BU121 Study Guide - Final Guide: Biomimetics, Rand Formula, Collective Bargaining
Document Summary
For all startups: sales forecast, headcount, expenses (fixed and variable), breakeven cash flow. + unique metrics : gross margin, inventory turns, occupancy, qualified leads (acquisition, retention, revenue, viral coefficient) Creation and capture of value: customer acquisition costs (cac) vs. Lifetime customer value (lcv: revenues per salesperson and time to revenue, contribution margin, monthly burn rate. No formula projections based on research and logic: = educated guess you can defend. Market potential does not equal sales forecast: and forecast depends on plan scalability. Sensitivity analysis and contingency plan: assumptions to base sensitivity on, breakeven, largest/smallest/average competitor, similar product launch, capacity, milestones: points that increase valuation of business and/or trigger need for capital, contingency plan. Important for entrepreneurs to keep in mind that all numbers they came up with in their forecast will be challenged: must be prepared to defend them. Narrative assumptions about the numbers for demand, revenues, expenses, and startup costs must be developed.
