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8 New Ways To Focus On Customers For Trust And Profit

Startup Professionals Musings

As an advisor to entrepreneurs, I find that I often have to remind them that the world of customers has changed since they started their last business. Pushing yourself on customers by touting features and price doesn’t work anymore. Use analytics to see why customers are buying, as well as what.

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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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5 Unique Elements Make A Winning Selling Proposition

Startup Professionals Musings

If you are looking for funding and customers for your new business, you need to identify your “unique selling proposition” (USP) right up front, in 30 seconds or less, to differentiate yourself in today’s information overload. Investor and customer attention spans are short, and both will write you off quickly.

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5 Tips For New Entrepreneurs Needing Investor Funding

Startup Professionals Musings

In a two-minute video clip, you can introduce yourself, show your passion and the engaging personality you need to win over customers, partners, and employees. Net out the problem and your solution in the first 30 seconds. Pitch your company, not your product. Executive summary glossy. Written business plan.

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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

For much of 2013 I watched the press write articles about how the YouTube “MCNs” (multi-channel networks) were doomed and tried to square that with the data I was watching at the one I invested in, Maker Studios, who has had one hell of a year. Selling at smaller retailers will net you fewer customers and higher margins.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

Startup 418
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Should Startups Care About Profitability?

Both Sides of the Table

I want to understand how many units the company is selling, whether this is increasing over time and how well they’re doing at retaining the customers that they do acquire. Is it one product line or multiple? Do 20% of the customers make 80% of the revenue or do the top 3 customers represent 80% of the revenue.

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