Startup Professionals Musings

APRIL 14, 2021

For example, my dictate that entrepreneurs need to find a “ painful ” problem to solve (such as high cost, low productivity) to attract customers, doesn’t really account for many successful startup businesses today, including top social media platforms, dating sites, and new fashions. All of these tend to override cost and usability.

Customer 432

Customer Social Media Dividend Technical Review 432

The Startup Magazine

AUGUST 12, 2024

Part of the reason this value is taking longer than expected to emerge is due to operating costs. Moreover, these costs increase exponentially with the size of the data sets that algorithms process. Meanwhile, 41% of companies consider the high costs involved in ML experimentation to be the main challenge they face.

Technical Review 167

Technical Review Cost Artificial Inteligence Analytics 167

Startup Professionals Musings

JUNE 24, 2020

Everyone knew these had potential, but had not demonstrated success to date due to infrastructure and support requirements, or cost constraints. Typical valuations range from 3x-5x revenues. Investors are rushing to offer ridiculous valuations, even to pre-revenue startups, to keep from missing out.

Artificial Inteligence 436

Artificial Inteligence Marketing Valuation Startup 436

Startup Professionals Musings

NOVEMBER 28, 2020

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Years ago, it cost a million dollars for a new e-commerce site, one that you can now create for almost nothing with current tools and technology. The cost of social media done well is low. Marty Zwilling.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

Startup Professionals Musings

JUNE 26, 2020

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.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Startup Professionals Musings

MARCH 6, 2021

I’m sure all you accountants will agree that fixing the mistakes listed here does not require rocket science, but I’ve seen them so often that to be forewarned is to be forearmed: Failing to factor in fixed costs when pricing. Always use a break-even analysis to measure what volume and price are required to offset total costs.

Technical Review 379

Technical Review Finance Startup Salary 379

Startup Professionals Musings

AUGUST 19, 2020

Things will cost more than you expect. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Cash flow out equates to burn rate, and the runway depends on your reserves.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

DECEMBER 5, 2021

Every time I challenge a business plan with little or no budget for marketing, I get the answer that they will be using “viral” marketing, which costs nothing. At any rate, “buzz-worthy” and “viral” are marketing illusions that cost big money to create, and these are only the beginning. That’s a double death wish. Marty Zwilling.

Viral 348

Viral Marketing SEM Campaign 348

Startup Professionals Musings

JUNE 2, 2021

Short-term earnings per share may be low, even as revenues and cash burned are high. It’s now more intense than ever, with the cost of entry going down, and new players easily able to join the fray from anywhere in the world. Find funders who seek long-term returns. Money-making is different in the digital age.

Software Review 355

Software Review Algorithm Global IPO 355

The Startup Magazine

JANUARY 21, 2025

The rise of electric and hybrid vehicles addresses these issues, reducing operating costs and appealing to those who value sustainability. Potential owners should thoroughly research different vehicle models, including their performance, reliability, and costs.

Technical Review 144

Technical Review Government Operations Demand 144

Startup Professionals Musings

FEBRUARY 14, 2022

For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. Don’t forget a viable financial model of costs, margins, customer acquisition, and break-even.

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

Startup Professionals Musings

MAY 26, 2023

The cost of any new product these days must include education and rollout marketing, perhaps equal or greater than the development costs. Don’t forget to address the risks and cost of doing nothing. Marketing costs will continue to increase. Customers won’t buy what they can’t find or don’t understand.

Product 354

Product Technical Review Artificial Inteligence Dividend 354

Startup Professionals Musings

AUGUST 23, 2020

Recurring revenue is the foundation for growth. Everyone loves the subscription model, since transaction costs exclude the cost of acquiring a new customer. Investors love this and other recurring revenue models because they facilitate growth through scaling.

Technical Review 324

Technical Review Entrepreneur Due Diligence Business Model 324

Startup Professionals Musings

AUGUST 17, 2020

Even good social causes need to bring in revenue to continue their worthy efforts. New smartphone apps cost only a few thousand, if you have the programming skills. Ask domain experts to quantify value for you. Choose projects with financial resources within your reach.

Technical Review 434

Technical Review Due Diligence Intellectual Property Internet 434

Startup Professionals Musings

OCTOBER 30, 2020

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. Minimize one-time sales in your business model.

Merger 386

Merger Software Review Acquisition Social Media 386

Startup Professionals Musings

FEBRUARY 8, 2020

Even non-profits need revenue to cover their costs, and continue to provide services. Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Risk is more manageable with subscriptions and even freemium pricing.

Management 322

Management Entrepreneur Forecast Stock Options 322

Startup Professionals Musings

MAY 14, 2023

Things will cost more than you expect. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Cash flow out equates to burn rate, and the runway depends on your reserves.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Steve Blank

APRIL 1, 2020

Any place with a fixed cost that relies on foot traffic will come under pressure. Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? Cut costs to stay alive for 24 months. Payroll costs/other variable costs. The ripple effects won’t be obvious at first.

South Korea 334

South Korea Salary Business Model China 334

Startup Professionals Musings

OCTOBER 26, 2022

Business agility is defined as the ability to adapt rapidly and cost efficiently. Business agility is simply to ability and intent to make small changes, on a daily basis, to penetrate new markets, add new revenue streams, reduce costs, and prune out products that are no longer carrying their weight.

Agile 379

Agile Technical Review Leadership Social Media 379

Startup Professionals Musings

NOVEMBER 23, 2020

This is a trap of the past to be avoided at all costs. Experiments on today’s revenue engine necessarily focus on short-term financial goals. The best leaders selectively forget the past, and are constantly on the lookout for the future’s raw material of new ideas. Sponsor experiments and measure like new investments.

Framework 402

Framework Engineer Leadership Revenue 402

The Startup Magazine

JANUARY 5, 2025

Whether you are trying to increase your revenue or improve your customer satisfaction, taking your business to the next level means looking at all of your strategic opportunities. Be sure to identify areas where you can cut costs without compromising quality too much. This is what is actually going to make you achieve it.

Software Review 147

Software Review Technical Review Retention Campaign 147

Startup Professionals Musings

NOVEMBER 2, 2022

Even non-profits need revenue to cover their costs, and continue to provide services. Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Risk is more manageable with subscriptions and even freemium pricing.

Forecast 304

Forecast Stock Options Technical Review Metrics 304

VC Cafe

MARCH 16, 2025

Perhaps the most powerful content creation of all, which is growing in popularity is coding, catapulting companies like Lovable which hit $17M in annualised recurring revenue in February 2025, up from $7M at the end of 2024. High User Acquisition Costs: The landscape for acquiring new users has become increasingly complex and expensive.

Technical Review 78

Technical Review B2C Generative AI IPO 78

The Startup Magazine

FEBRUARY 17, 2025

Managing Costs and Pricing for Profitability Financial management is a cornerstone of any successful business, and mobile IV therapy ventures are no exception. Start by conducting a thorough analysis of your start-up costs, ongoing expenses, and potential revenue streams.

Mobile 97

Mobile United States Technical Review Business Model 97

Steve Blank

SEPTEMBER 5, 2018

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Almost overnight the floodgates opened, and risk capital was available at scale from venture capital investors who rushed their startups toward public offerings.

Lean 335

Lean Burn Rate Startup IPO 335

Startup Professionals Musings

FEBRUARY 8, 2023

Most business professionals I know have been conditioned to think of inflation as highly negative, driving up their costs, and reducing customer buying. I see it as an opportunity to find new ways to attract customers , make long-needed changes to improve productivity, and lower your own costs of doing business.

Technical Review 239

Technical Review Revenue Social Media Cost 239

Startup Professionals Musings

JUNE 21, 2020

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 434

Revenue Valuation Viral Retention 434

Duct Tape Marketing

OCTOBER 28, 2024

Key Roles & Costs: CMO, Marketing Director, or VP of Marketing Monthly Cost : $15,363 - $29,732 Pros : You get a seasoned marketing expert who’s fully dedicated to your business. Cons : The cost is high, and for many small businesses, it’s just not practical. Cons : Costs add up quickly.

Small Business 80

Small Business Hiring Marketing Jordan 80

Startup Professionals Musings

MAY 25, 2020

According to National Venture Capital Association statistics , only 16% of venture-backed startups recently used this alternative, due to high liability concerns, demanding shareholders, and high costs. Most experts don’t recommend this approach as your default strategy anymore. Find a private equity firm or friendly individual.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

SEPTEMBER 16, 2023

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Years ago, it cost a million dollars for a new e-commerce site, one that you can now create for almost nothing with current tools and technology. The cost of social media done well is low. Marty Zwilling

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

YoungUpstarts

NOVEMBER 2, 2020

REASON 2: You Need to Gain the Efficiencies to Be Cost-Competitive. REASON 4: Digitally Driven Companies Have Greater Revenue Growth. Digitally advanced” companies create 9 percent more revenue than their industry competitors, as reported in a study conducted by MIT. percent average for the rest. Those days are gone.

Valuation 264

Valuation Technical Review Revenue Operations 264

Startup Professionals Musings

FEBRUARY 1, 2020

Business agility is defined as the ability to adapt rapidly and cost efficiently. Business agility is simply to ability and intent to make small changes, on a daily basis, to penetrate new markets, add new revenue streams, reduce costs, and prune out products that are no longer carrying their weight.

Agile 315

Agile Technical Review Leadership Social Media 315

The Startup Magazine

MARCH 19, 2025

We increased our revenue by 20% last year. Back then, there was no reliable way to measure ROI, yet the costs kept climbing year after year.” Many clients express initial skepticism but find that the comprehensive support and expertise provided lead to substantial increases in revenue, staff, and resources.

Rhode Island 88

Rhode Island Ohio Web Development Social Media 88

TechEmpower

JULY 31, 2023

One way to approach that last question is to use this simple model: Customer Acquisition Cost (CAC) How will your business reach prospects? And how much will it cost to win them? Apply costs to each channel. R : Revenue - Can you monetize any of this behavior? And most importantly, how does it make money?

Metrics 260

Metrics Startup Retention Acquisition 260

Duct Tape Marketing

SEPTEMBER 4, 2024

He shares his journey from struggling home service contractor to helping thousands of contractors increase their revenue. Initially, Joe believed that cutting costs and lowering prices would build client loyalty, but he learned that true service isn’t about slashing prices. The surgery doesn't cost hardly anything.

Cloud 88

Cloud Bankruptcy Widget Kansas City 88

Startup Professionals Musings

SEPTEMBER 17, 2021

Entrepreneurs set the price of their solution based on their costs, and their perception of value. With the best solutions, the customer gets value which exceeds your revenue. Then every startup has to learn to pivot, because their first understanding of the real problem is usually not quite right.

Sales 348

Sales Startup Bootstrapping Technical Review 348

Startup Professionals Musings

FEBRUARY 17, 2021

It wasn’t so many years ago that starting a new e-commerce business on the Internet was a complex custom development project, usually costing a million dollars or more. Almost anyone can start a company today on a shoestring budget, following these cost-cutting recommendations: Establish a solid legal structure for your business.

Cost 405

Cost Entrepreneur Burn Rate Social Media 405