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5 Keys To A Viable Spending Rate And Cash Management

Startup Professionals Musings

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month.

Burn Rate 258
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The End Of “Build It Yourself” Software

YoungUpstarts

Today in the tech industry, we’re entering an era of Levittown software, and the change is important for all businesses. The companies that ‘rent’ these products on a SaaS basis enjoy the highest standard in software without the costs, risks and tech quandaries of in-house development. The Death of In-House Payment Gateways.

Software 248
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5 Ways To Conserve Investor Cash And Ensure Survival

Startup Professionals Musings

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month.

Burn Rate 310
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Brittleness comes from “One Thing”

A Smart Bear: Startups and Marketing for Geeks

We’re tired of hearing how small software companies usually fail. But what about the companies that die even though they did sell some copies of software, and where the early team isn’t dysfunctional? The company landed one big customer representing 80% of total revenue, but that customer canceled.

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Business Valuation: Determining The Worth Of A Company

YoungUpstarts

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
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A heartbreaking story about time and money.

Berkonomics

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. How about young or pre-revenue companies?

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5 Keys To Minimizing The Burn Rate For Your Startup

Startup Professionals Musings

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month.

Burn Rate 223