Steve Blank

FEBRUARY 22, 2010

Startups that are searching for a business model need to keep score differently than large companies that are executing a known business model. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. Here’s why. Managing the Business.

Balance Sheet 308

Balance Sheet Startup Burn Rate Metrics 308

Steve Blank

MARCH 4, 2014

In the last few years we’ve recognized that a startup is not a smaller version of a large company. We’re now learning that companies are not larger versions of startups. But paradoxically, in spite of all their seemingly endless resources, innovation inside of an existing company is much harder than inside a startup.

IRR 335

IRR Startup Business Model Agile 335

The Startup Magazine

SEPTEMBER 4, 2020

Each of these metrics is central to your business success. Balance Sheet. Balance sheets show your company’s liabilities, assets, and amounts held by shareholders. . The following are standard terms you find in a balance sheet and what they mean. . Revenue : Amounts of money your business brings in.

Balance Sheet 92

Balance Sheet Revenue Equity Operations 92

David Teten

AUGUST 6, 2015

Datavore is a New York startup which is working to improve on the functionality of existing tools like Microsoft Excel by creating a visual display of the calculations comprising complex analyses such as a financial model. A model that shows Beginning Cash + Revenue – Expenses = Ending Cash doesn’t tell the whole story.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Up and Running

NOVEMBER 19, 2012

A financial plan with a Sales Forecast, Profit & Loss , Cash Flow Forecast , and Balance Sheet. Performance tracking to compare ACTUAL financial results with your planned financials and other key metrics. You also want to think about some other metrics to forecast, and then measure against actual results.

Lean 83

Lean Small Business Forecast Technical Review 83

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Milestones and metrics that you’ll need to hit to be viable. Milestones and metrics. For metrics , decide which numbers to check regularly to track your company’s health. Do they self-pay or use insurance?

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Steve Blank

JUNE 23, 2016

Disruptive innovations are coming from startups – Telsa for automobiles, Uber for taxis, Airbnb for hotel rentals, Netflix for video rentals and Facebook for media. As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Up and Running

MAY 30, 2022

And it’s not just for startups. An often overlooked purpose of a business plan is as a tool to define success metrics. This includes financial statements such as your profit and loss, cash flow, balance sheet, and sales forecast. Determines financial needs and revenue models.

Business Plan 150

Business Plan Balance Sheet Revenue Metrics 150

Steve Blank

MAY 14, 2012

magazine is publishing a 12-part series of excerpts from The Startup Owner’s Manual , the new step-by-step “how to” guide for startups. Financial progress is tracked using metrics like income statement, balance sheet, and cash flow. Confusing traditional job titles with a startup’s needs.

Balance Sheet 335

Balance Sheet Business Model Customer Development Metrics 335

David Teten

NOVEMBER 10, 2011

(This is the second of three blog posts on financial models for startups. We started with a sanitized version of a financial model I had developed for startups I have run. This is designed to be a simple end-to-end financial model for an early-stage startup. Projecting cash flows for a startup is a guessing game.

Balance Sheet 154

Balance Sheet Startup Equity Valuation 154

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. The buyer is shopping for equity in startups and the seller is looking for cash in exchange for equity and shared governing control of his or her company.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Feld Thoughts

SEPTEMBER 9, 2015

Some will demonstrate strategically justifiable metrics and have fantastic ‘up round’ exits; others may see liquidation preferences kick in which will negatively impact founders and employees; others may fulfill the adage “IPO is the new down round” , which has been the case for more than half of the public companies on our list. “We

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

ConversionXL

OCTOBER 7, 2022

Customer acquisition cost (CAC) is an important metric for any ecommerce business. According to Startup Talky , here are some average CACs by industry. To measure and compare your CAC over time, create a simple cost sheet to track sales and marketing spending. What is the average customer acquisition cost? customer retention ).

Acquisition 22

Acquisition eCommerce Cost Customer 22

VC Adventure

MARCH 19, 2020

I had a few things on my mind related to the startup environment right now as it relates to Covid-19 and the massive market disruption that we’re in the middle of. With that, here are some general observations on the market as well as a few things specific to startup companies (relevant across stages). More, not less.

Balance Sheet 69

Balance Sheet Portfolio Stock Early Stage 69

Feld Thoughts

AUGUST 12, 2011

Revenues and costs should both be based off of a robust set of assumptions. Tie the P&L forecast to the Balance Sheet and Cash Flow Statement and generate snapshots of what the Financial Statements will look like each year for the next 5 years. Build a financial model that forecasts the P&L. historical data).

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” A multiple is a company value divided by a metric. cash flows beyond that forecast period).

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

VC Adventure

FEBRUARY 10, 2016

There’s an increased focus on key metrics – especially those core metrics that drive the spend/growth curve such as LTV/CAC and months to pay back CAC. In the public markets public SaaS valuations (EV/Revenue) are down 33% since January and 66% since their high in January 2014. But they do, and they are right now.

Balance Sheet 48

Balance Sheet Valuation Metrics B2B 48

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. 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. Startup costs.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

Up and Running

MAY 1, 2014

Milestones and Metrics. Milestones and Metrics. While the Milestones and Metrics chapter of your business plan may not be long, it’s critical that you take the time to look forward and schedule the next critical steps for your business. Read more ». Marketing and Sales Plan. How are you going to reach your target market?

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

The Startup Magazine

JUNE 27, 2024

Leverage KPIs and Benchmarks for Insight Key performance indicators (KPIs) are the metrics that track your progress towards specific financial goals. Examine your income statement periodically to spot patterns in rising revenue or falling expenses. Conversely, weaknesses like declining revenue or increasing debt will become apparent.

Balance Sheet 119

Balance Sheet Equity .Net Forecast 119

Up and Running

OCTOBER 3, 2018

Consider this example: Pleasant Acres Real Estate, LLC (PARE) is a startup company located in El Paso, Texas. Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Milestones and metrics that you’ll need to hit to be viable. Milestones and metrics. Be specific.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

Up and Running

FEBRUARY 17, 2016

In part one of this brewery startup guide, we’ll look at planning, location, equipment, and relationships. No matter its size or age, every brewery was once a startup. Dan Hughes offers this advice for fellow startup breweries: 1. In part two, we’ll discuss finances, insurance, and regulations for breweries.

Oregon 60

Oregon Jordan SBA Cofounder 60

Both Sides of the Table

MARCH 3, 2013

Let me start by saying that Clayton is one of the most influential people on my thoughts about markets that led to both the concept behind my first startup and my main theses in investing. Startup Grind was a truly awesome conference and Derek the consumate host. ” No royalty paid until there is revenue.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Up and Running

MAY 15, 2019

No matter its size or age, every brewery was once a startup. Most small businesses and startups that are looking to grow— hire a new employee , or buy a new piece of equipment, or open a new location —need to think hard about cash flow, or making sure they have enough money in the bank to meet payroll and other financial obligations.

Oregon 24

Oregon Jordan Software Review Distribution 24

Up and Running

MARCH 11, 2015

You should have a good solid executive summary, you should have full financials, and that means a projected balance sheet, P&L and cash flow. Now you’re going to move into your revenue model. Okay, so now your revenue model, so this is—. This is, are you a brick and mortar? You’re muted.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

Startup Lessons Learned

JUNE 9, 2020

A complete collapse of revenue that simultaneously affects your employees and your customers, your partners, your investors, everyone all at once and all the news is bad. People, not just metrics. And what I mean by that is, almost every metric, every graph, every number, is a person. Eric Ries : Metrics are people too.

Silicon Valley 60

Silicon Valley Hosting Cofounder Employee 60

Feld Thoughts

FEBRUARY 7, 2012

Ultimately, all the numbers translate into three financial statements – the P&L, Balance Sheet, and Cash Flow Statement. While these numbers are sacrosanct in the accounting and finance professions, they are lagging indicators for most startup companies. Or daily revenue. This rule of three applies.

Balance Sheet 158

Balance Sheet Revenue Metrics Leadership 158

Steve Blank

MARCH 26, 2019

This new class aimed to mimic the uncertainty all startups face as they search for a business model while imparting an understanding of all the components of a business model, not just how to give a pitch or a demo. (It’s And after 9 years of classes, students still find that this class is the closest thing to being in a real startup.

Lean 257

Lean Business Model Balance Sheet Video 257

Reid Hoffman

JUNE 8, 2021

As I’m sure most would agree, Airbnb is one of the most iconic startups to have been formed in the world. The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. We’ve kind of designed the kind of growth that we want.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Reid Hoffman

JUNE 8, 2021

As I’m sure most would agree, Airbnb is one of the most iconic startups to have been formed in the world. The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. We’ve kind of designed the kind of growth that we want.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36