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If you’re in the process of starting a business or writing a business plan document, you’ll have heard the phrase “balancesheet” mentioned, or maybe you’ve seen one in a sample business plan. Now that we’ve had a general overview of the balancesheet, let’s take a deeper look at the information a balancesheet should include.
The company also occasionally invests in startups out of the balancesheet (i.e. AWS Marketplace Startup Program – the ‘app store’ for B2B startups who are interested to sell their product to AWS customers. Below are the Amazon and AWS outreach programs in no particular order.
Dedicated to early-stage companies, there were over 15 categories to choose from in the 2018 edition, including, inter alia: B2B Business of the Year, Crowdfunded Business of the Year and Export Business of the Year. If you are looking for a little more choice, it might be worth applying for the Startups Awards. Read the Rubric.
For them, the key thing to measure is if the product is serving users’ needs in such a way that they will continue to use it (and ideally, find life without it hard to imagine). Josh Gebhardt, CEO, MetricStory , observes that horizontal spread across and within an organization’s functional siloes is a good metric for B2B products.
Even B2B enterprises are just facilitating actions that end up with consumer demand. If they hadn’t done the buybacks, they would have a war chest of over a billion dollars in their balancesheet for moments like these. If corporations are designed to protect people, it might be time we cut out the middle man.
There seems to be a growing realization – especially in the B2B SaaS market, but also across others – that many of the companies that have been funded and have seen reasonable growth are really products, not companies. Hopefully you took the opportunity in the past few quarters to shore up your balancesheet.
B2B / Enterprise Sales: Salesforce. I absolutely hate how not data driven most B2B selling is. Mobile is massively undervalued by most B2B companies (including SF), hence the acquisition emphasis there. For a B2B company there are so many things we can measure. And, we can do so much for them!
SaaS Startup BalanceSheets: How Much Cash & How Much Debt to Raise – crowdspring.co/XyDAJ3. How to Use Social Media to Drive Traffic for B2B Companies – crowdspring.co/1nPz9An. Activate or Die: 10+ Ways You Can Improve Your User Activation for SaaS – Part 2 | 500 Startups Blog – crowdspring.co/1rgMYgu.
Imagine there is a hot, bottoms-up $60M revenue B2B software company raising at a $4B valuation. In the world of private tech companies, imagine two $20 million revenue companies that are largely identical: same revenue scale, same current and long-term gross margin and burn profile, same cash and debt on the balancesheet, same market.
Topics we covered: B2B Companies You haven’t seen the full extent to how the correction is going to affect you. A strong balancesheet will matter in the years ahead. if you listen you’ll pick up much more than my quick notes below). I spoke about that more in this deck that I wrote for the SaaStr conference in early March 2020.
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