Both Sides of the Table
DECEMBER 27, 2011
If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. So your Q1 results will be $180,000 less profitable than if you hadn’t hired them. Hiring more people isn’t always the right answer.
Both Sides of the Table
MARCH 25, 2016
Most of this advice boils down to an argument in favor of basic planning before starting a company or raising money. In many ways the fact that it has become so cheap to start a company and relatively cheap to raise angel/seed money that we as an industry have gotten lazy on basic planning. Incumbent Strengths & Weaknesses.
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Both Sides of the Table
MAY 13, 2013
But the press (and I suspect many of the senior execs of these companies) don’t really explore the corrosive downside of these acquisition. If I don’t commit to millions of dollars of acquisitions I will … die? The Aqui-hire Business. Let’s assume $2 million in seed money. Go do a startup.
Both Sides of the Table
JUNE 17, 2017
If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth.
Version One Ventures
SEPTEMBER 8, 2014
With the influx of seed money, much has been written about the fact that start-ups that are taking far more funding than they need. At the beginning, it’s important to do things that don’t scale, especially when it comes to customer acquisition. As Paul Graham said , “startups take off because the founders make them take off.
Both Sides of the Table
NOVEMBER 18, 2012
Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. You hire them, you own them now. Hire fast, fire faster. And it’s why you probably will quit on day 366 after the acquisition. Many times it’s less.
Version One Ventures
SEPTEMBER 8, 2014
With the influx of seed money, much has been written about the fact that start-ups that are taking far more funding than they need. At the beginning, it’s important to do things that don’t scale, especially when it comes to customer acquisition. As Paul Graham said , “startups take off because the founders make them take off.
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