Loading...
Answers
MenuWill a startup only focused cloud accounting software work that also provides metrics for the startup? What financial metrics would startups use?
I want to create a startup only focused cloud accounting and metric software company. Will it work? Is the market big enough?
Answers
Recently launched Subleger http://subledger.com/ is trying to do some or all of what you describe. It doesn't mean that there isn't room for others but consider that many early-stage companies don't have complex revenue in-flow so the core of what you're describing (converting or merging income into other operational metrics) might not have a wide appeal especially for startups.
Hopefully you get some good answers here but really whatever anyone (myself included) says here is far less valuable than asking startup CEOs what their financial painpoints are with respect to reconciling their app's internal metrics with revenue and expenses.
Finally, the question "is the market big enough" is too open-ended to answer for you. Big enough for what? To attract significant outside funding? Maybe not big enough. But to build a great income for you and a few others? Perhaps!
Happy to discuss this with you further to help you in your evaluation of the opportunity but as I say, best thing to do is canvass the potential market first.
As a CPA/Chartered accountant that's worked in a Big Four Firm, run the finance department at a venture back startup, as well as run my own businesses -- I can confidently say that the only accounting concept that matters for a startup is cash in the bank.
Specifically, how much is there and how quickly is it running out. Everything else really is a distraction as it doesn't matter: when a ship is sinking, you don't care about GAAP compliance.
Metrics matter more for revenue than expenses, which is why this forces the market to be for later stage companies. And those later stage companies have multiple offerings from the mature accounting and management reporting market.
I mentor startups in the product management process so they can make better decisions.
Quite frankly, you are asking the wrong questions. What accounting problem are you going to solve for startups? Without knowing this and verifying it with people that would be potential customers, you can't possibly know whether or not your vision of the solution will work.
I will go one step further and warn you that feedback you get on here about whether or not it will work should be taken with a grain of salt. Always beware of second hand customer validation information. If you need some help getting first hand information, I expect that I can help point you in the right direction.
Cheers and good luck!
A start-up cannot sustain value creation if its most basic and key metrics do not add up. If you are starting a new venture, this is probably all that you are thinking about, turning your vision into reality by building a start-up product that solves customers’ problems and is worthy of their financial commitment. Your KPIs can change as your start-up grows. For instance, when you launch your start-up, new registrations or activations can be an important KPI to evaluate the validation of your start-up idea and viability of the solution in addressing your customers’ needs.
LTV or lifetime value of a customer is the revenue that a customer can generate for your startup over the lifetime of their membership. CAC or customer acquisition cost is the money that you spend on acquiring a customer. CAC includes your expenditure on sales, marketing, and distribution activities.
You can read more here: https://www.forbes.com/sites/abdoriani/2020/12/21/9-basic-financial-and-analytics-metrics-every-startup-founder-should-know/?sh=74affacb41a5
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Related Questions
-
Is it possible to pre-sell and enterprise grade saas product without building it? Ie with design only?
Yes, I did exactly that a few years back. A friend of mien and I launched a site with minimal functionality that was really just a landing page. We offered the opportunity to pre-buy a year's subscription to the service by allowing users to set their own pricing. Within the first 24 hours of the site going live, we had enough paying customers to validate the business and inform our iterative development cycle. Ultimately, we decided it wasn't a big enough business for either of us to get really excited about but it proves that it can be done. I also did that in my current business with a landing page that generated literally thousands of leads and hundreds of very qualified customers, which resulted in paid pilot contracts before the software was fully built. Build something that people actually *need* and you'd be surprised at what they're willing to do to get early access to it. Happy to talk about it in a call in more detailTW
-
How do we log the inital funding of a C-Corp with funds from the owner's personal account in Quickbooks?
When you open a bank account for your corporation, you'll need to make an initial deposit with your personal funds. A shareholder's initial contribution can be recorded as either debt or equity. If you want to record the initial contribution as equity, you would debit cash for the amount deposited into the bank account, and credit an equity account, such as “shareholder’s equity” or “capital stock”. Alternatively, you can record the deposit as a shareholder loan. Debit cash for the amount deposited, and credit a liability account, such as “Loans from Shareholder”. There are also methods to bifurcate the contribution by recording a contribution as a combination of debt or equity.JK
-
What is the average pre-money valuation of a enterprise/SaaS stat-up that is pre-revenue?
There is no valuation until you sell something. An idea or a company is only worth what its sales are. Once you have your initials sales, sales strategy and forecasting length (ie 9 months from first customer lead to close) then you have a formula for valuation. Valuation for start-ups is generally 3.5 x last years sales model should be the growth factor. When you are looking for investors, you will want to have atleast 9-18 months of SALES, not just pipeline and they will be looking at 5x revenue for a 3-5 year payback.TP
-
Should I collect NY sales taxes for online marketing and web development services offered to NY clients?
Generally, the transfer of tangible personal property is the trigger for a sales tax event. In this case, it may be necessary to review the various aspects of a typical transaction to determine if any portion thereof would be subject to sales tax. However, generally speaking, receipts from the sale “Marketing”, "Media Placement Services" and "Web Site Networks" are not subject to State or local sales and compensating use taxes provided your organization does not sell or otherwise transfer any tangible personal property to its clients in conjunction with these activities or perform any services otherwise taxable under Section 1105(c) of the Tax Law in conjunction with these activities. (See, Advertising Agencies, Technical Services Bureau Memorandum, June 10, 1983, TSB-M-83(16)S. For additional guidance, you may also want to refer to Publication 750, A Guide to Sales Tax in New York State http://www.tax.ny.gov/pdf/publications/sales/pub750.pdf. I hope that you find this information useful. Shawn Powell Joseph Reference TSB-A-97(43)sSP
-
Are there standard ratios that are used to calculate first level support staff needed for a SAAS product that is a non-technical product?
Hi. I'm a Business Intelligence consultant with most of my customers being call centers. There are definitely guidelines you can apply but it will be based on several factors. Your question references ratios, which I assume means you would like to know how many agents per customer. That number will vary greatly depending on a number of other factors including: -what is your ASA target (Average speed of answer)? -what percentage of calls should meet the ASA? -are their penalties below a certain threshold (if less than 80% of calls meet ASA in 24 hours, for example) -how long are calls waiting when they don't meet ASA? -what is the call distribution by day of week, time of day and holiday v. non-holiday. -what is the average call duration? -what is the % of calls requiring escalation or call back versus calls resolved on first contact? To simplify it though, the two most important (IMO) will be call volume and your target for ASA (assuming you aren't answering then putting them back on hold, etc). To simplify though, the top 3 are: ASA, Call length and call volume. Regardless of the size of customer base. A good reporting system that combines live metrics and daily/weekly/monthly analysis will help a great deal. Feel free to set up a call if you'd like to talk about this in more detail.RL
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.