Startup Professionals Musings

AUGUST 4, 2014

Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

Berkonomics

FEBRUARY 8, 2024

The post What are the costs of taking investor money? However, outside professional investor board members can be a very good asset to the corporation with the skills, experience and broad relationships many bring to the boardroom table. first appeared on BERKONOMICS.

Cost 62

Cost Covenant Angel Groups Angel Investor 62

Startup Professionals Musings

AUGUST 24, 2016

Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

This is going to be BIG.

JANUARY 18, 2024

Still, there are a lot of downsides to taking venture money—the push to grow at all costs, our desire to be all up in your business, literally, and sometimes, we’re kind of obnoxious. It will save everyone a lot of cost and time. You’re going to suck compared to an alternative player and you’ll undoubtedly cost your team wins.

.Net 89

.Net Cap Table Startup Technical Review 89

Up and Running

JULY 1, 2020

It starts with a high-level strategy and continues all the way to market analysis, sales plans, operations planning, and financial modeling. Operations, marketing, and personnel plans: You’ll outline the details of what operational costs, marketing budget, and additional positions you’ll need for your expansion to be a success.

Business Plan 152

Business Plan Forecast Operations Dilution 152

Up and Running

NOVEMBER 5, 2018

What will it cost to start that business? Many people underestimate startup costs and start their business in a haphazard, unplanned way. Estimating realistic startup costs is one of the key elements of your financial plan. What are startup costs? And it interferes with the estimates and dilutes their value.

Cost 150

Cost Balance Sheet Startup Intellectual Property 150

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. Startup funding comes from personal savings and family.

Entrepreneur 371

Entrepreneur Equity Dilution LLC 371

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. Startup Lessons'

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Startup Professionals Musings

APRIL 12, 2021

In my experience as a business advisor and occasional investor, many of you won’t make it that far, succumbing to the high costs of getting those first customers, funding an initial inventory, and building an operational support process. Consider partnerships or joint ventures with competitors.

Dilution 404

Dilution Incubator Bootstrapping Government 404

Up and Running

JULY 2, 2014

We shared all of this with our attorney before she helped us write our Operating Agreement (OA), so we assumed we were in good hands. of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute. The deal we made with him was he’d get 33.3%

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

YoungUpstarts

JULY 31, 2019

Founders need seed capital to get their operations up and running, and to begin generating revenue. They need to comply with laws, create back-end processes, and build prototypes — all of which cost money.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

Hearpreneur

JANUARY 30, 2022

Businesses are being more concerned about the changing habits of their stakeholders and are adjusting their culture and operations accordingly. There are also staffing issues, which limit full operational services. This won’t just be about daily business operations but performance. 18- Switch to remote work.

Entrepreneur 124

Entrepreneur Green Technical Review Social Media 124

Both Sides of the Table

AUGUST 14, 2017

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 26, 2019

You’re not allocating enough costs to gross margin or the cost to acquire a customer. Find and focus on one reliable distribution mechanism before diluting your time diversifying. If you haven’t operated at the executive level at a scaling startup, you don’t appreciate how different and difficult it is.

Restful 202

Restful Founder Revenue Acquisition 202

ReadWriteStart

JUNE 1, 2020

Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

AUGUST 3, 2010

How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. But they’re big and they have very experienced operators like Brett Brewer running things. how to cut redundant costs. - It has awesome features that my main competitor doesn’t have.

Merger 276

Merger Technical Review Early Stage Dilution 276

Startup Professionals Musings

FEBRUARY 13, 2013

But before you conclude that your funding problems are solved with grants, you should consider the direct and indirect costs of grant funding: Grant applications are bureaucratic. Professional help costs money. To the investors, it means less dilution and lower overall risk. Violations can lead to jail time.

Government 230

Government Equity Cost SBIR 230

View from Seed

JULY 15, 2020

Companies that are largely in R&D phase can operate business as usual, assuming there is capital to fund the company for 18-24 more months. Mid-stage portfolios can be more acutely impacted if many companies have fat cost structures and were investing heavily in growth that is not materializing.

Portfolio 215

Portfolio IRR Dilution Distribution 215

The Startup Magazine

JANUARY 12, 2024

Failure to do so can lead to operational inefficiencies, like a dam struggling to hold back a flood of issues. The Brand Identity Balancing Act While chasing growth, there’s a risk of diluting what made your brand special in the first place. Bringing in systems consultants can really make your life easier here.

Intellectual Property 147

Intellectual Property Dilution Security Government 147

YoungUpstarts

MAY 9, 2017

The process of implementing Lean across the organization is usually referred to as a Lean transformation, because it transforms every facet of how a company operates – including its culture, decision making, and plans for the future. individuals dilute their focus and slow their productivity. 9 Reduced Costs.

Lean 124

Lean Agile Technical Review Dilution 124

David Teten

AUGUST 19, 2019

Benefits: Non-dilutive, flexible credit offerings that fit SMB or enterprise SaaS. Repaid 12-36 months with ability to prepay at reduced cost. The average monthly operating expenses is $70,335. 30% have been operated by females, 70% have been operated by males. Capital need of up to $1.5M over next 12 months.

Revenue 60

Revenue Technical Review Software Review Equity 60

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. With major investors, your equity and return is diluted and delayed.

Small Business 311

Small Business Small Business Administration SBA Equity 311

VC Cafe

SEPTEMBER 28, 2023

Fewer established Series B+ startups shuttered operations, though the 34 later stage shutdowns exceeded last year’s 25. But many had to swallow a bitter pill and either raise extension rounds at flat/down valuations (causing painful dilution) or sell, often at prices lower than their last round valuation.

Valuation 104

Valuation Startup Angel Investor Dilution 104

David Teten

JANUARY 19, 2021

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. That said, nothing is cost-free.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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. COGS” represents the amount that each sale costs you. million to fund operations in their first year of operations.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

The Startup Magazine

FEBRUARY 21, 2023

This can cost you sales and your reputation. Even if the other business does not have a registered trademark, they may still be able to sue you for unfair competition or dilution of their brand. If your business operates multilingual, consider if the name is easy to read, write and pronounce for people in those cultures.

Naming 172

Naming Cleveland Social Media Dilution 172

The Startup Magazine

JANUARY 22, 2023

This can cost you sales and your reputation. Even if the other business does not have a registered trademark, they may still be able to sue you for unfair competition or dilution of their brand. If your business operates multilingual, consider if the name is easy to read, write and pronounce for people in those cultures.

Naming 157

Naming Cleveland Social Media Dilution 157

This is going to be BIG.

NOVEMBER 28, 2021

How about paying into childcare costs, adoption, or IVF too? Again, if you’re thinking about the money side of this, consider the overall cost of not being able to hire and consider how undifferentiated your current benefits options are. Or, just do the six months acroess the board—it doesn’t seem to be hurting Spotify.

Hiring 192

Hiring Early Stage Marketing Term Sheet 192

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. Startup funding comes from personal savings and family.

Startup 194

Startup Equity Dilution LLC 194

Both Sides of the Table

FEBRUARY 17, 2011

For many businesses you should keep your costs low & your capital raises low until you discover whether you are really on to a big idea where there is market demand. If you are able to raise money from credible sources at a reasonable dilution percentage then I personally favor getting the round done now and building your business.

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Startup Professionals Musings

JULY 26, 2019

In fact, studies have shown that the long-term value of coaching has a return of at least 2x to more than 100x times the cost. You need healthy conflict to get people to face their limitations, and to fully understand customer and operational issues. People who seek to avoid all conflict or never disagree, do not make good coaches.

Dilution 229

Dilution Agile Developer Demand 229

Up and Running

JULY 14, 2015

You hire more staff than you need, become inefficient with operations, or move to bigger offices. Operating lean should be the mantra of all businesses. However, if the higher funding comes at costs that impact your investment parameters, it would be wiser for the long term to raise the minimum estimated.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Version One Ventures

FEBRUARY 6, 2019

The cost of bringing a drug to market is expensive (hundreds of millions of dollars to billions of dollars) and risky (it simply might not work!). Then, the revenue you earn from these partners/customers can cover your operating costs while you develop your own drug to bring to market – which is where the most value is captured in biotech.

Dilution 132

Dilution Artificial Inteligence IPO Valuation 132

The Startup Magazine

JULY 15, 2023

Smart software is revolutionizing the way security firms operate, changing everything from shift scheduling to camera monitoring. Make it so that they don’t need to combine services – something that could dilute your brand and offering. It means that companies can offer city-wide or regional services at lower costs and higher margins.

Security 148

Security Artificial Inteligence Differentiation Dilution 148

Startup Professionals Musings

FEBRUARY 9, 2018

I find that most good founders proceed faster on their own, with less drain on their time from peers and programs, and no equity dilution. Overall, there is no doubt in my mind that the image of an entrepreneur is at an all-time high, and the cost of entry is at an all-time low. All successful businesses start with a business plan.

Incubator 180

Incubator Angel Investor Dilution Equity 180

Both Sides of the Table

SEPTEMBER 29, 2009

The other investors around the table didn’t agree nor did the “independent” board members who were willing to turn a blind eye to capital inefficiency since they didn’t have any economic interests that would be diluted by continued fund raising to support a capitally inefficient management team. I only had one board with this problem.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Startup Professionals Musings

MAY 19, 2014

But before you conclude that your funding problems are solved with grants, you should consider the direct and indirect costs of grant funding: Grant applications are bureaucratic. Professional help costs money. To the investors, it means less dilution and lower overall risk. Violations can lead to jail time.

Seed Money 242

Seed Money SBIR Dilution Government 242