The Startup Station Blog

Finance & Strategy | Early-Stage Startups | Company Valuation | Financial Modeling

Financial Modeling Tip: How to Set Your Marketing Budget in line with Your Sales Goals

How much money should I spend on marketing to reach your sales goals? How much is too much? How much is too little? Many startups ask themselves this question as it is key to setting a sales baseline which is realistic, in line with their financial constraints, and which they can defend to...

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Financial Modeling Tip: How to Model VOD Sales

If your startup makes money by renting content on your platform (perhaps a marketplace), you've come to the right place. Please watch our Youtube video for a detailed walk-through explaining how to model sales, even if you are pre-revenue, as well as how to formulate assumptions. Want to learn...

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Financial Modeling Tip: How to Model Sales from a Ticket Marketplace

If your startup makes money by selling tickets on your platform (perhaps a marketplace), you've come to the right place. Please watch our Youtube video for a detailed walk-through explaining how to model sales, even if you are pre-revenue, as well as how to formulate assumptions. Want to learn...

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Financial Modeling Tip: How to Calculate Accounts Receivable

Accounts receivable arise when you extend credit to your customers, typically if you sell BTB. It's important to account for them because if you extend credit you don't get cash when you sell your products which creates an additional liquidity need for you. Please watch our Youtube video for a...

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Financial Modeling Tip: How to Calculate Margins and Burn Rate

Margins and burn rate are key metrics important for every startup. Margins indicate how efficiently you run your business and how susceptible it is to revenue volatility. The burn rate is typically used to describe the rate at which a new company is spending its venture capital to finance...

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Financial Modeling Tip: How to Calculate Customer Service Costs

Nowadays, it's very common to outsource customer service costs to a third-party provider, such as Zen Desk. Please watch our Youtube video for a detailed walk-through on how to estimate those costs as well as (and very importantly) how to formulate assumptions. Want to learn more? Sign up for...

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Financial Modeling Tip: How to Model 3M Subscriptions with 1M Free Trial

The subscription model is extremely popular these days because it implies recurring revenues and more cash flow predictability. It also often has a freemium component to allow users or customers to try a product at first for free. However, it is not always straightforward how to model it...

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Financial Modeling Tip: How to Calculate Sales Commission with a Cap

If you are selling through partnerships or to enterprises, you are mostly likely using salespeople to generate revenue. Do you know how to calculate your sales budget when it comes to salaries and especially commissions, especially if you are pre-revenue? Please watch our Youtube video for a...

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Financial Modeling Tip: How to Calculate Average Recurring Revenue - 3M SAAS

Average recurring revenue is one of the key metrics for every subscription/SaaS business. If you are not sure how to calculate, read on! Please watch our Youtube video for a detailed walk-through explaining how to calculate average recurring revenue for a SaaS business with one-month...

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Financial Modeling Tip: How to Calculate Customer Lifetime Value

Customer lifetime value (CLV) is one of the key metrics for a subscription / SaaS business. It tells you how much money you make per customer overall, or how valuable each customer is to your business. Please watch our Youtube video for a detailed walk-through explaining how to calculate...

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