Don't start your business without one.
Don't start your business without one.
If you've ever been to a startup event, you'd be awed by the intriguing ideas entrepreneurs come up with - revolutionary jumps that change the way we think about the world, or small incremental ideas that make us relearn everything we know about friends, work, or even coffee. It's pretty hard not to be awed. But for all their brilliance,
Added by Jons Janssens: “Funding is a tool not a goal. It's used to achieve a goal; a sustainable business model.”
Marc Andreessen posted a tweetstorm last week and he talked about how to think about seed financings and how they lead into Series A and Series B rounds. Feature request for Twitter: Please make it possible to permalink to and embed a tweetstorm. You can call this the @pmarca feature. I replied to item 6/ of his tweetstorm: @pmarca I
The popular view of a real entrepreneur is someone with a big vision, and a stubborn determination to charge straight ahead through any obstacle and make it happen. The vision part is fine, but successful entrepreneurs have found that the extreme uncertainty of a new product or service usually requires many course corrections, or "pivots" to find a successful formula.
Tuesday, August 05, 2014AH PERFECTION: Strange, but the most popular, the most widely-requested, and the most widely quoted piece I've ever written was not about the stock market -- it was about business, and specifically about what I call the theoretical "ideal business." I first published this piece in the early-1970s. I repeated it in Letter 881 and then again
Added by Jons Janssens: “Clear overview of revenue models you can apply to the asset you are building.”
MANAGING THE DIGITAL ENTERPRISE * MICHAEL RAPPA B usiness models are perhaps the most discussed and least understood aspect of the web. There is so much talk about how the web changes traditional business models. But there is little clear-cut evidence of exactly what this means. Type of Model: Description: Brokers are market-makers: they bring buyers and sellers together and
As a B2B company, you want new customers and increased market share. Salespeople can help you achieve both objectives, as long as you don't hinder them with poor pricing plans. Here is some advice to help you establish a successful and scalable sales strategy. 1. Get Rid of Free PlansDon't hamstring your salespeople with free plans. If you're selling a
Added by Jons Janssens: “Interesting insights by Mr. Clayton Christensen (writer of The Innovator's Dilemma)”
Added by Jons Janssens: “How to build a scalable business.”
When a business model has the potential to generate growth in revenues significantly faster than its cost base, the business model is scalable. As growing revenues increases the operating margin, scalable business models have the potential for earning very high profits. The key to scalable business models is to have small Costs Of Goods Sold (COGS), and to get a
Best practices for inside sales managers. An interview with Mark Roberge, VP of Sales at HubSpot, discussing how he blends science and process with the art of selling. HubSpot is a SaaS company selling Inbound Marketing software. HubSpot has grown revenue over 6,000% in the last four years, placing them #33 on the Inc 500 fastest growing companies list. They
In 2009 I released the version of " The Reality of Freemium in SaaS " PDF and since then the "Freemium" landscape in SaaS has continued to evolve rapidly. Freemium use in B2B technology / software / SaaS / Web Apps / Cloud (whatever) is evolving and I wanted to take note of where we are at today... where we'll
It's easy to love the SaaS business model, especially with the all the recent hype. Integrated mission critical software, high margins, recurring revenue, growing industry, and exit multiples based on revenues. It's no surprise that venture funds and private equity funds are racing around to find the next Salesforce.com. But not all SaaS businesses are built equally. Bill Parcells, the
Added by Jons Janssens: “Envision your end goal. Essential to get this clear before you start.”
This post follows a talk I gave at a Mobile Apps and Beer event a couple of weeks ago (another outcome of that talk is my former post Should we meet pre-traction?). The subject of my talk was financing vehicles for mobile apps, and one of the key messages that I was trying to get across was that as an
In the comments to last week's Burn Rate post, I was asked to share some burn rates from our portfolio. I can't do that. But an alternative suggestion was to write a post suggesting some reasonable burn rates at different stages. I can do that and so that's the topic of today's post. The following applies to software based businesses,
February 2008 The fiery reaction to the release of Arc had an unexpected consequence: it made me realize I had a design philosophy. The main complaint of the more articulate critics was that Arc seemed so flimsy. After years of working on it, all I had to show for myself were a few thousand lines of macros? Why hadn't I
March 2005 (This essay is derived from a talk at the Harvard Computer Society.) You need three things to create a successful startup: to start with good people, to make something customers actually want, and to spend as little money as possible. Most startups that fail do it because they fail at one of these.
I'm a big fan of the Lean Startup movement and love the underlying principle of testing, learning, and pivoting by experimenting with the most basic product prototypes imaginable - so-called Minimal Viable Products (MVP) - during the search for product-market fit. It helps companies avoid building stuff that customers don't want. Yet, there is no underlying conceptual tool that accompanies
Editor's note: This is a guest post by Andrew Montalenti. Andrew is the co-founder and CTO of Parse.ly, a technology startup that provides big data insights to the web's best publishers. He blogs at pixelmonkey.org, where this post originally appeared. You can follow him @amontalenti on Twitter. Startups die due to a variety of causes. Over the course of the
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Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. Except, they lost $35m. WTF? It's not impressive when you spend $1.60 for every $1.00 of revenue, force-feeding sales pipelines with an unprofitable product. Don't tell me this is normal for growing enterprise SaaS companies. I know the argument: The pay-back period on sales,
Lots of people talk about business models these days, but what does it really mean? When it comes to starting or planning for business success your model is essentially your decision about how you intend to add value - which is another way of saying - how you intend to make money. Business is a pretty simple thing really, but
I spoke at McGill twice last week, once on Lean Analytics, and once on the consequences of Big Data for society. It was a lot of fun; it's always good to filter the high-minded prognostications of the middle-aged through the inattentive ears of the young. As often happens, one student asked me where I thought tomorrow's hot tech startups would
When should you follow up with online prospects? For example, if you run a SaaS business that demos products, how quickly should you follow up with customers who ask for a demo? In the first five minutes? Within the hour? Within a week? What's the optimal time? These questions are even more important with the current, prevalent online selling process.
by Walter Chen When we launched a paid version of iDoneThis, we held our breath - we didn't know if a single person would sign up. The waiting, the sweat, the nerves. Finally, the whoosh of a collective sigh of relief. One trailblazer of a person signed up for iDoneThis and put their credit card down. Amidst all that "will
Added by Jons Janssens: “I don't completely agree. It's a matter of choice, but if you are not in hyper growth, you do need a business model. But this is a nice overview.”
Roughly a year ago, Facebook bought Whatsapp for $19Bn. When I heard, my first reaction (as it was for many others) was, "What!!! 19 billion? 380 million per employee. And they don't even have a proper business model!". And this was after Evan Spiegel of Snapchat (poster-boy of the business model-less) refused a $3Bn offer from Facebook. Today, their search