Steve Blank

MARCH 17, 2020

But next the question is, ‘What happens to my business?”. The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? What does your new business model look like? And how much are variable expenses (salaries, consultants, commission, travel, AWS/Azure charges, supplies, etc.?).

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Startup Professionals Musings

NOVEMBER 30, 2020

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 321

Entrepreneur Private Equity Startup Salary 321

Startup Professionals Musings

JANUARY 4, 2020

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Be prepared to explain your business model. How much equity ownership are you willing to offer?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Hearpreneur

JANUARY 1, 2023

Though it took some effort and money to incorporate these outside resources into my business, it was well worth the expenditure. To prepare for a bad economy, businesses should focus on activities that produce the highest free cash flow. This will keep them sustainable should revenues take a dive. 5- Focus on team wellness.

Entrepreneur 96

Entrepreneur Software Review Technical Review Revenue 96

Both Sides of the Table

JANUARY 4, 2014

Equity for the future? If you are the person staying how resentful will you become working your arse off for equity that your co-founder who leaves will get value from. He felt the CEO was willing to “sell his soul” for revenue and wanted things to be more pure. That worked for two years but then the tensions began.

Founder 340

Founder Sacramento Cofounder Technical Review 340

The Startup Magazine

AUGUST 6, 2021

Some thinkers have begun to talk about the “passion economy”, suggesting that you can build a business that caters on a shared passion with 1000 or even 100 “true fans”. Finding these true fans will enable your business to exist. Without them, you cannot earn any revenue. Develop a Business Model.

Limited Liability Company 163

Limited Liability Company Silicon Valley Business Model Stock Options 163

Steve Blank

APRIL 1, 2020

But other businesses like law firms, contracting firms, real estate firms, will take hits, too. Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? Days 3 and 4: Prepare new business model and operating plan. The ripple effects won’t be obvious at first.

South Korea 333

South Korea Salary Business Model China 333

Startup Professionals Musings

APRIL 2, 2016

That’s why all those so-called million dollar ideas I hear about as an investor don’t get me excited, and entrepreneurs find that working twenty hours a day often generates nothing more than sweat, instead of the desired sweat equity. Celebrate the ability to pay yourself a salary.

Sweat Equity 120

Sweat Equity Salary Startup Viral 120

YoungUpstarts

AUGUST 25, 2016

The steps focus you on developing your business model. But they only require “the back of an envelope” to figure out how you are going to make money, how much it is going to cost to run your business, and how soon you will generate a profit and reach breakeven. Calculate revenue per quarter and revenue per year.

Bootstrapping 100

Bootstrapping LLC Equity Revenue 100

Startup Professionals Musings

NOVEMBER 9, 2015

Yet many entrepreneurs rely on expensive outside services and outside money, rather than do the networking for a co-founder or two who have the right skills to work for equity. Creative and determined entrepreneurs always find ways to get people to work for equity, barter services or share later revenue rather than pay cash up front.

Bootstrapping 120

Bootstrapping Cofounder Equity Agile 120

Startup Professionals Musings

JANUARY 12, 2013

See how many you have personally experienced already, or are currently mentioned in your business plan: Crowd-sourcing equity. Sites like KickStarter have for years offered rewards and pre-sales for crowd investments, but real equity won’t be legalized until sometime this year for people other than accredited investors.

Entrepreneur 274

Entrepreneur Accredited Investor Silicon Valley Angel Investor 274

Startup Professionals Musings

SEPTEMBER 5, 2016

You don’t have to fight for your equity, and no one can slow you down in decision making. A limited budget makes for a better business plan. Don’t quit your day job until the revenue is flowing. Investors expect nothing less than a full-time commitment, even in the early stages when the business model has not yet been proven.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Growthink Blog

MAY 10, 2012

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Startup Professionals Musings

APRIL 15, 2016

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 120

Entrepreneur Private Equity Salary Cofounder 120

Startup Professionals Musings

JANUARY 16, 2015

That’s why all those so-called million dollar ideas I hear about as an investor don’t get me excited, and entrepreneurs find that working twenty hours a day often generates nothing more than sweat, instead of the desired sweat equity. Celebrate the ability to pay yourself a salary.

Sweat Equity 120

Sweat Equity Salary Viral Leadership 120

Steve Blank

MAY 20, 2010

It was the Internet bubble and after almost three years our startup had found a business model and we were scaling revenue and headcount fast. We’d like to adjust our salaries to reflect the new pay scale.” It was clear that he had no memory of a phone conversation my partner and I have never forgotten. Big Name CEO.

Founder 276

Founder Cofounder Salary Naming 276

Startup Professionals Musings

MARCH 7, 2015

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Be prepared to explain your business model. How much equity ownership are you willing to offer?

Preferred Stock 120

Preferred Stock Exit Strategy Equity Angel Investor 120

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Your business works as intended if you can attract customers that fit into the context of your operation. Can you acquire them at a sustainable cost?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Up and Running

OCTOBER 24, 2016

Below are the characteristics your company should exhibit in order to be a sustainable lifestyle business. The goal for a lifestyle business is to build sustainable revenue streams that are set up to operate on their own. Remember to factor in costs in addition to salaries like payroll taxes, Social Security, and Medicare.

Startup 60

Startup Venture Capital Salary Equity 60

Up and Running

JULY 22, 2014

A profit and loss statement is essentially an explanation of how your business made a profit (or incurred a loss) over a certain period of time. It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

Lightspeed Venture Partners

DECEMBER 10, 2012

Revenue is driven by children’s parties, which cost $600-$4,000 for a two hour party for 15 kids, which apparently is the market price for kids parties in LA. The space can host 6-9 parties per weekend, and they generated $350,000 in revenue last year. As O’Leary said, this isn’t an equity investment.

Covenant 153

Covenant Warrant Southern California Los Angeles 153

Hearpreneur

MAY 7, 2020

Her previous role was the founder of a third party marketing consultancy, West River Partners, that raised capital for Emerging Markets-based equity hedge funds. She is a graduate from Princeton University in Politics and The University of Chicago Booth School of Business. Francie previously worked in the fashion industry.

Founder 63

Founder Indiana Naming Search 63

The Equity Kicker

OCTOBER 8, 2012

According to Paul most startups should look at revenue growth, but active users is a good proxy for companies that aren’t charging their customers (yet). I share the view that growth is critical, and that without very high growth rates early on a business will never grow big.

Silicon Valley 149

Silicon Valley IPO eCommerce Valuation 149

Austin Startup

SEPTEMBER 17, 2017

A business model must be created out of whole cloth, and generally it’s a compilation of assumptions piled on top of other assumptions. Every model has a happy outcome when a founder is trying to convince himself or herself, a team, an investor, or even a spouse that the venture ahead is a good idea.

Valuation 48

Valuation Forecast Seed Money Business Model 48

Hearpreneur

JANUARY 7, 2017

Something similar happened during a salary negotiation seminar years later. 20 – To Blend A Beautiful Business Model. I started my business with my fiancé because of our combined skills and experiences. Greene, Land Carroll & Blair PC ! #20 Image Credit: Nina Noelle Holmes. Thanks to Artur Sousa, Adopt Pets ! #28

Entrepreneur 91

Entrepreneur LLC Cofounder Green 91

Up and Running

MAY 1, 2014

If your business model (i.e., “how If you are raising money to start or grow your business, you need to include the details of what you need in the executive summary. In addition to milestones and traction, your business plan should detail the key metrics that you will be watching as your business gets off the ground.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Hearpreneur

MARCH 14, 2018

As far as my destiny, I get to set whatever goals for my income (or any other aspect of my business) that I want, and the sky truly is the limit. I cannot imagine negotiating with an employer over my salary or work terms. 3- Working with people, helping people and finding business solutions. Everyone wins this way!

Entrepreneur 95

Entrepreneur PR Technical Review Non-Compete 95

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost. I don’t have any formal business training and I actually think it’s served me well. Once you’ve done that – then.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

Edwin: Oh sorry, so the business model. Edwin: The business model is that the organizer has to pay. After that, I did it for a private equity firm then we became a part of a larger corporation. So if I were to raise capital, I understand that I have to run the business differently. How do you split equity?

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

www.chubbybrain.com

SEPTEMBER 28, 2011

Don’t exacerbate the issue by needing to figure out how to deal with large equity deadweight on your hands (investors won’t like that the #2 stakeholder is absent, even estranged, from your company). So, the best way of dealing with this issue is to take a long, long vesting period for all major sweat equity founders.”.

Cofounder 89

Cofounder Startup Technical Cofounder CTO Hire 89

grasshopperherder.com

SEPTEMBER 24, 2011

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy. GrasshopperHerder.com. • ABOUT.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

www.chubbybrain.com

SEPTEMBER 28, 2011

spent $20 million to get back to the same revenue that I had when I was CEO. 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. .”). We had the wrong business model. During this year they.

Software Review 79

Software Review Startup Technical Review Vesting 79

Both Sides of the Table

FEBRUARY 14, 2016

In the case of startups the “buyer” is the VC looking to part cash for “purchasing” equity in your startup. When funding levels lower, many would-be entrepreneurs prefer the nice salary and stability of McKinsey or Google and thus the market has more hard-core entrepreneurs. Reversion to the Mean.

Valuation 150

Valuation Down Round Startup Later Stage 150

techcrunch.com

OCTOBER 23, 2010

Options and future value are great ‘add ons’ but not for a welfare check salary until ‘this great idea makes it.’ This resulted in a recapitilization of the equity away from 33% each (in my favor) and then the ultimate dismissal of one of the co-founders prior to the A-round. How many were started by MBAs?

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

Entrepreneurs-Journey.com by Yaro Starak

JANUARY 21, 2011

Paid off properties also have equity that you can tap into when in need. Despite revenues down a good chunk recently due to weak consumption, the business has been a profitable endeavor overall and currently running well with very minimal involvement from me, thanks to a great management team.

Internet 80

Internet Technical Review Stock Due Diligence 80

Up and Running

DECEMBER 9, 2014

The question is what metrics do you most rely on to understand your business’s health? Two, revenue. Many business owners today really think of financials as being about the past, how much revenue have we had, how much cost did we have. You heard a little bit from others about that. What do you do? Four, pro forma.

Small Business 95

Small Business Finance Forecast Metrics 95