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Your need for a board grows with complexity.

Berkonomics

The operations of the corporation become more complex. Bank loans with restrictive covenants are taken on. Then along comes either money or contracts from strategic or financial investors or partners. Ownership is spread among several classes of investors. The number of employees grows.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins).

Burn Rate 383
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. Typically promissory note or non-voting common stock, with covenants.

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Who are the Major Revenue-Based Investing VCs?

David Teten

The average monthly operating expenses is $70,335. 30% have been operated by females, 70% have been operated by males. 40% have been operated by “visible minorities”, 60% have been operated by “non-visible minorities”. The average cash balance is $191,164. Growth support.

Revenue 60
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What are the costs of taking investor money?

Berkonomics

The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO.

Cost 62
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Have you done your annual entrepreneurial health check?

NZ Entrepreneur

This means it’s even more important that Boards and owner-operators conduct regular health checks on their business to ensure their operations have a solid foundation. Breaching facility limits and covenants – this can take the form of a company breaching its overdraft facilities with multiple excesses each month.

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Assessing The State Of And Options For Your Business During COVID-19 Fallout

YoungUpstarts

Following from that, is there an operational plan that can be implemented to lower costs while salvaging the competitive advantage of the company? Which contracts are critical for the business to continue operations? contingent liabilities), and determining what equity (if any) is left for owners.