Remove Deal Structure Remove Hiring Remove Salary Remove Sales
article thumbnail

The Dos And Don’ts Of Selling Your Business

Duct Tape Marketing

3:57] If I’m that solo owner and I’ve been paying myself a nice salary and there’s maybe 10% profit at the end of it – is that considered cash flow or is that considered an expense of the business? [6:34] Let's talk about some of the deal structures you've seen. 09:23): Sure.

article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

All Earnest investments are made using the Shared Earnings Agreement (SEAL) – a custom salary/profit share structure, aligned with how most bootstrapped founders are compensated. The fund specializes in “micro-SAAS,” often investing to help the founder go from part-time to full-time on their business or make a key hire.

Equity 78
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

ME: Sure, but maybe that competitor would further validate and grow the market, which could increase your sales and make you even more attractive to a buyer! Deal B gives you 70% of your number, all in cash, all up-front. Do you prefer Deal B? In fact, what if a new competitor pops up in a year and starts kicking our ass?

Sales 235
article thumbnail

Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc. Not to mention the quarter million dollar sale of the business as our exit. The lost salary simply doesn’t matter enough anymore at that point.

article thumbnail

Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. at 11:09 AM.

article thumbnail

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Out of fairness, that’s why they wanted to hire me, to fix that issue. Without receiving a real salary, I’d be wary of signing a non-compete in an area which I have domain expertise in. Lastly and most excitingly , it is very very easy in this structure to cause Company B to go bankrupt. At what price?