Remove advice
article thumbnail

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
article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

When they look at buying your company they often think in terms of “how long will it take until I earn back the profits to pay for my acquisition price?” As I like to say, “If you’re really on to an enormous idea then other people in the market are going to spot that and want to compete with you.

Startup 418
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Are Business Plans Still Necessary?

Both Sides of the Table

This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. The last couple of years has also seen the huge initial success of Ycombinator, the Lean Startup and many other product driven approaches to going to market. Do so at your peril.

Web 2.0 334
article thumbnail

How Do you Motivate Yourself and Stay Focused?

Both Sides of the Table

You might net $1 million and that would change your life. Now I just have a 3x higher exit price if I want to sell one day. In hindsight we know the market was sure there (whether or not we would have captured it is a different story). Startup Advice' If you don’t you may have to lay off staff in eight weeks.

News 405
article thumbnail

Interview with Greg Martin, LiquidStock

socalTECH

Grega longtime veteran of venture investingalso shared his thoughts on the current pandemic, how investors are viewing the current market, and what startups can do now to survive through these unusual times. We, as investors are aligned, because when we exercise stock, we are providing capital to the company in terms of the exercise price.

Startup 113
article thumbnail

What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

They wanted advice. I gave them advice I don’t think they were expecting from a VC, “Don’t raise venture capital for this business. It is advice I give entrepreneurs often as I have written here on why most businesses should never raise VC. This team is talented. And probably some money. This is a huge mistake.

Services 332
article thumbnail

‘Do-It-Yourself’ Startups Have Never Been Easier

Startup Professionals Musings

Now the price is closer to $100 if you are willing to do the work yourself. Now the real work begins – promotion, marketing, blogging, and all types of search engine marketing. I give this advice all the time – “launch fast and iterate.” Publish the site and now you are in business.

Startup 100