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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Similarly, when Flexible VC structures are based off of the founder’s own compensation (often via salary or dividends), investors are specifically tying their returns to the financial success of the founder.

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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

Business Model I would like to propose that in addition to team, product, and market, there is actually a fourth, equally important, core element of startups, which is the need for a viable business model. However there is a lot of value in looking at these same metrics for all other businesses.

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Why Startups Fail - 20 Top Reasons Gleaned from 32 Startup Failure Post-Mortems

www.chubbybrain.com

created a vastly higher cost structure; I had 80 people mostly on base salaries under $100,000 and was bringing in revenue at the rate of $20 million annually. The ArsDigita of Greylock, General Atlantic, and Allen had nearly 200 with lots of new executive positions at $200,000 or over, programmers at base salaries of $125,000, etc.

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How I Started, Grew & Sold An E-commerce Business For Quarter Million Dollars ($250,000)

Entrepreneurs-Journey.com by Yaro Starak

In my previous post, Why Leave A Six Figure Salaried Career For Online Entrepreneurship , I wrote about the various business ventures I have tried and tested over the years. One of those ventures was the creation, establishment, growth and sale of an e-commerce business. Why the $75 markup on one small bottle of perfume?

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From Nothing To Something. How To Get There.

techcrunch.com

I too am looking for someone to work with that knows the manufacturing and distribution end of a solid product. Options and future value are great ‘add ons’ but not for a welfare check salary until ‘this great idea makes it.’ Twitter is an excellent distribution channel for us. (B) How to get there.

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How to hire a programmer to make your ideas happen

sivers.org

The programmer will probably not understand your business model, and therefore cant help you point out anything that doesnt make sense in the requirements. Dont make cheap skate equity offers, with programmer getting equity share of first employee and salary of founder(nothing or next to nothing). Keep it Simple.