Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? Operating Numbers. The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. The ripple effects won’t be obvious at first.

South Korea 334

South Korea Salary Business Model China 334

Startup Professionals Musings

SEPTEMBER 29, 2018

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. Waiting until you have something to sell before bringing on a sales and operations staff.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Feld Thoughts

OCTOBER 28, 2011

While Jane was building SayAhh’s revenue projections , Dick focused his attention on building the expense side of the projections. It is simple in that it forecasts how much cash will be coming in the door (revenues + equity financing + debt financing) and then subtracts from that amount how much cash is expected to be going out the door.

Revenue 128

Revenue Balance Sheet Forecast Software Review 128

A Smart Bear: Startups and Marketing for Geeks

DECEMBER 21, 2009

If you had zero revenue from now on, on what date would you run out of money? Second, you know the length of your fuse even in event of disaster (if you have revenue) or if you never manage to land a customer (if you're just starting out). Which of your business operations do you hate? Cartoon by Andertoons.

Startup 315

Startup Revenue Cofounder Sales 315

YoungUpstarts

JULY 23, 2014

All software is supposed to save time, raise revenue, cut costs and boost productivity, but we now know how difficult it is to meet those goals. New wave tech companies like Facebook, Google and Twitter have to hire thousands of developers with six-figure salaries to offer products that work well. Build-it-Yourself to Do-it-Yourself.

Software 248

Software eCommerce Software Development Software Developers 248

Startup Professionals Musings

DECEMBER 17, 2013

For starters, here is my selection of some key metrics that every six-sigma joint like GE tracks without thinking, but that too many small businesses haven’t yet formalized: Sales revenue. Operating productivity. For example, sales productivity is simply actual revenue divided by the number of sales people. Size of gross margin.

Metrics 252

Metrics Technical Review Retention Acquisition 252

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue. The founders.

Founder 281

Founder Technical Review CTO Hire IPO 281

YoungUpstarts

AUGUST 18, 2020

This is a very introductory place to start, but if your company owns the building, machinery, inventory, and/or technology in which it uses to operate, there is often significant value in this in and of itself. Look at Revenues. Another way to do this would be to look at price/earnings (P/E) data.

Balance Sheet 195

Balance Sheet Valuation Software Review .Net 195

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 26, 2013

No salaries followed by low salaries. The scrounging and scrabbling and begging and fighting the a s for those morsels of revenue, those crumbs of validation. Are you OK releasing control in day-to-day operations to managers, and then releasing control of the managers to your executive team? It’s over. We did it.

Software Review 295

Software Review Startup Cofounder Search 295

Steve Blank

NOVEMBER 1, 2017

So is John Rice, the head of Global Operations along with CFO Jeffrey Bornstein. Increase operating margins to 18% (by cutting expenses). At GE the biggest problem in 2017 was major revenue misses in their Power business.) Often the short-term cuts directly affect employee salaries, jobs, and long-term investment in R&D.

Institutional Investors 271

Institutional Investors Dividend Stock Technical Review 271

The Startup Magazine

JUNE 20, 2024

You need not worry about the financial burden of a full-time salary. Early-stage startups often operate with tight budgets, making it impractical to hire a full-time CMO. Such a dual approach helps B2B startups generate new leads while building brand awareness and driving revenue growth right from the start.

B2B 148

B2B Hiring Salary Early Stage 148

Startup Professionals Musings

FEBRUARY 5, 2010

Pay people with equity or future revenue. When I was interviewed for my first startup CEO job, I was expecting a $150,000 salary, but instead was offered an opportunity to contribute $50,000 to the business, and work for equity only. Another one to avoid cash burn for software development is a contract for percent of future revenue.

Burn Rate 120

Burn Rate Startup Salary Equity 120

Both Sides of the Table

APRIL 27, 2010

Most of what I learned about operating startups I learned from the really tough years at my first company from 2001-2003. I was paid less in salary in 2004 than I was paid at the job I quit in 1999 (a job I had held 8+ years). and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Up and Running

JULY 22, 2014

It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. how you make money. ” Cash flow statement.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

YoungUpstarts

JUNE 16, 2020

This method branches off into two schools of thought: Past Earning Capitalization – this suggests that the expected revenue in the future can be predicted by a record of the company’s past earnings, once undue revenue or expenses are accounted for and multiplies the projected earnings by a capitalization factor.

Valuation 162

Valuation CPA Software Review .Net 162

The Startup Magazine

MAY 31, 2022

Any operation that involves an employee, like recruitment, payroll management, or even offboarding, can be included in these HR functions or duties. . Payroll management entails several steps, including: Calculating allowances (such as rent and travel expenses) and salary components (variable and net pay). Cost-cutting.

United States 158

United States Salary UAE Hiring 158

The Startup Magazine

DECEMBER 21, 2022

After all, nonprofits have operational expenses such as rent, energy bills, and salaries. If nonprofits want to attract top executives, then they must also pay competitive salaries and need the nonprofit fundraising to support it. However, nonprofits can’t generate revenue through conventional means due to their nature.

Social Media 158

Social Media Government Salary Software Review 158

Startup Professionals Musings

SEPTEMBER 14, 2016

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. Waiting until you have something to sell before bringing on a sales and operations staff.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 4, 2017

Small companies operate this way by necessity, and it works! If Google launches a new product that generates $10,000,000/year in revenue, is that good? They could have taken the tens of millions of dollars that the product cost to develop, and made their existing operation just 0.01% more effective, and made the same amount of money.

Government 223

Government Startup Cofounder Technical Support 223

Up and Running

JULY 28, 2022

Not only do these requirements ensure that businesses operate within the law but it also protects small business owners and their consumers. . A small business is an independently owned and operated entity that engages in commercial activity and fulfills the set industry-specific size standards. What legally defines a small business?

Small Business 167

Small Business Intellectual Property Cofounder Software Review 167

The Startup Magazine

JULY 17, 2022

Relief from income taxes for companies that are operating at a loss. If the calculated research allowance surpasses the revenue or corporation tax, the excess amount will be returned as a refund of the income or corporate tax. In General: In Germany, taxable income includes wages, salaries, and benefits received upon retirement.

Developer 158

Developer Germany Software Developers Software Development 158

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

YoungUpstarts

JULY 16, 2019

Information systems analyst and consultants start at a median salary of $74,048. This generated $16 billion in annual revenues in 2015. The province has the lowest operating costs for companies working in the digital services industry. billion in revenue. Tech Association listed five tech jobs in high demand until 2021.

Canada 167

Canada Hiring Artificial Inteligence Software Developers 167

ReadWriteStart

JUNE 26, 2020

Cost savings companies experience when they eliminate expensive office rents and the payroll costs associated with the salaries required for people to live in major metro areas. There are already a ton of great resources online for helping companies get a handle on running a remote operation. Managing to Win. E – Execution.

Silicon Valley 198

Silicon Valley Distribution Engineer Technical Review 198

Both Sides of the Table

SEPTEMBER 29, 2009

Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. As a personal story, I sat on the board of one company with a very unhealthy burn rate relative to revenue or expected growth. VC’s fund their salaries and operations through management fees, which typically equal 2% per year.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

The Startup Magazine

JUNE 13, 2024

You must familiarize yourself with key concepts such as marketing, sales, operations, cash flow management, balance sheets, and profit and loss statements. Create a detailed business plan where you must outline your financial goals, expenses, and revenue projections. Next, evaluate your funding options.

United States 141

United States Bootstrapping Social Media Angel Investor 141

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

The Startup Magazine

NOVEMBER 13, 2020

It’s not enough to base your estimates on salaries alone. With multiple workers, the difference between expected outlay and what you actually end up paying can bring operations to a halt, so be sure to think it through. Overall cost is typically 1.25 times your basic compensation figure. This can include: Property insurance.

Cost 151

Cost Entrepreneur Software Review Salary 151

ReadWriteStart

JANUARY 26, 2021

That’s because more than half of all startups fail within the first five years of operation. The solution is to start generating consistent revenue faster or to work with angel investors or venture capitalists to get more funding. The basis for a startup’s continuing operation is its underlying economics. Lack of Market Need.

Startup 180

Startup Angel Investor Business Model Demand 180

Both Sides of the Table

JULY 13, 2013

By the way, the salary, which was a good salary, was $27,000 entry salary, and engineers were paid $31,000 to $35,000. [00:10:30] You have been at five startups, you had an exit at your last company where you were the Chief Revenue Officer. ” “Okay, well you can be an operating partner or a venture partner.”

Cofounder 337

Cofounder Technical Cofounder Startup San Diego 337

Berkonomics

OCTOBER 5, 2023

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. How about young or pre-revenue companies? Why did the company abandon a profitable market, even if it could not generate $100 million a year in revenues?” first appeared on BERKONOMICS.

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

YoungUpstarts

SEPTEMBER 12, 2018

by Kristy Campbell, Chief Operating Officer at Rev1 Ventures. Research shows that companies with greater gender and racial diversity drive nearly 15x more sales revenue than companies with homogenous teams, proving that it literally pays to build an inclusive team. Diversify your talent search to diversify your team.

Hiring 100

Hiring Technical Review Silicon Valley Due Diligence 100

A Smart Bear: Startups and Marketing for Geeks

JULY 24, 2012

It’s quite simple, which is when you had systems where you had limitations on distribution or transportation of products, it enabled you to operate with a certain cost structure. You don’t exit at north of a billion dollars unless you’re operating at scale. Then you have a business that’s defensible.

Silicon Valley 204

Silicon Valley Software Review Internet Technical Review 204

crowdSPRING Blog

JANUARY 27, 2013

We write often about ways small business can reduce expense, increase productivity, and operate more efficiently through a lean approach to marketing, technology, and operations. First of all, every employee that a company hires represents not just a salary expense, but everything that goes along with it. Form 1099-misc: U.S.

Lean 99

Lean Hiring Salary Small Business 99

Startup Professionals Musings

FEBRUARY 2, 2013

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities. Reputable non-profits need to keep their operating expenses low.

Revenue 262

Revenue Startup Africa United States 262

ReadWriteStart

NOVEMBER 17, 2020

If you hire too many people too quickly, you’ll experience financial strain; you’ll be forced to pay the salaries and benefits of more people than you really need, and you won’t have much revenue coming in. Second, prioritize establishing revenue. You should have a clear understanding of who you need and why you need them.

Hiring 126

Hiring Startup Salary Employee 126

Hearpreneur

AUGUST 11, 2021

Every waking day, we are having tremendous changes in regulations and technology which greatly affects the way businesses operate. Some entrepreneurs will say the future is definitely bright but to others, some of these changes are meant to work against their expansion and business operations. Photo Credit: Jennifer Carrasco.

Entrepreneur 127

Entrepreneur Technical Review Social Media Bootstrapping 127