Startup Professionals Musings

JANUARY 6, 2021

For example, Mark McClain, cofounder and CEO of SailPoint Technologies , created an employee growth culture resulting in growth of forty percent a year, with more than $100 million in revenues. The company has since gone public, and is still a market leader. Plan a long-term strategy, and avoid crisis moves.

Technical Review 400

Technical Review Technical Cofounder Advisory Board Cofounder 400

Both Sides of the Table

NOVEMBER 16, 2014

But if you level up , raise capital and grow customers, revenue and staff – life changes. They are irritated because they generated a ton of leads at their trade shows, their webinars and through online acquisition and they’re tired of getting blamed for the Patel leads. Extremely talented people are ultra competitive.

CTO Hire 385

CTO Hire Entrepreneur Technical Review Leadership 385

Startup Professionals Musings

OCTOBER 30, 2020

You need a stable customer base with an automatically renewing revenue stream, such as the subscription model. This reduces the cost of customer acquisition, allows easy upgrades for service and new features, and improves customer loyalty in the face of new competitors in the market. Prioritize mergers and acquisitions early.

Merger 386

Merger Acquisition Software Review Social Media 386

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. We want money to make some acquisitions (investors would prefer to fund M&A if they know specific deals – not to encourage bad behavior. We want a strong balance sheet (um, ok.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Steve Blank

OCTOBER 15, 2019

HR processes, legal processes, financial processes, acquisition and contracting processes, security processes, product development and management processes, and types of organizational forms etc. For the contractors, anything new offers the real risk of losing a lucrative existing stream of revenue. The result is process theater.

Government 322

Government Technical Review Acquisition Metrics 322

Both Sides of the Table

JULY 17, 2018

" Revenue doesn't pay your bills, GM does  —  @msuster 2/ Founders obsess with revenue as a vanity metric. Some even grow "bad" revenue just to show growth. Payback periods on customer acquisition way more important to you in the near-term. Ultimately it matters a great deal.

Founder 242

Founder Dilution Software Review Later Stage 242

ConversionXL

OCTOBER 7, 2022

Customer acquisition cost (CAC) is an important metric for any ecommerce business. Put simply, you need a healthy customer acquisition cost for your business to succeed. It’s up to every ecommerce business to find the middle ground between investing too little in customer acquisition and spending beyond your means.

Acquisition 22

Acquisition eCommerce Cost Customer 22

Startup Professionals Musings

JUNE 26, 2020

All startups, including non-profits, need revenue to thrive, such as such as from subscriptions, retail, online, licensing, or services. They want to see revenue to share in the return. Here I recommend a 5-year projection of revenues, expenses, and funding requirements. Provide specifics on the customer business model.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Startup Professionals Musings

FEBRUARY 14, 2022

For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. Don’t forget a viable financial model of costs, margins, customer acquisition, and break-even.

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

TechEmpower

JULY 31, 2023

One way to approach that last question is to use this simple model: Customer Acquisition Cost (CAC) How will your business reach prospects? Look at different customer acquisition channels, how they are converting, and the expected lifetime value of customers acquired through those channels. What does the business do?

Metrics 260

Metrics Startup Retention Acquisition 260

Both Sides of the Table

NOVEMBER 14, 2017

How long does it take me to pay back my original customer acquisition costs? Throughout the first year we made many fixes and saw our revenue base in these markets accelerate so we felt we were ready to attack Los Angeles, amongst the most important storage markets in the country. How profitable is my product or service?

Operations 286

Operations New York City Technical Review Startup 286

Up and Running

FEBRUARY 18, 2021

Customer acquisition drives sales and profit margins and it needs to be measured and balanced together with the customers’ lifetime value (LTV). This article explains how businesses can resist one of the top startup killers known as high customer acquisition costs (CAC). We will go through 5 key strategies for lowering CAC.

Acquisition 127

Acquisition Cost Affiliate Customer 127

Startup Professionals Musings

MAY 25, 2020

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. You can kick-off your next startup. Position the company as a cash cow to fund spinoffs.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

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.

Founder 281

Founder Technical Review CTO Hire IPO 281

YoungUpstarts

AUGUST 18, 2020

While this “balance sheet” valuation of your company overlooks important value factors such as revenue and earnings potential, it is a good place to start in determining the actual material value of physical property. Look at Revenues. Another way to do this would be to look at price/earnings (P/E) data.

Balance Sheet 195

Balance Sheet Valuation Software Review .Net 195

Both Sides of the Table

SEPTEMBER 15, 2022

Should SaaS companies trade at a 24x Enterprise Value (EV) to Next Twelve Month (NTM) Revenue multiple as they did in November 2021? We drew this conclusion after a meeting we had with Morgan Stanley where they showed us historical 15 & 20 year valuation trends and we all discussed what we thought this meant.

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

View from Seed

JUNE 13, 2019

I know some of the investors in Chewy prior to the PetSmart acquisition, but I am not a shareholder nor do I intend to purchase shares in the IPO. revenue business still growing >50% YoY? Chewy now has over 10 million customers, repeat purchases by existing customers account for approximately 90% of their revenue today.

Leadership 214

Leadership .Net Revenue Aggregator 214

Steve Blank

DECEMBER 9, 2013

Is it a small business that hits $4 million in revenue in four years and $8 million in ten years? Or is it something that can grow to a size that will result in an acquisition or some liquidity event? Is it a lifestyle business while you’re keeping your other job?

Cofounder 330

Cofounder Technical Cofounder Liquidity Event Lean 330

Startup Professionals Musings

JUNE 21, 2020

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 434

Revenue Valuation Viral Retention 434

Both Sides of the Table

APRIL 26, 2016

Perhaps the most misused terms I see these days from entrepreneurs involve CAC (customer acquisition costs) and LTV (life time value) and a lack of understanding these critical components is driving many companies to premature failure. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

AUGUST 7, 2020

In the short term you need customers to find you at any price, and in the longer term you need revenue, profit, and return loyalty. You need to be constantly assessing mergers and acquisitions, as well as divestitures. Hone your process for due diligence and integrating these new elements.

Technical Review 312

Technical Review Due Diligence Merger Social Media 312

Startup Professionals Musings

JULY 1, 2020

The norm for entrepreneurs is to be optimistic on revenue projections, and miserly on funding needs. You will never seem to have the time, skills, or resources you need for that key acquisition, global expansion, or new product offering.

Entrepreneur 306

Entrepreneur Due Diligence Startup Acquisition 306

Startup Professionals Musings

MAY 15, 2019

For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. Don’t forget a viable financial model of costs, margins, customer acquisition, and break-even.

Startup 245

Startup Angel Investor Technical Review Incubator 245

ConversionXL

JULY 21, 2022

How did Outreach grow in just a few years to 50,000 monthly active users , $10 million in new bookings, and net revenue retention (NRR) of more than 140%? Apply these lessons to align your teams and drive revenue growth. NSM must: Lead to revenue; Reflect customer value; Measure progress. North star metrics must lead to revenue.

Metrics 120

Metrics Acquisition Revenue .Net 120

Both Sides of the Table

JUNE 28, 2018

While this reaction to such a valuation is understandable, to anybody who has seen the meteoric rise in consumer demand and actual revenue the valuation is much less surprising and may turn out to be quite conservative. I think it’s quite possible that Bird could be the fastest growing company to reach a billion dollars in run rate revenue.

San Francisco 256

San Francisco Valuation Los Angeles Technical Review 256

The Startup Magazine

JULY 8, 2022

These days, many businesses are adopting the freemium model as their primary strategy for customer acquisition, and it’s easy to see why. Therefore, the user base has to be more significant if you’re looking to generate worthwhile revenue that will help grow your organization.

Startup 157

Startup Technical Support Software Developers Software Development 157

Startup Professionals Musings

SEPTEMBER 12, 2014

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. You can kick-off your next startup. Position the company as a cash cow to fund spinoffs.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Steve Blank

NOVEMBER 12, 2019

Some of the speed differences are because commercial companies and academics face Darwinian competitive pressures for revenue or recognition. Existing contractors have learned how to master the arcane defense acquisition system and live with the slow decision-making and payment processes.

Government 316

Government Artificial Inteligence Silicon Valley North Korea 316

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. How can you shift focus to customer retention versus acquisition?

South Korea 334

South Korea Salary Business Model China 334

Startup Professionals Musings

FEBRUARY 25, 2023

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. You can kick-off your next startup. Position the company as a cash cow to fund spinoffs.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Both Sides of the Table

JANUARY 11, 2014

If you are early in a platform (Zynga to Facebook, AngryBirds to iOS, Maker Studios to YouTube) you catch a major marketing wave where acquiring customers and growing revenue is exponential. It’s why some companies are testing whether building applications on KIK might lead to better customers acquisition.

Technical Review 384

Technical Review Hockey Stick SEM Channel 384

Startup Professionals Musings

OCTOBER 17, 2018

If Elon Musk is an advisor to your transportation startup, that is major traction, even without a product or revenue. If you don’t have revenue, it definitely is valuable to have orders, letter of intents, value testimonials, or even calls returned and email responses. Who you know is still often more important than what you know.

Advisory Board 199

Advisory Board Technical Review Metrics Business Model 199

Startup Professionals Musings

NOVEMBER 17, 2021

Companies need the same service on partner and acquisition candidates, even vendors. On the movie production side, it’s time to start doing analyses on movie scripts, based on reaction to similar movies, to predict box office revenue and cities to hit. Customer retention with churn modeling.

Analytics 248

Analytics Retention Social Media Startup 248

The Startup Magazine

JUNE 5, 2024

These include marketing and tenant acquisition, as well as leveraging industry knowledge to attract tenants. They also assist with revenue management by analyzing market trends and optimizing rental rates. Diversify Revenue Streams Think beyond just rental fees. They typically offer a comprehensive suite of services.

Security 146

Security Technical Review Operations Revenue 146

ConversionXL

FEBRUARY 3, 2022

In this article, you’ll learn how to build a marketing growth strategy to increase your market penetration, market share, and revenue. Acquisitions can quickly increase your market share and bring in new customers. Building new revenue streams in an untapped channel, like content marketing or email marketing. Acquisitions.

Marketing 115

Marketing Framework Metrics Channel 115

ReadWriteStart

MARCH 8, 2021

They want to snowball their customer acquisition, attracting thousands of new people to the brand, and reach diverse new audiences in new locations. They want to open new offices, generate more revenue, and ultimately, secure higher profitability. . And the revenue from your existing customers alone may not be enough to cut it. .

Startup 127

Startup Retention Acquisition Agile 127

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Usually that’s the point in the meeting where a VC realizes that this meeting isn’t going to go very well.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247