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If you’re lucky enough: Celebrate your exit!

Berkonomics

You no longer need to worry over daily cash or threats to your net worth. To celebrate with your customers, who worry over continuity and look to you for assurances that the transition will not negatively affect them. Others are diluted by subsequent investors to the point where there was nothing for them to celebrate at all in a sale.

Writing 156
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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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6 Ways To Improve Your Chances Of New Venture Success

Startup Professionals Musings

To turn your passion into profits, emphasize the market, and always think about your business relative to the customers you serve. Know your markets and execute on your market opportunity by placing a priority on your customer’s experience and perception of value. Ensure that your passion adds up. Execute with focused flexibility.

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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!” The most obvious way to explain this is with sales people. Gross Profit (also called Gross Margin or sometimes “Net Revenue”).

Startup 418
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Should Startups Care About Profitability?

Both Sides of the Table

The most obvious way to explain this is with sales people. If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. COGS” represents the amount that each sale costs you.

Startup 227
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Entrepreneurs: Take the time to celebrate your exit.

Berkonomics

Email readers, continue here…] First there comes a sense of relief, knowing that you no longer need to worry over daily cash or threats to your net worth. To celebrate with your customers, who worry over continuity and look to you for assurances that the transition will not negatively affect them. Write a book; I did.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

Your historical trading information including financials and a “customer file” which shows the history of your transactions so that investors can run “cohort” analyses Customer reference, personal references, key team members, compensation, cap table, stock option plan, etc. and then asking to take a brochure home with you.

Funding 336