…but managing a handful of financial metrics on concert with each other is what really makes the engine hum. Looking at recognized revenue when you really need to focus on bookings is shortsighted. A lot of cash with a lot of debt is a poor position to be in.

Pay to Play 134

Pay to Play Salary Leadership Metrics 134

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. Operations. Financial summary : Project your revenue for the first few years. Companies that become a big subset of your revenue are likely strategic alliances, though, which is a later section.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

This is going to be BIG.

MARCH 30, 2015

Because companies today have way more revenues than the companies that went public or had huge up rounds back then. And, they aren''t necessarily revenues from other dot coms. They''re consumer, SMB and enterprise revenues--maybe not enough to justify their valuation, but much much further from zero than companies in the past.

Hockey Stick 60

Hockey Stick Valuation Startup Maryland 60

Occam's Razor

JULY 6, 2015

A thing three that shares optimally aligned See-Think-Do-Care metrics! We can entertain them, inform them, and provide utility (AND fulfill their commercial needs – hurray revenue!!!). Those that have long-term revenue resulting engagements with us. But, let's start with the core intent of my post. Thing One.

Marketing 60

Marketing Framework Metrics Audience 60

Austin Startup

SEPTEMBER 17, 2017

You’ll want to get cozy with the numbers all over again based on some history and make decisions on operating spend and on financing strategies. If the founders aren’t drawing market salaries, then true profitability may be overstated. This is a point where your really must be honest with yourself.

Valuation 48

Valuation Forecast Seed Money Business Model 48