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Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
Startup Financial Blueprint Design-Chris J Snook
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Startup Financial Blueprint Design-Chris J Snook

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Chris J Snook mentors the 25 startup founders in the Denver Chapter of @founding Founders Institute on Revenues, Costs, Profits and things to consider when building out their revenue model and …

Chris J Snook mentors the 25 startup founders in the Denver Chapter of @founding Founders Institute on Revenues, Costs, Profits and things to consider when building out their revenue model and assumptions

Published in: Business, Economy & Finance
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  • 1. Revenue, Costs and Profits Mentor Session Denver 8/20/13
  • 2. Key Categories for your P&L Category Inputs Things to Consider/Monitor Revenue Sources Recurring, One-Time, Installment, Subscription, Royalty, etc Do you have a healthy Revenue/Profit Center mix i.e. LinkedIn or are you a 1 trick pony? COGS Merchant Fees, Sales Commissions, Materials/Ingredients, Royalties Less is better if you can design it that way Gross Profit This is your usable cash (Revenue doesn’t matter) Divide your SG&A total/GP% to understand your breakeven (i.e. $50,000 per month in SGA/.75= Breakeven of $66,667 per month Revenue) SG&A Salaries, fixed overhead, insurance, etc. Keep it lean EBITDA This is your excess cash flow and operating margin You bootstrap from this number and create your reserves or organic growth line from here
  • 3. Costs in the Startup World Managing costs is really managing opportunity, constraints, and accretive activities.
  • 4. Bottom’s UP • DO Address the unit economic value of your offer and how much it costs, converts, and yields and what it takes to get one. • DON’T project market size and the percentage you think you can capture.
  • 5. Solve Really Big Problems Better • Can we solve “_____” problem in a new way? • Can we get enough people to pay us to solve it for them? • Can we get to economies of scale quickly enough? • What does it cost when not at scale and is it investable? • Will we pave a new road that we can “own” or merely cut down the heavy brush for a future competitor to speed past us?
  • 6. Examples to consider
  • 7. Revenue “Revenue solves most problems over time because it buys you time; and although revenue is a great validator it can be worthless when costs are un-managed” ~CJS
  • 8. Costs “Competition is the keen cutting edge of business, always shaving away at costs.” ~Henry Ford “In life, the first thing you must do is decide what you really want. Weigh the costs and the results. Are the results worthy of the costs? Then make up your mind completely and go after your goal with all your might.” ~Alfred Montapert
  • 9. Profits “A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.” Henry Ford
  • 10. Remember: Numbers are Sensitive CHALLENGE YOUR ASSUMPTIONS MULTIPLE WAYS…TEST, REPEAT, TWEAK, and MASTER THIS!!!!!
  • 11. FIND ME @chrisjsnook And www.chrisjsnook.com Slides available at www.slideshare.net/chrisjsnook

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