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The questions every startup or small business CEO needs to ask now are: What’s my BurnRate and Runway? What does your new businessmodel look like? BurnRate and Runway. To answer the first question, take stock of your current gross burnrate i.e. how much cash are you spending each month.
Benchmark: Serena Capital advises B2B SaaS startups to target a gross margin of 80% or higher to demonstrate the scalability and profitability of their businessmodel. BurnRate Definition: Burnrate is the rate at which a startup is spending its capital to finance operations before generating positive cash flow.
While you absolutely need to keep an eye on earnings and burnrate, human capital is ultimately the fuel that makes the machine run. He wants to hire “someone who is not afraid to go figure it out on her own, who has the capacity to discover what is needed and then present the business case for how to get that skill.”.
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