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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. Startup Lessons'

Burn Rate 383
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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

People raised rounds with “a discount to the next round&# or “warrant coverage.&# Yes, these give cheaper prices to early angels but potentially not much of a discount if the company becomes hot. The reason I have generally been against convertible debt is that historically it was a mechanism that avoided price. and not a min.

Finance 286
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Outsourcing: The Question Isn’t “Should I?” But “How Do I?”

YoungUpstarts

3PL Logistics , a shipping and delivery logistics company, says that finding a company that offers “ Less-than-truckload transportation arrangements to provide cost-efficient options for smaller shipments ” is important. Remember: outsourcing doesn’t have to be a negative thing.

Warrant 211
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Be Careful not to be Penny Wise, Pound Foolish

Both Sides of the Table

.&# I took it to mean, “making decisions with small amounts of money (pennies) that end up making bad sense for affecting larger amounts of money (pounds, as in Great British Pounds).&# I thought of it as people who cut corners on small costs but paid dearly in terms of lost productivity on expensive staff.

Warrant 333
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Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

The very modest salary that I drew didn’t come anywhere near meeting my monthly costs so I had to eat into savings. But it is clearly not warranted in all cases. I think the following circumstances warrant consideration, but there is no doubt it is deal specific. When we moved to Palo Alto we rented a place.

Founder 329
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Avoid Hiring Pitfalls When Staffing a New Venture

Startup Professionals Musings

Saving costs at hiring time can cost you a fortune through years of poor and unhappy performance. Then proceed with cautious urgency and make quick changes when warranted. Going to Craig’s list may be adequate for some roles, but your rolodex and networking are the best source for C-level executives.

Hiring 230
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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? I’ll pay my own moving costs and if we don’t raise the fund you owe me nothing.”. Why should I be? I want to join now while there’s risk.