Startup Lessons Learned

APRIL 14, 2009

Lessons Learned by Eric Ries Tuesday, April 14, 2009 Validated learning about customers Would you rather have $30,000 or $1 million in revenues for your startup? All things being equal, of course, you’d rather have more revenue rather than less. And yet revenue alone is not a sufficient goal. More on that in a moment.

Customer 167

Customer San Francisco Lean Hockey Stick 167

Steve Blank

SEPTEMBER 14, 2009

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. There was now a public market for companies with no revenue, no profit and big claims.

Silicon Valley 237

Silicon Valley IPO Technical Review Venture Capital 237

Both Sides of the Table

MARCH 11, 2011

I thing I’ve learned over the years is that technology purists hate advertising even when it is that revenue stream that truthfully drives much of our industry. When he tells his stories from the 1990′s your realize that he was probably the original “lean startup.&# Think YouTube vs. the rest.

Product 350

Product Tuvalu Dilution Incubator 350

Startup Lessons Learned

DECEMBER 23, 2009

If you never have, you can create your own using Google Finance. They were accustomed to measuring their progress primarily by gross revenue compared to their targets. If you never have, you can create your own using Google Finance. The Lean Startup Intensive is tomorrow at Web 2.0. Go ahead and try it, then come back.

Metrics 167

Metrics San Francisco Lean Continuous Deployment 167

Startup Lessons Learned

NOVEMBER 14, 2013

Guest post by Lisa Regan, writer for T he Lean Startup Conference. We’ve posted the full program for The Lean Startup Conference , and it includes more than three days of events for Gold pass holders and six days of events for VIP pass holders. On the evening of December 8, Ignite Lean Startup kicks off the conference.

Continuous Deployment 162

Continuous Deployment Norway Lean Analytics 162

This is going to be BIG.

AUGUST 22, 2012

Let’s start out with the basic functions of a tech company: 1) Engineering 2) Marketing 3) Sales 4) Business development 5) PR 6) Design 7) Product Management 8) HR 9) Operations 10) Finance Ok, that's just overwhelming. Ready to start simplifying? The last two are pretty basic.

PR 152

PR Technical Review Seed Stage Design 152

Startup Lessons Learned

JANUARY 10, 2011

I hear similar things for pre-revenue startups that are on schedule, on time, and on budget - even though they are busy building something that nobody wants. (In Therefore, if you want to sell IMVU one day, you’ll need to abandon your business model, even though it’s generating a lot of revenue per customer.

Silicon Valley 167

Silicon Valley San Francisco Lean Investment Bankers 167

View from Seed

OCTOBER 24, 2019

Pre-seed investing should be super simple, so any signs of pro-rata rights, tranched financings, charging the company for value-added services, etc. As an inexperienced founder, you are very likely to take at least two rounds of financing before a series A, so the round to try to skip is any sort of second seed. should be avoided.

Dilution 149

Dilution B2B Burn Rate Early Stage 149

Up and Running

JUNE 21, 2013

You need to engage in Lean Planning. 60 percent of the small businesses that fail in America fail due to lack of cash, not lack of profits—using Lean Planning you can quickly understand if you have missed assumptions about your financials that will ultimately have an adverse effect on your cash.

Small Business 153

Small Business Software Review Lean Advertising 153

Feld Thoughts

SEPTEMBER 16, 2011

Since SayAhh is in the pre-launch development stage, the company doesn’t have any revenue yet. This results in a gross margin of $0, where gross margin is revenue – cost of goods sold. The default Quickbooks setup uses “Income” to refer to “Revenue”.

Balance Sheet 129

Balance Sheet Fractional CTO Burn Rate Salary 129

Steve Blank

NOVEMBER 7, 2013

In 2012 I got together with Alexander Osterwalder , Henry Chesbrough and Andre Marquis to think about the Lean and the future of corporate innovation. What CEOs, management teams and shareholders care about is growth —revenue growth, greater user adoption, increased market share, bigger margins, etc.

Lean 331

Lean Nepal Cofounder Customer Development 331

The Startup Magazine

OCTOBER 27, 2019

Unfortunately, such a high number does not translate to an equal level of revenues. An even more surprising statistic is that over 60% of all business-related revenues are collected by large corporations, the likes of which include Apple, Facebook, Amazon, Google, and similar. Inventory Issues. Excessive Borrowing.

Technical Review 87

Technical Review Revenue Software Review Campaign 87

The Startup Magazine

OCTOBER 9, 2019

Tech startups are, in contrast, focused on rapid growth, potential, and top-end revenue. Separate Personal and Business Finances. The self-funded startup is an increasingly popular model used by tech-oriented entrepreneurs to bootstrap their business idea without the need for traditional finance or funding rounds.

Technical Review 112

Technical Review Bootstrapping Startup Finance 112

Startup Professionals Musings

JULY 16, 2012

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. For VCs, early-stage means customer revenue is less than $10M.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

Steve Blank

MAY 28, 2009

The implications for entrepreneurs is that each of these (market risk versus invention risk,) require radically different financing models, a different type of venture investor, different timing for hiring sales and marketing, etc. These two numbers have direct impact on revenue and financial health.

Vertical 167

Vertical Silicon Valley Marketing Customer 167

Steve Blank

MAY 9, 2017

A 20 th century VC was likely to have an MBA or finance background. Meanwhile every other department in the company would be making their plan – meaning the company was burning cash without bringing in revenue. I’m glad to have been part of the team inventing the Lean Startup methodology.

Restful 249

Restful Silicon Valley San Jose Puerto Rico 249

This is going to be BIG.

APRIL 27, 2010

So then, why are we teaching our students to trust fall without any revenues of their own to catch them? No revenues, no costs. Teach ‘em Finance and Chase or Accenture will come and pick ‘em up 30 at a time. How does the average Lean Startup Meetup get event space at a school? It’s a recipe for failure.

New York 119

New York CTO Hire Technical Review New York City 119

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Bootstrapping inculcates the entrepreneurial discipline and financial responsibility to run a lean business. ? Crowdfunding. Incubators and Accelerators. Inception stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

David Teten

MARCH 5, 2021

BCG (June 2018): “Startups founded and cofounded by women actually performed better over time, generating 10% more in cumulative revenue over a five-year period: $730,000 compared with $662,000.”. ” (I discuss this more in Why are Revenue-Share VCs investing in so many women and underrepresented founders ?) ” .

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

Up and Running

MAY 15, 2019

In this guide to starting a brewery, we’re going to talk with brewers who’ve been-there-done-that, and we’ll get insights from experts in supporting industries such as insurance and finance, as well as discuss regulatory issues. Watch your finances. It helps you plan, helps you get a return, and ultimately helps you generate revenue.”.

Oregon 24

Oregon Jordan Software Review Distribution 24

Steve Blank

FEBRUARY 25, 2014

a language corporate innovation groups can use to communicate to business units and finance. The startups in our Lean LaunchPad classes and the NSF I-Corps incubator use LaunchPad Central to collect a continuous stream of data across all the teams. data that investors, accelerators and incubators can use to inform selection.

Incubator 318

Incubator Intellectual Property Startup Lean 318

Steve Blank

DECEMBER 7, 2010

Channel incentives – does your product or proposition extend or replace existing revenue for the channel? ——————– Class 6 Feb 8 th Testing Revenue Model. Class Lecture/Out of the Building Assignment: What’s a revenue model? What types of revenue streams are there?

Wiki 318

Wiki Lean Management Business Model 318

Up and Running

MAY 23, 2016

In fact, SaaS industry revenue is projected to grow from $49 billion in 2015 to $67 billion in 2018, a compound annual growth rate of approximately eight percent. Step 1: Start with a lean plan. At this stage, simply list your primary revenue streams and your key expenses. Subscription Business Trends and Predictions for 2016.

Software Review 74

Software Review Software Delaware Forecast 74

YoungUpstarts

APRIL 5, 2017

. “If it ain’t broke, don’t fix it” is not a strategy that helps companies lean into the future, because it’s focused on the past. Leaning on check float as a cash management strategy gives the impression of cash flow problems. Automation is the place to start for scaling.

Technical Review 113

Technical Review Lean Operations Management 113

Up and Running

MAY 3, 2012

Eric Ries , author of The Lean Start-up , puts it best: ‘ The grim reality is that most start-ups fail. For technology entrepreneurs, we need to encourage them to understand the lean startup methodology, as a means to help them validate their assumptions. Most products are not successful. Collectively, we need to do better.

Entrepreneur 82

Entrepreneur Technical Review Silicon Valley Lean 82

Steve Blank

JANUARY 25, 2010

How do we finance the company, etc. How Does Customer Development, Agile Development and Lean Startups Fit? A Lean Startup is Eric Ries’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. When revenue, users, traffic, etc., Lessons Learned.

Agile 335

Agile Startup Silicon Valley Business Model 335

ConversionXL

NOVEMBER 14, 2013

Are you familiar with the Lean Startup methodology? They call it Lean Startup, but it’s also essentially conversion optimization. Lean Analytics (book, mainly for startup folk, but good primer for all). Higher revenue / conversions are more important than boss’s wife liking the sliders. Reminds me of rule #1.

PPC 123

PPC Analytics Conversion SEO 123

Gust

JULY 8, 2012

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. For VCs, early-stage means customer revenue is less than $10M.

Early Stage 177

Early Stage Finance Seed Stage Entrepreneur 177

Mike Michalowicz

FEBRUARY 28, 2018

Dr. White has one of the highest Yelp scores among private practice optometrists and has one of the highest per-patient revenues in the country. These are outdated ways to manage your business finances and won’t help you maximize profits. Lean on your accountant and hire a good financial coach to hold you accountable.

San Diego 111

San Diego Technical Review California Retention 111

Startup Lessons Learned

MAY 21, 2014

Post by Lean Startup Conference co-hosts Sarah Milstein & Eric Ries We’re excited to announce this year’s Lean Startup Conference , December 8 – 12 in San Francisco. You can leave ideas in the comments or email Sarah Milstein , co-host for the conference and CEO of Lean Startups Productions.

Lean 165

Lean San Francisco Startup Metrics 165

Startup Lessons Learned

JULY 25, 2013

The Lean Startup methodology has its roots in the tech sector, where companies need to iterate quickly in order to survive. In fact, at last year’s Lean Startup conference we had speakers from a number other sectors, including government, transportation, education and public health. Here''s just one example.

Lean 167

Lean Ghana Startup Government 167

Startup Lessons Learned

JULY 11, 2019

Ann will be speaking at this year’s Lean Startup Conference in October about all of this and more. That meant that if the change was starting on the founders side, then there had to be a change on the financing side. Let’s start off with how and why you helped found All Raise and what its mission is. I've been in venture now twice.

Founder 68

Founder Lean Venture Capital Cofounder 68

Duct Tape Marketing

FEBRUARY 10, 2022

I, you know, if it doesn't okay, you know, it doesn't work, but I'm gonna give somebody my life and my finances and, you know, trust is gonna be a big deal. They do get more complicated as you get larger, but really, uh, revenue recognition is a phrase. A lot of them are trying to maintain. We've looked at a few.

CPA 95

CPA Technical Review Revenue Forecast 95

Up and Running

APRIL 30, 2020

Financing options: Can I get an emergency payroll loan? You can revisit the analysis at any time and make adjustments based on your updated budgets and revenue numbers, as well as the changing economic landscape. You keep it lean and use a continuous review-and-revise mentality to steer your business through the crisis.

Forecast 120

Forecast Balance Sheet Burn Rate Software Review 120

Seeing Both Sides

AUGUST 16, 2012

As we have seen with the recent speed bumps at highfliers like Groupon and Zynga, taking “lean startups” from foundation to creating sustainable, scalable, profitable business models is a very rare and special task. TripAdvisor, in effect, was a model lean start-up with an engineering-driven, product-focused founder. Really hard.

Part-Time VPE 54

Part-Time VPE Software Review Costa Rica Technical Review 54

crowdSPRING Blog

NOVEMBER 27, 2012

After all, without customers, there is no revenue. More importantly, if you reach for a broad market, you will need more financing than if you pick a more targeted, niche market. Lean Marketing: Five Cheap Ways To Market Your Startup. When you choose a market, you should consider five main factors: 1. image credit: DonnitaMae.

Small Business 110

Small Business Marketing Startup Silicon Valley 110

Altgate

SEPTEMBER 16, 2010

But did you know that founder Markus Frind has just 3 employees for his $10MM+ revenue business? Unfortunately they will be very expensive (30-50% or more of gross revenue). … Tom Eisenmann Furqan: Does outsourcing engineering work well when following a lean approach with lots of iterative learning? PR/Marketing.

Software Review 65

Software Review Offshore Startup Boston 65