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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

But what IS the right amount of burn for a company? 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. Let’s set up a framework.

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

Both Sides of the Table

It’s nearly impossible to get a services company financed by VCs. And stop effing around trying to create a product company.&#. It would not be a big stretch to image a well run service business like this making 15-25% net profit margins. You’re a small fish. Why Shouldn’t Most Services Businesses Raise VC?

Services 332
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Should Startups Focus on Profitability or Not?

Both Sides of the Table

The most obvious way to explain this is with sales people. If you hire 6 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 for 4-6 months. Are you looking to potentially sell the company in the next year or two?

Startup 418
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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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10 Concrete Steps to Assure Business Innovation

Startup Professionals Musings

Technologists often insist that new things can’t be invented on a schedule, but successful companies seem to be able to do it on a regular basis. Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. Net result and reward. Accountability.

Coach 98
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Ten Principles Which Spell Continuous Innovation

Startup Professionals Musings

Technologists often insist that new things can’t be invented on a schedule, but successful companies seem to be able to do it on a regular basis. Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. Net result and reward. Accountability.

Coach 93
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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

Along with Greycroft Partners we were the first investors in Maker Studios 3 years ago when the company had no revenue and limited infrastructure. I agree with YouTube (that they provide more (hosting, ad sales, etc.) Selling at smaller retailers will net you fewer customers and higher margins.