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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

In a world where the economy only heads in one direction (read: 2009-2014) most investors & entrepreneurs forget to pay attention to gross burn. This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%.

Startup 383
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Roping in the Legal Eagles

InfoChachkie

Yet, despite his exceptional courtroom theatrics, you would be foolhardy to hire good old Johnnie to review your software cross-licensing agreement. It is surprising how often entrepreneurs forget this simple fact. Your lawyer is a trusted advisor, but in the end, you run your business, your lawyer does not.

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Most Common Early Start-up Mistakes

Both Sides of the Table

I often talk with entrepreneurs who are kicking around their next idea. To the best of my knowledge US law allows you to work on your own resources and in your own hours and let you personally own your IP. It you have a great software engineer that’s awesome. Make sure you own your IP. Register a company.

Startup 365