Remove Bankruptcy Remove Cost Remove Sales
article thumbnail

How To Prepare Your New Venture For Investor Scrutiny

Startup Professionals Musings

Sales and distribution channel activity will be analyzed, as well as cost of customer acquisition, to make an independent assessment of your financial projections. A smart investor will take an independent final reading in the market on barriers to entry, active competition, demographics, and price sensitivity. Marty Zwilling.

article thumbnail

Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

= profitable and companies like Amazon who chose to focus on growth > profitability were not losing money on each book sale (ie they were gross margin positive). Poorly calculated LTVs can become BVs (bankruptcy values). CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition.

Metrics 150
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

4 Keys To A Successful Integrity Check With Investors

Startup Professionals Musings

Sales and distribution channel activity will be analyzed, as well as cost of customer acquisition, to make an independent assessment of your financial projections. A smart investor will take an independent final reading in the market on barriers to entry, active competition, demographics, and price sensitivity. Marty Zwilling

article thumbnail

Bending over: How to sell to large companies

A Smart Bear: Startups and Marketing for Geeks

Instead of making a few dollars per sale and hoping for thousands of sales, you sell to only a few customers, and charge much higher rates. The license agreement's primary purpose, then, is to get past the customer's legal team quickly, because they stand between you and a sale. You set up the escrow agent and bear all costs."

article thumbnail

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. We cling to our expenses, believing we will need all those costs the moment we land that big client. Costs pile up predictably. Sales don’t. Rent, for example, is a static and recurring cost. In other words, bankruptcy.

Cost 151
article thumbnail

Creating the Next Silicon Valley – The Chilean Experiment

Steve Blank

The largest company, the state-run Chilean National Copper Corp CODELCO, has $23 billion in sales. Perhaps because the cost of a public failure is so high in Chile. Partially due to a lack of bankruptcy or commercial courts, the bankruptcy process in Chile is draconian. Chile produces 35% of the world’s mined cooper.)

article thumbnail

What Angel Investing & Florida Condos Have in Common

Both Sides of the Table

It costs less money to start companies so the world should have way more startups.&# I’ve heard the “world is different&# argument in every bubble I’ve ever seen. This is the time it takes for a bankruptcy or asset sale to occur. But all of this increased company creation has to go somewhere.

Florida 299