Remove Cost Remove Merger Remove Revenue
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9 Success Principles To Propel Your Next New Venture

Startup Professionals Musings

You need a stable customer base with an automatically renewing revenue stream, such as the subscription model. This reduces the cost of customer acquisition, allows easy upgrades for service and new features, and improves customer loyalty in the face of new competitors in the market. Prioritize mergers and acquisitions early.

Merger 386
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Beware of Premature Merge Elation

Both Sides of the Table

How much dilution should I take for it?&# My friend’s company was pre-revenue. I lived through the era of companies doing premature mergers. That’s why immature teams spend so much time on mergers. A merger is not the panacea. There is no such thing a “merger of equals&#. This is a good thing.

Merger 276
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Revenue Recognition’s Effect On M&A

YoungUpstarts

There has been a lot of chatter regarding changes in revenue recognition criteria lately, but the effects it will have on the evaluation of companies planning an exit is just beginning to emerge. Specifically, the new standard will follow a five step model for revenue recognition: Identify the contract (the deal that has been reached).

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10 Key Business Plan Elements Not In A Product Spec

Startup Professionals Musings

For example, “We just patented a new battery technology that will cut your smartphone charge time and cost in half.” If possible, quantify these in non-technical business terms, such as dollars saved or replacement costs over time. They want to see revenue to share in the return. Use non-fuzzy terms to quantify customer value.

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6 Strategies For Startup Exit That Investors Accept

Startup Professionals Musings

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Most experts don’t recommend this approach as your default strategy anymore.

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Paranoid Companies Miss the Best New Opportunities

Startup Professionals Musings

Yet a creative collaboration with your biggest competitor may be the best opportunity for revenue and survival. As a result of our increased coverage and wider range of solutions, we both gained revenue and credibility, while reducing marketing and development. Cost sharing and economies of scale.

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Your Toughest Competitor May be Your Best Partner

Startup Professionals Musings

Yet a creative collaboration with your biggest competitor may be the best opportunity for revenue and survival. As a result of our increased coverage and wider range of solutions, we both gained revenue and credibility, while reducing marketing and development. Cost sharing and economies of scale.

Partner 225