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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

Startup 383
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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

It would not be a big stretch to image a well run service business like this making 15-25% net profit margins. Customer financing often comes in the form of your company agreeing to build a product with a “sponsor&# customer or two and helping them with the rollout / implementation. You own the IP you create.

Services 332
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Interview with Cliff Rees, XCast Labs

socalTECH

It seems that every week, a new, Voice-over-IP provider firm surfaces in the market, either providing PBX services, voicemail, or other similar services. What is your VoIP service all about, and how is this different from what seems to be lots of Voice over IP service providers? Cliff Rees: We're a software as a solutions company.

IP 165
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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

Building direct customer relationships with viewers (who want to tune into your channels). Your goal at Walmart ought to be to build customer awareness and ultimately persuade a sub-segment of the Walmart shopper to come buy your candy bars at specialty shops or at your companies website directly, where you’ll make much better margin.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you had huge customer growth but just didn’t focus on revenue that’s a different story. If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. Gross Profit (also called Gross Margin or sometimes “Net Revenue”). ” Harsh, but reality.

Startup 418
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10 Concrete Steps to Assure Business Innovation

Startup Professionals Musings

Successful innovation turns ideas into money, to enhance customer value, and thus shareholder value. Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. From time to time, include customers and sales members in ideation sessions. Value creation.

Coach 98
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Ten Principles Which Spell Continuous Innovation

Startup Professionals Musings

Successful innovation turns ideas into money, to enhance customer value, and thus shareholder value. Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. From time to time, include customers and sales members in ideation sessions. Value creation.

Coach 93