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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.

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10 things I wish I knew when I sold my businesses

Jeff Hilimire

When selling my first company, we worked so hard on the process of the sale that we inadvertently slacked off on business development (i.e. We felt the pain of that a few months after we closed the sale. Think past the sale itself. With the first sale, I didn’t have a long-term personal plan post-sale.

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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. We determine a salary cap with the founder based on a software engineer in the closest major city. redemption, revenue share, etc.)

Equity 78
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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
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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. Posted by Philippe Botteri.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

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. The founder who owns 51% of Company B can elect to pay himself a salary of $1 USD. At what price?

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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.