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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.

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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!” Gross Profit (also called Gross Margin or sometimes “Net Revenue”). One of them is profitability. Simplifying: Revenue -.

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6 Keys to Marketing Customer Experience vs Products

Startup Professionals Musings

A classic article in the Harvard Business Review “ The Truth About Customer Experience ” defines it as your customer’s end-to-end journey with you, not just the key touchpoints or critical moments when customers interact with your organization. One metric now commonly used is called the Net Promoter® Score (NPS). Detractors.

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Entrepreneurs Should Go For The Quick Buck – Then Stop - Initial Business Models Can Be Enticing But Limiting In The Long Run

InfoChachkie

If you haven’t already subscribed yet, subscribe now for free weekly Infochachkie articles! However, in the long run, entrepreneurs always benefit from delivering Maximum Utility for a fair price. Perhaps in part due to its dominant market share, WebEx adopted telecom-style pricing, which effectively penalized their users.

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Increasing Profit Margins By Decreasing Inefficiency

Tech Zulu Event

The net income is calculated by subtracting expenses from the revenue. To increase the net income, management must raise prices, reduce expenses or use a combination of both. When the model is completed, software and machinery may be needed to execute the process. The Bottom Line. Automation. Monitoring.

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VC Confessions: We Passed On Twilio’s Seed Round

InfoChachkie

A version of this article previously appeared on Forbes. If you haven't already subscribed yet, subscribe now for free weekly JohnGreathouse.com articles! Tech Diligence - Consider The Source. Rather, we value entrepreneurs' time and thus our diligence generally includes introducing them to potential customers and partners.

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When to Pay a Premium for Your Company Domain Name

Startup Professionals Musings

Early on, he wrote software to snag expiring names on the cheap. Today there is big money in this aftermarket, where these valuable names are driving prices to new heights. Review my previous article on this challenge – “ Ten Keys to a Killer Name For Your Company.” If the name is perfect, pay the price.

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