Remove .Net Remove Cost Remove Operations
article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

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. ” If you’re not profitable you’re purely a cost center to them. Cost of Goods Sold (COGS) =. Operating Costs.

Startup 418
article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

Burn Rate 383
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

Airbnb convinced travelers to part with 100% of their booking cost up front and then they pay out the required amount to hosts when the stay actually occurs. But even with this profitable Q3, on a trailing twelve months (TTM) basis Airbnb has a GAAP net loss of >$1 billion. Expedia 8%. Booking Holdings 35%. Hilton 17%. Marriott 9%.

article thumbnail

Are Business Plans Still Necessary?

Both Sides of the Table

In all of these new product and cost-focused new trends, a big problem has emerged that all of these movements have not addressed. Let’s start with how much value you think you’ll create for your customer if they use your product in terms of hours saved, costs avoided, extra sales, better conversion rates or whatever.

article thumbnail

Better Solutions for Better Operational Efficiency in Construction

The Startup Magazine

Operational efficiency mentioned in the text today focuses on the ability of the company to deliver the highest quality goods in a timely manner and in the most cost-effective way possible. There are various strategies that can be used at the construction site to boost operational efficiency in construction.

article thumbnail

The Shift from FOMO to FOLD in Early Stage Investing

View from Seed

This is unfortunately a net negative for the ecosystem, as it will be tougher for first time founders and underrepresented minorities to get capital in this environment. They will be diligent, but move purposefully and relatively quickly compares to firms that are operating under the Fear Of Looking Dumb.

article thumbnail

Chewy S-1: Category Leadership + Conveyor Belt Into Consumers’ Homes

View from Seed

The first is most salient, as it tells us how much revenue Chewy generates from a particular cohort as it ages… it basically nets out effects of some customers dropping out with those that stick around buying more stuff. Annual Net Sales By Customer Cohort. Chewy is unprofitable, on both a net income and EBITDA basis.