article thumbnail

The Virus Survival Strategy For Your Startup

Steve Blank

The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? Burn Rate and Runway. To answer the first question, take stock of your current gross burn rate i.e. how much cash are you spending each month. What does your new business model look like? How do you know?

Burn Rate 436
article thumbnail

3 Ways To Ensure Your Startup Has A Top-Notch Team

YoungUpstarts

While you absolutely need to keep an eye on earnings and burn rate, human capital is ultimately the fuel that makes the machine run. When Chris Cancialosi , founder and partner at gothamCulture, first began hiring for his team, he took into consideration the fact that professional firms often have long or uncertain sales cycles.

Startup 100
Insiders

Sign Up for our Newsletter

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

article thumbnail

Critical Key Performance Indicators (KPIs) for Founders

Up and Running

Many startups focus on growth (instead of profits) and often need to track KPIs that may be different from those used by established businesses: Burn rate : indicates the company’s negative cash flow or how quickly it’s spending money. Activation rate: measures how many visitors are engaging with your website or app.

Founder 71
article thumbnail

2023-2024 B2B SaaS Benchmarks

VC Cafe

Burn Rate Definition: Burn rate is the rate at which a startup is spending its capital to finance operations before generating positive cash flow. 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.

B2B 97
article thumbnail

Keep Asking Questions

ithacaVC

Ask: why is your burn rate so high and is it sustainable? Ask: how does the buying coop work and how will it impact your sales cycle. Now, with the benefit of hindsight, this only makes me ask more questions. I think you are probably getting the theme: don’t be shy about asking questions. Ok, you get it.