Entrepreneurs-Journey.com by Yaro Starak

FEBRUARY 11, 2011

In this post, I want to lay out the details involved in how I first realized the opportunity, the formation of the business idea, the search for my supplier, the establishment and growth of the business, problems encountered and lessons learned, as well as the exit strategy that resulted in the $250,000 sale of the business.

SEO 97

SEO PPC America Design 97

Startup Professionals Musings

MARCH 13, 2020

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Even if you work harder than everyone else, you probably won’t stay ahead of rising costs and new competitors. > Back up your projections with a simple financial model.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Up and Running

MAY 14, 2015

Your company’s sales forecast, spending budget, and cash flow. The most standard business plan starts with a summary and includes sections or chapters covering the company, the product or service it sells, the target market, strategy and implementation milestones and goals, management team, and financial forecasting, and analysis.

Business Plan 60

Business Plan Lean Forecast Balance Sheet 60

Up and Running

OCTOBER 3, 2018

Set a specific time each month to review it , comparing forecasts to actuals and revising as necessary. Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. For instance, PARE relies on its house-flipping capabilities to buy property at lower costs and sell it at a higher price.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

Startup Professionals Musings

MAY 13, 2011

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics. Exit strategy. See where your cashflow bottoms out.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics. Exit strategy. See where your cashflow bottoms out.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Up and Running

SEPTEMBER 3, 2015

How easy is it to acquire a customer, and how much will it cost? How much money and effort will it cost to deliver value? Estimate your basic expenses and forecast sales to ensure that you can make a profit with your business. Estimate your startup costs. Sales forecast. Know your exit strategy.

Elevator Pitch 60

Elevator Pitch Startup Balance Sheet Forecast 60

Up and Running

NOVEMBER 12, 2018

With the total cost of each box in hand, calculate a price with at least a 40 percent profit margin, as suggested by CrateJoy. For example, the men’s hair product box might cost $39.95 per month, but if you commit to subscribing for a year, its monthly cost will drop to $36.95. Startup costs. Fulfillment. Milestones.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

Startup Professionals Musings

APRIL 22, 2010

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics. Exit strategy. Include a current valuation estimate.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Gust

AUGUST 5, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics. Exit strategy. See where your cashflow bottoms out.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

The Next Web

MAY 26, 2013

Provide customer acquisition costs. Investors want to know how much it costs you to gain a customer. Ideally, you can provide this cost per marketing channel. For example, you could say, “It costs us $5 per customer through ads, but $2 per customer through affiliate networks.” Offer key financial metrics.

Software 151

Software Forecast Startup Exit Strategy 151

Startup Professionals Musings

FEBRUARY 13, 2016

The business model has to clearly define who is your customer, market penetration expected, how much customers pay versus total costs and the investment required to sustain cash flow. What are your forecasts for revenue, expenses and cash flow? Forecasts are evaluated as a level of commitment and a measure of your business savvy.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

AUGUST 8, 2016

By profit, I simply mean offering a product or service to customers for a price that exceeds the total costs associated with the solution, thus providing some basis for recovering sunk costs and generating a return for stakeholders. Customers typically won’t switch to a new vendor for less than a twenty percent cost advantage.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

David Teten

SEPTEMBER 23, 2017

Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. With regard to analyzing a given company’s financial model, that is a reasonable stereotype, given that VCs do not typically use financial leverage and financial forecasts of early-stage companies have a very high uncertainty rate.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. This allows them to calculate burn rates, break-even points and forecast the company valuation over time. Potential investor return calculation and exit strategy.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Up and Running

APRIL 28, 2015

Investors will expect to see your sales forecast, profit and loss statement, and cash flow forecast for at least three years. Exit strategy. You do this in the form of an “exit strategy” slide that outlines who your potential acquirers might be if you manage to grow your company and be successful.

Forecast 60

Forecast Hockey Stick Exit Strategy Intellectual Property 60

Growthink Blog

NOVEMBER 10, 2017

What is the company's exit strategy? The process of creating the business plan helps to minimize opportunity costs. To understand and forecast your company’s staffing needs. The business plan answers investors' questions such as: Is there a need for this product/service? What are the financial projections?

Business Plan 128

Business Plan Private Placement Exit Strategy Finance 128

Steve Blank

OCTOBER 1, 2009

Sloan put in place GM’s management accounting system (borrowed from DuPont) that for the first time allowed the company to: 1) produce an annual operating forecast that compared each division’s forecast (revenue, costs, capital requirements and return on investment) with the company’s financial goals.

Silicon Valley 187

Silicon Valley United States RSS Customer Development 187

Up and Running

MAY 22, 2018

An MVP or a minimum viable product is a scaled-down, cheaper (cost-wise) version of your full product. Demonstrating to investors that you have a handle on key business metrics as they relate to your business model and forecast is essential. Total cost that is involved in gaining a paying customer. Describe your exit strategy.

Exit Strategy 90

Exit Strategy Angel Investor Search Elevator Pitch 90

Up and Running

AUGUST 16, 2017

No exit strategy for firing lazy co-founders. Make sure to consider how legal costs and taxes will deduct from the bottom line. For example, if the company needs to purchase new office equipment every three years, then the discounted value of those expenses should be included in the forecasted financial projections.

Business Plan 127

Business Plan Hockey Stick Cofounder Salary 127