Startup Professionals Musings

SEPTEMBER 1, 2012

This strategy is called “organic growth,” yet it alone may yield only a fraction of the potential you could achieve, unless you add the additional strategies of partnerships and M&A (mergers and acquisitions). Actively pursue mergers and acquisitions. Overreliance on acquisitions drains resources and de-motivates internal teams.

CTO Hire 229

CTO Hire Fractional CTO Merger Non-Compete 229

Startup Professionals Musings

MAY 25, 2020

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Yet it is an opportunity for you and your investors to cash out.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

NOVEMBER 7, 2016

Key operational and pivot decisions require corporate approval. In enterprises, performance objectives are usually tied to internal processes, rather than beating competitors, customer acquisition, and revenue growth. Corporate entities operate under strict competitive and accounting rules. Every such deal was an exception.

Technical Review 214

Technical Review Entrepreneur Silicon Valley Burn Rate 214

Startup Professionals Musings

DECEMBER 17, 2013

Cost of customer acquisition. Customer acquisition cost is calculated by dividing total acquisition expenses by total new customers over a given period. Over time, you cost of acquisition should go down as growth and your brand image go up. Operating productivity.

Metrics 252

Metrics Technical Review Retention Acquisition 252

Startup Professionals Musings

OCTOBER 18, 2023

New startup founders keep all the operating metrics they need in their head. Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

Startup Professionals Musings

AUGUST 1, 2021

In his classic book on building a business, “ Traction: Get a Grip on Your Business ,” Gino Wickman, a similar experienced business consultant and developer of the Entrepreneurial Operating System (EOS), outlines five common frustrations that we both hear from entrepreneurs, as follows: You are the boss, but you don’t have control.

Entrepreneur 436

Entrepreneur Venture Capital Operations Social Media 436

Startup Professionals Musings

MAY 28, 2022

Use acquisitions to complement organic growth. Smart companies use acquisitions to enhance momentum and accelerate revenue growth. Smart companies use acquisitions to enhance momentum and accelerate revenue growth. Smart companies always have a few “experiments” in process. In many cases, the return is not worth the cost.

Intellectual Property 322

Intellectual Property Acquisition Non-Compete Merger 322

Startup Professionals Musings

JANUARY 9, 2021

New startup founders keep all the operating metrics they need in their head. Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

Startup Professionals Musings

FEBRUARY 6, 2022

Most founders and CEOs will not voluntarily establish a formal Board of Directors, unless they are trying to attract a major investor, preparing for an IPO, or planning for an acquisition. Do you expect involvement in company operations? How much are you willing to spend on your board? How many board members need you work with?

Advisory Board 348

Advisory Board IPO Angel Investor Acquisition 348

Startup Professionals Musings

APRIL 29, 2022

Stepping into unknown territories takes real customer acquisition marketing and new costs through social media, public relations, and advertising campaigns. Start today with new customer acquisition efforts. Operational costs escalate as your business scales up. Penetrating new customer segments is not so easy.

Global 276

Global Marketing Acquisition Public Relations 276

Startup Professionals Musings

OCTOBER 17, 2018

You need a well-rounded team, including technical, financial, marketing, and operational experience, and your ability to attract the right people is a strong indication of fundability and traction. These would include cost of customer acquisition, cost of leads, sales channel, cost of goods, and pricing strategy.

Advisory Board 199

Advisory Board Technical Review Metrics Business Model 199

Startup Professionals Musings

OCTOBER 27, 2014

The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition). Until mid-2013, the USPTO still operated on the doctrine of “first to invent,” rather than first to patent.

Software Review 250

Software Review Software Technical Review Intellectual Property 250

Startup Professionals Musings

NOVEMBER 8, 2021

Of course, that doesn’t dilute the owner’s equity, but it may well limit you to organic growth, versus international rollouts and acquisition options. They operate the business to sustain a minimal level of cash flow necessary to support the lifestyle. Business model to maintain lifestyle is the primary driver.

Entrepreneur 371

Entrepreneur Equity Dilution LLC 371

Startup Professionals Musings

SEPTEMBER 12, 2014

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Yet it is an opportunity for you and your investors to cash out.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Startup Professionals Musings

SEPTEMBER 13, 2023

Be aware that hybrid work settings of today are testing your company's empathy strength in its daily operations. Continuous innovation is a mindset that you cannot outsource, or bring in through acquisition or consultants. Be sure to address all three domains of empathy : emotional, cognitive, and compassionate.

Agile 294

Agile Acquisition Analytics Restful 294

Startup Professionals Musings

JANUARY 11, 2020

Apple is an early example of adding a channel to expand, to become a “click-and-mortar” retailer, meaning they operate both physical and online stores. Use outside investment and acquisition to expand your scope. For you, the future could be in using distributors, licensing to other brands, or international subsidiaries.

Customer 359

Customer Institutional Investors Channel Acquisition 359

Startup Professionals Musings

APRIL 26, 2021

Every business, including non-profits, need a viable source of revenue to cover the costs of operation and sustainability. Investors know that operational and employee expenses are always higher than anticipated, not to mention customer acquisition costs, capital expenses, and ongoing competitive initiatives.

Intellectual Property 332

Intellectual Property Angel Investor Business Model Channel 332

Startup Professionals Musings

APRIL 11, 2022

Every entrepreneur needs to know and communicate the total costs associated with their solution or product, including cost of goods sold, customer acquisition costs, capital costs, operational expenses, and partner costs. Every team and every individual should know their own cost contributions required to complete their activities.

Business Model 334

Business Model Intellectual Property Angel Investor Channel 334

Startup Professionals Musings

JANUARY 9, 2022

Because feedback from social media operates in real time, you don’t have to wait months for results. This can be customer acquisition cost, revenue growth, profit, or whatever other parameters are key to your success. You spend the months influencing the influencers. Create an action plan with metrics.

Social Media 338

Social Media Framework Media Conversion Ratio 338

Startup Professionals Musings

JULY 16, 2023

Officially, the investment banks mission is to raise money for companies by issuing and selling securities in the capital markets, and providing advice on transactions such as mergers and acquisitions. Yet every business needs to have a good relationship with a bank, for day to day operations.

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Startup Professionals Musings

MAY 27, 2016

Investors expect to hear annual revenues, average margins, customer acquisition costs and sales pipelines. This should include financial, marketing, sales, and operations, all with a record of working together in setting milestones, managing results, and focusing on the market opportunity.

Technical Review 134

Technical Review Intellectual Property Due Diligence Angel Investor 134

Startup Professionals Musings

AUGUST 11, 2021

An internal business expansion is often incompatible with established operations, thus mergers and acquisitions are the most common scaling strategies. People embedded in an existing business are often too narrowly focused, comfortable, and risk averse to be new entrepreneurs.

Dilution 428

Dilution Entrepreneur Merger Acquisition 428

Startup Professionals Musings

OCTOBER 26, 2020

Officially, the investment banks mission is to raise money for companies by issuing and selling securities in the capital markets, and providing advice on transactions such as mergers and acquisitions. Yet every business needs to have a good relationship with a bank, for day to day operations.

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

Startup Professionals Musings

MAY 29, 2022

Last year was quite a year for IPOs, largely influenced by the significant rise in the number of special purpose acquisition companies (SPACs) who went public, despite almost uniformly negative returns. In addition, huge amounts of executive time are required, as well as hits to key operational, accounting, and communication processes.

IPO 245

IPO SEC Prospectus Startup 245

Startup Professionals Musings

NOVEMBER 6, 2020

Growth entrepreneurs quickly find themselves removed from day-to-day operations, and become more and more occupied by transactions with lawyers, investors, and potential acquisition partners. Personal income is related to operations versus equity. Use flexibility to match your lifestyle.

Small Business 311

Small Business Small Business Administration SBA Equity 311

Startup Professionals Musings

APRIL 27, 2016

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Yet it is an opportunity for you and your investors to cash out.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Startup Professionals Musings

MAY 8, 2019

Most founders and CEOs will not voluntarily establish a formal Board of Directors, unless they are trying to attract a major investor, preparing for an IPO, or planning for an acquisition. Do you expect involvement in company operations? How much are you willing to spend on your board? How many board members need you work with?

Advisory Board 247

Advisory Board IPO Angel Investor Startup 247

Startup Professionals Musings

MARCH 8, 2021

Airlines, for example, have difficulty scaling up through mergers and acquisitions (M&As), but they can spin off their maintenance businesses and let the spin-off do the M&A in its own field. Service operations such as call centers can grow far beyond their parent companies, especially if their services are more generic.

Startup 313

Startup Non-Compete Merger Leadership 313

Startup Professionals Musings

JANUARY 18, 2016

What they don’t realize is that about half the investment deals fail to close at this stage, including mergers and acquisitions , during the due-diligence process. Most entrepreneurs work long and hard to get a handshake agreement from an investor, and then tend to relax and wait for the check to clear.

Technical Review 120

Technical Review Due Diligence Cap Table Intellectual Property 120

Startup Professionals Musings

NOVEMBER 11, 2020

Building a business requires funding – for inventory, marketing, and operations. Scaling is the holy grail of every new venture – from local to global, from online to brick-and-mortar to partners to mergers and acquisitions, from a private company to a public company, from cash-flow-positive to the next unicorn.

Entrepreneur 348

Entrepreneur Silicon Valley Incubator Merger 348

Startup Professionals Musings

MARCH 13, 2020

Demonstrate an understanding of business operation realities. They prefer a liquidity event such as an IPO or an acquisition by an existing large industry player, with a valuation at that time of five multiples or more of your projected revenues. Define an exit strategy for investors to liquidate their share.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Startup Professionals Musings

NOVEMBER 14, 2012

Cost of customer acquisition. Customer acquisition cost is calculated by dividing total acquisition expenses by total new customers over a given period. Over time, you cost of acquisition should go down as growth and your brand image goes up. Operating productivity.

Metrics 266

Metrics Retention Acquisition Salary 266

Startup Professionals Musings

MARCH 8, 2019

Tech startups tend to dismiss offline customer acquisition strategies, such as organizing events, creating on-the-ground operations, or incentivizing users to promote their services. Favor operations over technology to prove it works. For your disruptive business to succeed, it needs to work, plain and simple.

Customer 182

Customer Social Media Demand Operations 182

Startup Professionals Musings

APRIL 3, 2019

Because feedback from social media operates in real time, you don’t have to wait months for results. This can be customer acquisition cost, revenue growth, profit, or whatever other parameters are key to your success. You spend the months influencing the influencers. Create an action plan with metrics.

Social Media 240

Social Media Campaign Media Conversion Ratio 240

Startup Professionals Musings

JANUARY 26, 2019

Of course, that doesn’t dilute the owner’s equity, but it may well limit you to organic growth, versus international rollouts and acquisition options. They operate the business to sustain a minimal level of cash flow necessary to support the lifestyle. Business model to maintain lifestyle is the primary driver.

Startup 194

Startup Equity Dilution LLC 194

Startup Professionals Musings

JULY 13, 2019

Every entrepreneur needs to know and communicate the total costs associated with their solution or product, including cost of goods sold, customer acquisition costs, capital costs, operational expenses, and partner costs. Every team and every individual should know their own cost contributions required to complete their activities.

Intellectual Property 250

Intellectual Property Business Model Angel Investor Channel 250

Startup Professionals Musings

MAY 3, 2017

Most founders and CEOs will not voluntarily establish a formal Board of Directors, unless they are trying to attract a major investor, preparing for an IPO, or planning for an acquisition. Do you expect involvement in company operations? How much are you willing to spend on your board? How many board members need you work with?

Advisory Board 174

Advisory Board IPO Angel Investor Acquisition 174