5 {{ upvoteCount | shortNum }}
5 {{ upvoteCount | shortNum }}

What is your BURN rate?

by Shoot
3 replies
So the other week I was sitting in a meeting with a client and group of potential investors when my client was asked this.

"You already lost one partner and your the only one left in the company what is your burn rate on this?"

He had lost his org partner in 4 months now at 7 months the project is just at the tipping point but the investors could tell he was burning out fast and the big thing keeping them from investing was can he see it though still... He timidly said 1 year.

So now 3 weeks later he has burnt out.. Just about gave up offered me the company and I should have just bought him out. I instead told him to tell me his real burn rate and he told be the first or second week he was ready to give up and just has been on auto pilot since then. But he really knows he has something valuable and had no idea the amount of work that goes into building and company, product, and brand. Then realizing that needs to be marketed and that is even more work. I basically told him to **** or get off the pot.

I am interested to see his true burn rate...

If your idea doesn't pan out how you thought it would how long till you jump ship?
#burn #rate
  • Profile picture of the author Jon Patrick
    I try to put most of my efforts these days into building assets. For example, when I was selling on eBay, there was no asset involved. But when I created a website to sell the same things, I then had an asset on my hands. When you spend your time building assets, the effect is cumulative - you can then build on the work you've done previously, instead of always running on a hamster wheel.

    The reason I say this is because this strategy has made a serious difference in how I approach your question. When I was doing "hamster wheel" work and a project didn't start to produce revenue within a reasonably short period of time, I had to move on to other things, at which point the project would cease to exist. Now, when a project doesn't pan out immediately, the asset continues to exist - I can return to it later and continue to build on my previous work.
    {{ DiscussionBoard.errors[5488677].message }}
    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Jon Patrick View Post

      When you spend your time building assets, the effect is cumulative - you can then build on the work you've done previously, instead of always running on a hamster wheel.
      This ^^^ exactly.

      I think what you're calling "hamster wheel work" here (been talking to Kevin Riley, recently?) is what many Warriors refer to as a "rinse and repeat" process: in other words, it never develops any residual asset or income. It isn't really a business, per se, at all. It's just an activity in itself, which is either paid or unpaid. And as you rightly say, this is highly relevant to the OP's question.
      {{ DiscussionBoard.errors[5488891].message }}
  • Profile picture of the author Shoot
    That is always smart, I have a ton of fall back "Assets" as you call it that are 90% ready, I just found a more lucrative offer and pursued that not really giving up on that idea but just following the $$$. If times get slow I have lots of things to go back to that are just ready to be polished. But I am sure most will never come to be or will be surpassed by someone elses work.
    {{ DiscussionBoard.errors[5488823].message }}

Trending Topics