Startup Professionals Musings

MARCH 25, 2010

Your “burn rate” or net cash flow out is usually the single most important survival parameter to a startup. Just the process of doing financial projections allows you to see areas of strength and weakness in your proposed business model, thus enabling you to make critical adjustments sooner. Cash flow is king.

Forecast 151

Forecast Startup Burn Rate .Net 151

Steve Blank

NOVEMBER 18, 2010

A business plan has a set of assumptions (who’s the customer, what’s the price, what’s the channel, what are the product features that matter, etc.) that make up a business model. Yet by first customer ship most of the business model hasn’t been validated or tested. Pivots Versus Crises. Pivots Versus Crises.

Burn Rate 252

Burn Rate Management Business Model Customer Development 252

Up and Running

APRIL 6, 2020

This can be a daunting task, but the best place to start is understanding and calculating your cash burn rate and your cash runway. How do you calculate the burn rate? You’ll also have variable expenses such as salaries, travel, supplies, and other services you use to run your business. You have positive cash flow.

Burn Rate 100

Burn Rate Forecast SBA Cash Position 100

Tim Keane

DECEMBER 14, 2009

  A low burn rate is a pearl of great price.    It provides lots of options that high burn rates take away.    A low burn rate is a pearl of great price.    It provides lots of options that high burn rates take away.    Absolutely.

Burn Rate 60

Burn Rate Angel Groups Seed Stage Startup 60

Up and Running

APRIL 30, 2020

Each scenario combines the key numbers in the hypothetical case and explores the impact on the bottom line, and helps you define your cash burn rate and runway. Simply put it’s a better method of accurately looking forward and business owners know better than mathematicians.

Forecast 120

Forecast Balance Sheet Burn Rate Software Review 120

YoungUpstarts

MAY 12, 2020

Whether or not the pandemic ends within a month or a year, small business owners need to be ready to buckle down, reassess, and even make changes to their business strategy in order to weather the storm (and beyond). Here are seven best pieces of advice for anyone running their own business right now.

Burn Rate 264

Burn Rate Bandwidth Lean Business Model 264

Steve Blank

JUNE 1, 2011

Reinventing the board meeting may offer venture-backed startups a more efficient, productive way to direct and measure their search for a profitable business model. Yet boards of large companies exist to monitor efficient strategy and execution of a known business model. The Wrong Discussion s. That’s very, very wrong.

Silicon Valley 300

Silicon Valley Business Model Venture Capital Balance Sheet 300

Steve Blank

AUGUST 27, 2012

Tossing their agile development process and at times their entire business model in the air, the company would go into fire-drill mode and engineering would start working on whatever his latest insight was. ” “A pivot is a substantive change to one or more of components to your business model.

Founder 323

Founder Cofounder Advisory Board Burn Rate 323

Steve Blank

JUNE 1, 2011

Reinventing the board meeting may offer venture-backed startups a more efficient, productive way to direct and measure their search for a profitable business model. Yet boards of large companies exist to monitor efficient strategy and execution of a known business model. The Wrong Discussion s. That’s very, very wrong.

Silicon Valley 273

Silicon Valley Business Model Venture Capital Balance Sheet 273

Up and Running

APRIL 27, 2020

There’s a great amount of uncertainty, people losing their jobs, and a direct hit on cash flows that can place businesses in dire straights. Current businesses are finding ways to pivot their business models, revisiting their budgets, and developing new forecasts to minimize their burn rate and maximize their available cash runway.

Software Review 113

Software Review Lean Forecast Business Plan 113

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Most existing investors (those still in business) hoarded their money and stopped doing follow-on rounds until the rubble had cleared.

Cram Down 417

Cram Down Founder Venture Capital Recapitalization 417

Startup Professionals Musings

AUGUST 27, 2012

Investors like $1B markets with double-digit growth rates. Business model. Show breakeven point, burn rate, and growth assumptions. Define the characteristics of the overall industry, market forces, market dynamics, and customer landscape. Explain how you will make money and who pays you (real customer).

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

DECEMBER 15, 2014

At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

Steve Blank

FEBRUARY 13, 2024

In addition, they’ve created an entirely new $85+ billion subscription business model; the App Store, iTunes, Apple Care, Apple Pay, Apple Cash, Apple Arcade, Apple Music, Apple TV. It’s hard to remember, but the first version of these products launched with serious limitations that follow-on versions remedied.

Search 302

Search Marketing Forecast Burn Rate 302

Startup Professionals Musings

MAY 19, 2010

Investors like $1B markets with double-digit growth rates. Business model. Show breakeven point, burn rate, and growth assumptions. Define the characteristics of the overall industry, market forces, market dynamics, and customer landscape. Use data from industry experts like Forrester or Gartner for credibility.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Startup Professionals Musings

JUNE 28, 2013

At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

Startup Professionals Musings

JUNE 10, 2011

Investors like $1B markets with double-digit growth rates. Business model. Show breakeven point, burn rate, and growth assumptions. Define the characteristics of the overall industry, market forces, market dynamics, and customer landscape. Explain how you will make money and who pays you (real customer).

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Up and Running

SEPTEMBER 17, 2014

After all, a sustainable business model requires repeat customers! This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

Gust

DECEMBER 7, 2014

At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

philipsmith.typepad.com

SEPTEMBER 24, 2011

a year burn rate and your equity is worthless due to numerous recapitalizations and bridge loans from investors then either you don't get it or I'm stupid to do it. New Business Models. Tech Business Environment. The second example came along just this morning. Fundraising. Getting going. Globalization.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

abovethecrowd.com

FEBRUARY 24, 2015

As these late-stage private companies digest these large fund raises, they are pushing profitability further and further into the future, as well as the proof that their business model actually works. If you want to know if the business model truly hunts, you must pay careful attention. Consider the case of Fab.com.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

Professor VC

NOVEMBER 14, 2011

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1). Survey says VC's invest on Gut Instinct. ► July. (1). ► May. (1).

SEC 54

SEC San Jose Angel Investor Accredited Investor 54

Gust

AUGUST 19, 2012

Investors like $1B markets with double-digit growth rates. Business model. Show breakeven point, burn rate, and growth assumptions. Define the characteristics of the overall industry, market forces, market dynamics, and customer landscape. Explain how you will make money and who pays you (real customer).

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Professor VC

JANUARY 27, 2011

There are so many unknowns at this stage and the only known is that the business model is going to change at least once, or in the current most overused term in the Silicon Valley, there will be a "pivot". The written style is very prompt and the highly practical manners. work at home. May 1, 2011 10:32 PM. ► October. (1).

Technical Review 31

Technical Review Due Diligence Silicon Valley San Jose 31

VC Cafe

JUNE 6, 2024

Benchmark: Serena Capital advises B2B SaaS startups to target a gross margin of 80% or higher to demonstrate the scalability and profitability of their business model. Burn Rate Definition: Burn rate is the rate at which a startup is spending its capital to finance operations before generating positive cash flow.

B2B 97

B2B Burn Rate Generative AI Retention 97

Startup Professionals Musings

AUGUST 7, 2015

How the solution and business model work to fund the business. Investors will impatiently expect a winning business model, customer segment definitions and volume projections. Investors will impatiently expect a winning business model, customer segment definitions and volume projections.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

ReadWriteStart

JULY 9, 2023

Business Models and Pricing Know your business model prior to launching a startup. However, sometimes founders only think about their big idea and forget about the strictly business side of a startup. However, you don’t need them all, you need the ones that suit your business model.

Intellectual Property 122

Intellectual Property Startup Burn Rate Metrics 122

Professor VC

SEPTEMBER 26, 2011

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1). Survey says VC's invest on Gut Instinct. ► July. (1). ► May. (1).

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Professor VC

JULY 22, 2009

The burn rates of my portfolio companies is certainly top of mind right now, but thats not what this post is about. Since Im not a fan of any of those genres, I have been looking forward to the release of his latest work, Burn Rate. ProfessorVC. The last blogger in Silicon Valley. Wednesday, July 22, 2009. Steve Bennet.

Burn Rate 28

Burn Rate Silicon Valley San Jose Angel Investor 28

Professor VC

NOVEMBER 13, 2008

This got me thinking about the business model that Mike Keiser has built at the resort and a lecture began to form in my head. cant wait to go back, which is clearly goal #1 in the list of critical success factors if anyone is still following the business model tangent. Labels: Bandon Dunes , business models , golf.

Oregon 28

Oregon San Jose Angel Investor Silicon Valley 28

Professor VC

MARCH 10, 2009

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1). Survey says VC's invest on Gut Instinct. ► July. (1). ► May. (1).

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Angel Investor 28

ReadWriteStart

JUNE 13, 2011

Reinventing the board meeting may offer venture-backed startups a more efficient, productive way to direct and measure their search for a profitable business model. Yet boards of large companies exist to monitor efficient strategy and execution of a known business model. What are the most important hypotheses to test now?

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

Professor VC

JANUARY 27, 2008

In addition to the case study analysis, the students also have the opportunity to develop a business model and financial model for a new concept, which always proves a lot more challenging. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1). ► July. (1).

San Jose 28

San Jose Technical Review Angel Investor Venture Capital 28

Steve Blank

SEPTEMBER 17, 2009

If you can’t find enough paying customers in the Customer Validation step, the model returns you to Customer Discovery to rediscover what you failed to hear or understand the first time through the loop.

Customer Development 255

Customer Development Developer Customer Silicon Valley 255

BeyondVC

OCTOBER 6, 2003

Siebel and IBM team on hosted CRM service It feels like 1999 again when the ASP (application service provider) business model was all the rage. Siebel’s enterprise license revenue model is coming under real pressure as large enterprises are getting tired of spending millions of dollars upfront with no real ROI.

Burn Rate 78

Burn Rate Business Model Hosting Revenue 78

Professor VC

DECEMBER 18, 2008

Many entrepreneurial programs feature a business plan competition, which is a great exercise. At SJSU, we also have a business plan competition in the spring, which ideally allows the students to build a viable business model around their NIF projects. Can Entrepreneurship Be Taught? ► October. (1). ► July. (1).

Silicon Valley 28

Silicon Valley San Jose Technical Review Angel Investor 28

Professor VC

MAY 29, 2008

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1). Survey says VC's invest on Gut Instinct. ► July. (1). ► May. (1).

Angel Investor 28

Angel Investor Angel Groups San Jose Accredited Investor 28