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Run Your Business for the Present

Entrepreneurs' Organization

Build people up “So, to me, if I don’t have good employees, or if I don’t even have enough employees on a given day, my business does nothing,” Monish says. Turnover in Monish’s franchises is low but, even better, there are rags-to-riches stories that echo his own. I’m not worried about customers — they will come.

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Build a bottom-up financial model to show potential investors you’re serious

TechCrunch

As a founder, it’s your responsibility to never lose sight of your “runway” – how long before you run out of cash – which is calculated by dividing your cash-on-hand by your monthly burn rate. For example, does the business have enough runway, even if you only achieve half of your expected revenue – or no revenue?

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Could you achieve ten percent net income each month?

Berkonomics

Then they calculate cost of sales, and then project their expenses, to find the bottom-line profit or loss each projected month. Compare that with the operating profit as calculated, which surely will be lower, probably negative, for months or even years. How planning is done today. One way to think for tomorrow.

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The right questions to ask investors when fundraising in a down market

TechCrunch

8 steps for building a financial model to calculate your fundraising needs. A founder’s guide to calculating CAC and LTV the right way. For both first-time and experienced founders, a proper fundraising toolkit can make or break a successful round — even more so in a down market. So what are those tools?

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Founders Are Raising Too Much Money, Here’s What They Should Do Instead

Entrepreneur's Handbook

Here’s What They Should Do Instead How to calculate if, and what, you actually need to raise Photo: Unsplash The road to closing a fundraising round is dark and full of secrets. Headlines are full of record-breaking fundraises and unprecedented valuations, but sometimes the numbers make you wonder. Or at least, it can feel that way.

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Economics 101: If water flows downhill, then why fight it?

Berkonomics

Solar panel installations break even only after over years of use, even with subsidies offered by the electric companies or by the Federal government. When subsidies stop, the economic break even will decrease to a few years as mass acceptance becomes real. Most of us want to do well for the environment.

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Metrics 101: How to Define and Track Metrics

Entrepreneur's Handbook

The biggest danger I see in growing $1M — $5M ARR companies is that they have something that works; they mistakenly break it and don’t realize it for many months. What Subscription Products Should Be Measuring This is a basic hierarchy of metrics that the majority of subscription products can use, which breaks into 3 core categories.

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