Startup Professionals Musings

FEBRUARY 27, 2016

Project your costs as diligently as your revenues. Keep all IP details close to the vest. Don’t forget to account for the time and cost of crowdfunding campaigns. Several crowdfunding successes have failed as a business. Don’t underestimate the amount of funding actually required.

Non-disclosure Agreement 120

Non-disclosure Agreement Intellectual Property Technical Review Vesting 120

Duct Tape Marketing

OCTOBER 8, 2023

By choosing to become a fractional CMO, you bring expert-level skills into multiple businesses at fraction of the cost and time commitment required by full-time roles. They offer flexibility, adaptability, and cost savings for companies not needing full-time executives. Does that pique your interest? Keep going!

Technical Review 73

Technical Review Retention Networking Leadership 73

Startup Professionals Musings

AUGUST 3, 2015

Thus it behooves every entrepreneur to optimize their investment strategies early, based on time and dollar costs, as well as odds of success. Weigh the cost of every pitch against the potential return. For new entrepreneurs looking for seed-stage help, concentrate on investors who know you or organizations with a vested interest.

Cost 120

Cost Angel Groups Due Diligence Silicon Valley 120

Transformify

DECEMBER 22, 2019

It gets even worse if the first version of their product is not good enough to generate revenues. Instead, their focus is on acquiring more and more users no matter the cost per acquisition. Ironically, it’s the tool that can boost revenues and buy time till the next funding round. Know your userbase. About the author.

Affiliate 91

Affiliate Revenue Churn Rate Programming 91

SoCal CTO

MARCH 1, 2007

skip to main | skip to sidebar SoCal CTO Thursday, March 1, 2007 Entreprenuer Network Great post by Ben Kuo - The Importance of the “Network&# to Entrepreneurs - the informal connections between people in the technology industry here who have a vested interest in helping entrepreneurs take their companies to the next level.

Technical Cofounder 150

Technical Cofounder Networking Southern California Los Angeles 150

Hearpreneur

NOVEMBER 19, 2021

These businesses were helping people straighten their teeth at a much lower cost and with less pain than traditional alternatives such as braces. If manufacturers can increase productivity , they can produce more without increasing costs, then they are more globally competitive. Photo Credit: Alex Dask. Why did you start your business?

Entrepreneur 147

Entrepreneur Software Review LLC Web Development 147

Scott Edward Walker

OCTOBER 19, 2020

Unfortunately, I was involved in such a scenario a few years back, and it cost the founders a lot of money to get the prior employer to agree to execute a waiver. This issue is akin to trying to negotiate with a departed founder who is not subject to a vesting schedule – see post here.). Any IP created by a founder (e.g.,

IP 52

IP Software Review Founder Technical Review 52

Both Sides of the Table

NOVEMBER 4, 2010

When new companies enter the market they really have no chance to initially unseat the incumbents because the performance gap is too large and the costs / time of catching up too unachievable. And weirdly the buyers of this technology often have a vested interest in buying from the incumbent. So what did happen? They can’t.

Vesting 376

Vesting Framework Revenue Technology 376

David Teten

OCTOBER 1, 2015

I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. Vesting equity equally divided into set milestones, in this case: 5% vest after design phase. 5% vest at clickable prototype.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Duct Tape Marketing

JUNE 2, 2017

How to minimize customer acquisition costs written by Guest Post read more at Duct Tape Marketing. If it costs too much to bring in customers, you’re quickly going to find yourself treading water. Continue treading these waters and you’ll need a life vest. Continue treading these waters and you’ll need a life vest.

Acquisition 48

Acquisition Cost Customer Social Media 48

Both Sides of the Table

JULY 16, 2013

The company with no revenue and a $150k burn rate that raised $2.5 I often wonder why they didn’t find a way to bring in some revenue to cover costs. Newsflash – if you had $75k revenue / month you’d have 8 months cash left in stead of 4. I see this weekly. million and has 4 months cash left. Same thing.

Burn Rate 412

Burn Rate Dilution Revenue Valuation 412

Both Sides of the Table

MAY 5, 2011

Great lifestyle, great cost of living, motivated people and only the crap weather on the negative side. When you account for competition for talent, the difficulty of retention, the cost of living and the difficulty of rising above the noise – there are many advantages of staying put. The ingredients are all here.

Seattle 317

Seattle Silicon Valley Technical Review Los Angeles 317

Up and Running

JANUARY 5, 2021

You have a vested interest in making sure it works. It forces you to consolidate it into a business identity while considering the market you’re entering, potential competitors, and what expenses, revenue streams, and milestones you need to hit. Sorry, but you definitely have to pay taxes and report your revenue to the IRS.

Lean 146

Lean CPA Vesting Naming 146

Up and Running

MAY 3, 2012

In the business plans that I review, I often come across glaring gaps that are simply insurmountable; e.g. plans to launch new alcoholic beverages in the UK without understanding the capital costs or the power of distribution in that industry. The list goes on. To be clear, I’m not anti-entrepreneurship.

Entrepreneur 82

Entrepreneur Technical Review Silicon Valley Lean 82

ConversionXL

AUGUST 2, 2017

1,983% boost in annual revenue, 1,000% user base growth within six months with no upfront costs. increased revenue. Here are a few quotes from my interviews: “It’s understood that in a partnership, each side has their own vested interests. 80-20 rule says that a few of your partners provide most of the revenue.

Channel 84

Channel Partner Programming B2B 84

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Capital has built a free online tool for founders to calculate their cost of capital.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ConversionXL

AUGUST 26, 2014

The sad part is, the same study found that in almost every revenue group – with the exception the $0-10k group – companies that test changes based on extensive historical data were proportionally the most likely to be more successful. For instance, 99 high quality images from this site could end up costing you $1,980.

Framework 109

Framework Conversion Analytics eCommerce 109

ConversionXL

AUGUST 2, 2017

1,983% boost in annual revenue, 1,000% user base growth within six months with no upfront costs. increased revenue. Here are a few quotes from my interviews: “It’s understood that in a partnership, each side has their own vested interests. 80-20 rule says that a few of your partners provide most of the revenue.

Channel 77

Channel Partner Programming B2B 77

Austin Startup

AUGUST 20, 2017

Set any vesting schedules and expiration dates on roughly similar terms, if for no other reason just so you can track all of them correctly. Can you acquire them at a sustainable cost? Is there a development step that you must take to fulfill demand for a particular use case, and, if so, how does that cost get absorbed?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? There are a million ways to do quick, easy, low-cost rounds with prices. of the time I have no vested interest in having the debate. So if the next round is higher they have a much lower cost of ownership than the next investors anyways. How will you price the next round? Your A round? Him: On metrics.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. Another difference with large investments is that the founders areusually required to accept "vesting"—to surrender their stock andearn it back over the next 4-5 years. vesting would in that situation force founders to toe the line.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

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. .”). Go vest yourself. During this year they. Company : BricaBox.

Software Review 79

Software Review Startup Technical Review Vesting 79

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. VCs (and LPs) have a vested interest in having more data, whether they want to invest in your company / firm or not. They aren’t doing this viciously?—?they

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Up and Running

FEBRUARY 27, 2014

You have a vested interest in making sure it works. You have a vested interest in making sure it can support your lifestyle, allow you to quit your job and NEVER work for anyone ever again in your life. Sorry, but you definitely have to pay taxes and report your revenue to the IRS. . Get a sales tax license.

Vesting 101

Vesting Cloud CPA Finance 101

ConversionXL

JUNE 28, 2016

If tests are developed because the CRO team thinks that kitschy headlines are more effective, or a strategist has a fondness for safety-vest-orange buttons, your organization’s testing strategy may be biased before it even gets going. Avoiding Admitting the Hard Truth When a Test Fails Miserably and Costs You Real Money. Bill Bullard.

Programming 79

Programming Software Review Analytics Framework 79

Ben's Blog

APRIL 28, 2010

The new, professional CEOs were unwilling to let go of the most basic assumptions driving the cost structure of their businesses. They are paid in terms of stock options that vest over 4 years and cash bonuses for quarterly and yearly performance. Professional CEOs, on the other hand, tend to be driven by relatively shorter-term goals.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Hippoland

DECEMBER 18, 2016

But hopefully you were able to recoup the cost of it prior to starting this company. The cost of living will influence your salary a lot. Your cost to get a startup up and running in the Bay Area will probably be about 2-5x higher than say in Las Vegas. On the flip side, you may be generating some revenues to offset costs.

Las Vegas 48

Las Vegas Salary Burn Rate San Francisco 48

Gust

DECEMBER 8, 2011

Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. founders’ shares subject to vesting) and IRS filings for most favorable tax treatment of those shares. Newco, Inc.”)

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

infochachkie.com

SEPTEMBER 24, 2011

For instance, many a BDC CEO has initiated a consultant to study cost cutting issues before announcing a significant layoff. For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage.

Equity 40

Equity Silicon Valley Cofounder PR 40

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   It is very expensive if you’re the entrepreneur since it doubles the cost to the company of paying dividends to the entrepreneur.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Software By Rob

NOVEMBER 16, 2009

Not only are you getting financing with little risk, but with customer financing you have someone in the industry with a vested interest in your product succeeding. But who needs revenue?) Once you have a viable product and some revenue, you’re in control. Why Don’t More Startups Do This?

Equity 42

Equity Software Review RSS Widget 42

Entrepreneurs-Journey.com by Yaro Starak

MARCH 10, 2011

Finding a programmer who will work in exchange for a vested interest is difficult; the alternative is to have and be willing to fork out dollars constantly for work you want done on your website. Credit card processing costs money per transaction, whether it is a purchase or a refund. Not to mention an unhappy customer.

Technical Review 71

Technical Review PPC Due Diligence Exit Strategy 71

www.chubbybrain.com

SEPTEMBER 28, 2011

So, the best way of dealing with this issue is to take a long, long vesting period for all major sweat equity founders.”. spent $20 million to get back to the same revenue that I had when I was CEO. spent $20 million to get back to the same revenue that I had when I was CEO. During this year they. During this year they.

Cofounder 89

Cofounder Startup Technical Cofounder CTO Hire 89

Startup Lessons Learned

JUNE 9, 2020

A complete collapse of revenue that simultaneously affects your employees and your customers, your partners, your investors, everyone all at once and all the news is bad. That meant of course initially raising money and cutting costs. We have to manage our stakeholders, raise money, diversify our business, and cut costs."

Silicon Valley 60

Silicon Valley Hosting Cofounder Employee 60

Gust

SEPTEMBER 17, 2014

Revenue multiple? There are a million ways to do quick, easy, low-cost rounds with prices. of the time I have no vested interest in having the debate. So if the next round is higher they have a much lower cost of ownership than the next investors anyways. How will you price the next round? Your A round? Him: On metrics.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Hearpreneur

SEPTEMBER 14, 2015

Everyone is so vested in their businesses. It also gives me the freedom to establish my own work schedule and fee structure, which grants more flexibility to take care of personal things, as well as, generate a desired revenue. People are so passionate and creative and most importantly they are real problem solvers.

Entrepreneur 48

Entrepreneur Fresno LLC Community 48

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 have a proposal written up including full cost and revenue projections. Once you’ve done that – then.

Technical Review 44

Technical Review Startup Cofounder Software Review 44