Jul 4 2007 by Brad

Did You Make Your Expense Plan?

My partner Seth Levine has today’s VC blog post of the day titled You’re burning too much money.  While early stage companies often miss their revenue plan, there’s no particularly good reason why they should miss their expense plan since they have 100% control over it.  However, some do, while others set it way too high.  Seth has some good parameters for web/internet/software businesses at various stages in their life.  Appropriately, he focused on “net burn” (where burn = actual change in cash month to month.)  For the actual parameters he finds useful, click through to his post (gotta leave something in there for you want to go to the post for.)