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

Both Sides of the Table

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. Poorly calculated LTVs can become BVs (bankruptcy values). Customer acquisition cost. The first input is CAC.

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. When considering debt options, comparing interest rates, repayment terms, and fees from multiple lenders is crucial to finding the most cost-effective solution.

Finance 122
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Organization That Failed to Innovate – Avoid Their Fate

ReadWriteStart

While employees are often inspired by success stories and case studies of triumphant innovation tales of large companies, the cost of not innovating is often overlooked. Rental subscriptions and late fees were the main drivers of revenue for the organization. Blockbuster missed multiple opportunities to innovate.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78
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Tripwire Marketing: From Bankruptcy to Over 1 Million Dollars in Profits in One Year

ConversionXL

In 2015, 9-figure apparel retailer Karmaloop.com filed for bankruptcy. The CEO cut costs. That latter term is used to describe an initial offer that generates enough revenue to offset the cost of acquiring a customer. Marketing where you don’t have to is called a subsidy cost. They brought me in as CMO.

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How To Cut Costs In Your Business, Without Hurting It

Mike Michalowicz

You fix your bottom line by increasing revenue or cutting costs or both. You can’t guarantee that you will increase revenue by next month, but you can guarantee that your rent will be due. We cling to our expenses, believing we will need all those costs the moment we land that big client. Costs pile up predictably.

Cost 151
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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.