Remove Bankruptcy Remove Cost Remove Metrics Remove Revenue
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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. Customer acquisition cost.

Metrics 150
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How to Wisely Utilize Debt for Business Expansion

The Startup Magazine

Poorly managed debt can lead to financial strain, decreased creditworthiness, and even bankruptcy. Factors to Consider Before Taking on Debt The debt service coverage ratio (DSCR) is a financial metric lenders use to assess a business’s ability to cover its debt obligations.

Finance 144
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7 Ways to Improve the Financial Management of Your Business

The Startup Magazine

Business owners must deeply understand their company’s financial health, track their expenses and revenues, and adjust accordingly. Adopting best practices and implementing effective tools and strategies can streamline your financial processes, reduce costs, and improve your bottom line. 4. Monitor finances.

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Facebook Advertising / Marketing: Best Metrics, ROI, Business Value

Occam's Razor

FBe's recommendation was (paraphrasing a 35 min talk): Don't invent new metrics, use online versions of Reach and GRPs to measure success. Compute ROI: (cost of Facebook campaigns + salary of people running campaigns + agency creative costs) vs. profit from incremental product sales. Metrics are a problem.

Metrics 165
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. “Too Of the Inc. 5000 companies, only 6.5% raised from angels.

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From Fat to Fit: Startups Must Navigate Back to Fundamentals to Achieve Long-term Success 

The Startup Magazine

Despite securing massive funding, WeWork spiraled into bankruptcy after a debt-driven expansion, exacerbated by a pandemic-induced decline in office space demand. Their net revenue retention (NRR) soared to 150%, a testament to their product’s value to existing customers.

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Target Future Customers Using Financial Metrics

The Startup Magazine

Failing to look at customer and partner financial data can end up costing you big time. This could include things like bankruptcies, judgments and liens, and should be looked into very carefully. For example, look closely at their revenue and stability. Just look at the example of Hewlett-Packard. Payment Disputes.

Metrics 62