Both Sides of the Table

SEPTEMBER 28, 2014

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

Startup Company Companies .Net 383

Startup Professionals Musings

OCTOBER 8, 2022

In reality, a simple Excel spreadsheet model customized around your assumptions can save you hours and avoid a wasted expense in validating alternative vendor and marketing decisions. Vendor costs are subject to change, customers are fickle, competitors come out of the woodwork and the economy can take a downturn. Marty Zwilling.

Startup 147

Startup Pricing Sample Customer 147

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And just for measure, VC’s fund less than 2% of all deals they do investigate. For you who fit that description, nice work.

Venture Capital 266

Venture Capital Class Invest Equity 266

Both Sides of the Table

DECEMBER 27, 2011

To grow faster businesses need resources in today’s financial period to fund growth that may not come for 6 months to a year. The most obvious way to explain this is with sales people. You may have leverage when you DO need to fund raise. Gross Profit (also called Gross Margin or sometimes “Net Revenue”).

Startup 418

Startup Venture Capital Sales Technical Review 418

Startup Professionals Musings

JANUARY 6, 2020

In reality, a simple Excel spreadsheet model customized around your assumptions can save you hours and avoid a wasted expense in validating alternative vendor and marketing decisions. Vendor costs are subject to change, customers are fickle, competitors come out of the woodwork and the economy can take a downturn. Marty Zwilling.

Startup 123

Startup Pricing Sample Customer 123

Both Sides of the Table

JUNE 17, 2017

To grow faster businesses need resources in today to fund growth that may not come for 6 months to a year. The most obvious way to explain this is with sales people. They don’t want high burn rates but they will never fund slow growth. COGS” represents the amount that each sale costs you.

Startup 227

Startup Venture Capital Sales Course 227

Both Sides of the Table

APRIL 25, 2011

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

Services Venture Capital IP Startup 332

TechCrunch LA

MAY 19, 2020

These are companies like the recent Y Combinator graduates Homestead and Rent the Backyard and United Dwelling, which has just raised $10 million in funding from investors including Lightspeed Venture Partners and Alpha Edison. “Garage conversions were a new concept for us,” Martin McCauley told Curbed Los Angeles.

Los Angeles 191

Los Angeles Startup Culver City .Net 191

Berkonomics

APRIL 10, 2014

Often, the lender then tracks the pledged assets until money is received or inventory sold, expecting repayment from the proceeds of sale. This type of funding is great for startup companies, refinancing existing loans, and financing for growth, mergers and acquisitions. An asset-based lender finances the purchase of the raw material.

Report 166

Report .Net Customer Custom 166

Startup Professionals Musings

SEPTEMBER 30, 2011

Two founders have spent $200K of personal and family funds over a one year period to start the company, get a prototype site up and running, and have already generated some “buzz” in the Internet community. Early customers and contracts in progress add value. NewCo doesn’t have any of these yet.

Funding 98

Funding Startup Patents Outsource Development 98

Startup Professionals Musings

MARCH 1, 2010

Self-funding from your savings is the preferred source of cash for your startup – if you have it. After bootstrapping, friends and family are the most common funding sources for early-stage startups. Use this approach before you have a real valuation, a real product, or any real customers. Commit to a major customer.

Funding 59

Funding Startup Technical Review Equity 59

Tech Zulu Event

SEPTEMBER 11, 2013

Senate on May 6 passed the third version of Senate Bill 743, otherwise known as the Marketplace Fairness Act, which requires consumers to pay sales tax on all Internet purchases. Initially, it affects reward-based crowdfunding because the moment anyone takes money in exchange for an item, the transaction becomes subject to sales tax.

Sales 102

Sales Course .Net Capital 102

Startup Professionals Musings

MAY 14, 2012

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. A target market is the group of customers that the startup plans to attract through marketing and sales their product or service. Sales/Marketing.

Sales 97

Sales Customer Custom Outsource 97

Tech Coast Venture Network

APRIL 22, 2010

With rare exception, you will need to finance personally (or with friends and family to the point of revenue and/or significant customer pre-order or commitment). In order to qualify, you have to have high net worth, a strong credit score and significant skin in the game. Friends and Family. Traditional Bank Loans.

Startup 124

Startup Tech Coast Angels TCVN Incubator 124

Startup Professionals Musings

AUGUST 1, 2013

The sad truth is that cash flow surprises kill many startups, even though they should have been adequately funded to survive. Seasonal sales fluctuations eat cash. Fluctuating sales means more inventory is required to cover the ups and downs. On the other side, your new customers expect a free trial period.

Startup 114

Startup Sales Layoffs Slides 114

Both Sides of the Table

NOVEMBER 3, 2009

It should talk about how many customers you think you will acquire and how much you’ll charge for your product. Do you really want to spent $100k building a product to discover through Customer Development that the market is too small? I care about the thought that you’ve given to the customer problem.

Web 2.0 334

Web 2.0 Venture Capital Web Technical Review 334

Tech Zulu Event

MARCH 7, 2013

CapLinked also netted in new customers such as Thomson Reuters, Sun Capital, and Equity Partners, NextView Ventures and crowd-funding service AI Verified which will take advantage of its iPad compatibility, bulk uploading, and reporting tools. According to Eric M.

Mobile 91

Mobile Report Pricing Tool 91

InfoChachkie

JULY 11, 2011

In the past, venture debt was often viewed as a funding vehicle of last resort. The nature of the company’s business model requires it to fund certain costs before it is paid by its customers. Thus, even though the company is cash flow positive, its growth is constrained by the amount of payables it can fund.

Equity 235

Equity Startup Invest Funding 235

Startup Professionals Musings

JANUARY 29, 2011

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. A target market is the group of customers that the startup plans to attract through marketing and sales their product or service. Sales/Marketing.

Sales 98

Sales Customer Custom Outsource 98

Startup Professionals Musings

JUNE 25, 2012

Self-funding is the preferred source of cash for your startup – if you can do it. After bootstrapping, friends and family are the most common funding sources for early-stage startups. Use this approach before you have a real valuation, a real product, or any real customers. Commit to a major customer. Angel investors.

Technical Review 103

Technical Review Equity Incubator Venture Capital 103

socalTECH

JULY 10, 2017

What we typically see when we implement or test our scores against applications they have previously funded and taken a loss on, is that we could have reduced net chargeoffs from 40 to 60 percent. Tim Grace: We were quite busy even before the funding. You've done this before in other industries--what led to new company?

Artificial Inteligence 124

Artificial Inteligence Software Review San Diego .Net 124

Both Sides of the Table

JANUARY 5, 2010

They often make great team members such as head of products, CTO, head of sales, CFO, etc. If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? I’ll help you raise the fund. Why should I be?

Entrepreneur 293

Entrepreneur Startup Venture Capital CTO Hire 293

Startup Professionals Musings

NOVEMBER 3, 2014

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Despite all the focus you hear on external investors, over 90% of startups today are self-funded. Despite all the focus you hear on external investors, over 90% of startups today are self-funded.

Organization 111

Organization Startup Summary Entrepreneur 111

Startup Professionals Musings

JANUARY 17, 2016

Seasonal sales fluctuations eat cash. Fluctuating sales means more inventory is required to cover the ups and downs. It could be a natural disaster, like a flood or wind storm, or loss of key personnel, equipment failure, or a major customer complaint on the Internet. Even good customers don’t always pay on time.

Startup 64

Startup Sales Layoffs Slides 64

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds.

Venture Capital 174

Venture Capital Invest Class Entrepreneur 174

Startup Professionals Musings

JULY 15, 2013

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Unless your volumes are in the millions or higher, the difference between manufacturing cost and customer price better be 50% or greater.

Startup 95

Startup Pricing Statistics .Net 95

Startup Professionals Musings

AUGUST 14, 2015

Funding is only one of the critical resources you need to start a business. Maybe more important, you need domain knowledge, relationships and lots of potential customers. Common financial metrics include burn rate, gross margin, revenue growth and net profit. Calculate and manage your financials.

Startup 101

Startup Metrics Resource Mentor 101

Startup Professionals Musings

MARCH 16, 2011

Self-funding is the preferred source of cash for your startup – if you can do it. After bootstrapping, friends and family are the most common funding sources for early-stage startups. Use this approach before you have a real valuation, a real product, or any real customers. Commit to a major customer. Angel investors.

Startup 93

Startup Technical Review Equity Incubator 93

Startup Professionals Musings

JUNE 9, 2012

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Unless your volumes are in the millions or higher, the difference between manufacturing cost and customer price better be 50% or greater.

Startup 95

Startup Statistics Pricing .Net 95

Startup Professionals Musings

JANUARY 8, 2013

Almost all angel investors are “high net worth” individuals who made their money running a successful business in your domain, and they will mentor your team as well as demand the discipline you need to make your business work. Customer service. High-travel sales and buyer positions. Retail sales to Gen-X and Gen-Y.

Startup 98

Startup Mentor Demand High Tech 98

Startup Professionals Musings

OCTOBER 12, 2010

You can also use this space to keep track of innovators (R&D personnel) and rainmakers (sales & marketing personnel). Customers: A company’s only sustainable source of cash is sales, so you need to keep track of your business development efforts. Detail isn’t important; tracking your progress is. His website is [link].

.Net 89

.Net Metrics Competition Template 89

socalTECH

AUGUST 8, 2016

Mike Mothner: The business today, is we are a digital agency focused on customer acquisition and growth for businesses of all types. Our clients are everyone from fast growing, freshly funded startups, to the Fortune 100. If it's a digital channel, and there are customers to connect with, we are looking to help those companies grow.

Acquisition 100

Acquisition Paid Search El Segundo SEO 100

Startup Professionals Musings

JANUARY 10, 2013

This costs nothing, and allows you to safely collect money from customers all around the world. Customize your website using one of the tools above, selecting one of the standard templates for design and layout. The next step in complexity is building a software product that you can offer as a service to your customers.

Sites 78

Sites Commerce Startup Tool 78

Startup Professionals Musings

NOVEMBER 26, 2012

Two founders have spent $200K of personal and family funds over a one year period to start the company, get a prototype site up and running, and have already generated some “buzz” in the Internet community. Early customers and contracts in progress add value. NewCo doesn’t have any of these yet.

Startup 108

Startup Invest Patents Outsource Development 108

Startup Professionals Musings

NOVEMBER 18, 2011

This costs nothing, and allows you to safely collect money from customers all around the world. Customize your website using one of the tools above, selecting one of the standard templates for design and layout. The next step in complexity is building a software product that you can offer as a service to your customers.

Commerce 99

Commerce Startup Sites Tool 99

Startup Professionals Musings

MARCH 22, 2011

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Unless your volumes are in the millions or higher, the difference between manufacturing cost and customer price better be 50% or greater.

Startup 92

Startup Statistics Pricing .Net 92

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. Our goal is to produce a $10 billion+ winner and remain the market leader in this SaaS category of AI in Sales & Marketing.

Venture Capital 363

Venture Capital Capital Funding Startup 363