Kyle Poyar’s Post

New data around burn rates in SaaS. See you how compare 💰🔥 #saasbenchmarks #cashflow #funding

Cash Burn is spending, expanses. In the early stage, founders have to keep it under control. #SAAS startups become profitable faster if cash burn has to be managed. Below is a study from 700+ SAAS companies and study - Normal Monthly Cash Burn

Don’t know what a burn rate is. Stay out of startups. It’s how fast a startup spends its cash reserves. And it’s probably the reason most businesses have difficulty growing. Because to put in the infrastructure to grow sales and operations costs money.

Great insight by @kyle poyer on what an optimal burn rate is for a startup depending on ARR. Burn rate mapped to growth rate can help founders and growth stage companies understand the optimal time to hire or start layoffs.

Startups are laying off people. It's brutal, but true. Are you a founder? Feel like you're walking a tightrope? Take a breath. We've got this. Here's your survival guide to avoid layoffs and keep your team intact. 1. The Financial Plan. It's your guiding star. Know your revenues, forecast your expenses, project your cash flows. 12 months ahead? Good. 24 months ahead? Even better. 2. Budgeting is your Best Friend. Got funding? Great. Now, don't let it burn a hole in your pocket. Keep an eye on your expenses, adjust when needed. Remember, the budget is your financial compass. 3. Profitability is the Name of the Game. Growth is attractive, but profitability is irresistible. Continuously scrutinize your model, pricing, costs. Your ultimate aim? Maximize profits, secure the future. 4. Don't Put All Your Eggs in One Basket. Single revenue stream? That's a gamble. Explore new markets, engage new customers, launch new products. Diversification - that's your shield in market storms. 5. Resource Allocation - Do it Right. Efficiency is the secret sauce to avoid layoffs. Keep tabs on each team's productivity, each department's contribution. High-impact areas get priority, non-essential costs get the axe. The startup journey is a wild ride, especially managing finances after funding comes in. But remember, as a founder, you're the captain. Navigate wisely. Layoffs? You can prevent them. Your startup's future? You can secure it. Challenges will come, no doubt. But you, founder, you can be prepared. Feeling the heat? I'm here. Together, we can strategize, implement, and steer your startup to financial health. With the right tactics, not only can we keep layoffs at bay, but we can also take down your competition. Let's do this. #startups #layoffs #managingfinances

Let's Navigate Startup Realities today. . . Last week, I had a conversation with friends who opened up a riveting conversation about the intense pressure startups face from VC firms and investors. Their main goal is to boost profits and attain the coveted exit, driving companies toward listing on secondary markets. The initial advice for profitability often leans towards cost-cutting, initiating a series of mass layoffs. However, this notion sparks a significant debate for a crucial reason. 👉 Rethinking Scale and Sustainability: Why embark on excessive hiring if the endgame is aggressive layoffs? It's a reminder that professionals aren't mere placeholders but the architects of growth, tasked with scaling, revenue maximization, and enhancing product quality. 👉 The True Purpose of Hiring: Each role added has a purpose – lightening workloads, amplifying revenue streams, and refining product and service excellence. 👉 Quality vs. Cutbacks A critical concern emerges. If numerous layoffs occur, can a company sustain the quality that defines its offerings? Whether product-centric or service-driven, delivering excellence becomes a formidable challenge. 👉 A Journey of Strategic Growth: In startups, scaling rapidly is imperative. Yet, it must be done responsibly and sustainably. Opt for a frugal strategy that acts as a safety net during testing periods, ensuring all stakeholders are secure. 👉 Balance Beyond Branding: Startup success isn't solely about extravagant branding. It's about channeling resources wisely, cultivating a brand that thrives on genuine value, and avoiding pitfalls. 👉 Crafting a Secure Future: Balancing growth with sustainability shapes a robust future. Strive to minimize the burn rate associated with aggressive promotions. Let's ensure the path ahead is prosperous and pleasant for everyone involved. #startups #startup #entrepreneurship #entrepreneur

#bootstrapped startups right now. But they’ve always been this way. 👉With current inflation at 17-30% level and with market and valuations taking a nosedive, we can expect to see 17-30% layoffs in #venturebacked, #lossmaking companies. 👉This has already begun as we’ve seen reports from some big names. But what’s not visible to everyone is the Department of Labor’s WARN data (Worker Adjustment and Retraining Notification Act) that helps ensure advance notice in cases of qualified plant closings and mass layoffs. A wave of layoffs in such loss-making companies is coming in 2024. https://lnkd.in/dEnVbtmc The cool surfers in the video below who are not waiting for a wave (valuation jump) obviously represent the bootstrapped startups that focused on building a profitable business from the start. #valueovervaluations Credits: Flying_Pixels Welcome to the Jungle.

In today's economic landscape, cost-cutting is a necessity for business survival. Discover essential strategies, including managing layoffs, to ensure your startup's resilience and future success. Tough times demand smart solutions. 🤔 #CostCuttingStrategies #StartupResilience #BusinessSurvival

Embracing Change: Understanding the Realities of Layoffs in Startups 🚀 In the dynamic world of startups, layoffs are a reality, but they seldom happen overnight. Employees often find themselves in a dilemma, questioning why they stay when signs of trouble arise. While loyalty plays a role for some, many continue due to a lack of alternatives or resistance to change. As someone with 12 years of experience in the industry, I've witnessed firsthand the importance of upskilling and staying ahead of the curve. Adaptability is key, especially in environments where uncertainty looms. Let's shift our perspective and stop blaming companies grappling to survive. Instead, let's appreciate their courage in providing job opportunities and fostering innovation. Remember, just as airhostesses advise during takeoff, securing your own mask first isn't selfish—it's necessary for helping others. So, let's be grateful for the chances companies offer to explore our potential and dimensions. Let's support the entrepreneurial spirit driving progress and creating opportunities for those willing to embrace change. #Startups #Layoffs #Adaptability #Upskilling #Gratitude #Entrepreneurship #Opportunities