article thumbnail

Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

Stock options for all employees of startups served several purposes: Because startups didn’t have much cash and couldn’t compete with large companies in salary offers, stock options dangled in front of a potential employee were like offering a lottery ticket in exchange for a lower salary. Today that’s less true.

article thumbnail

What Happens When Startups Turn from Their Innovation Stage to Operational Excellence?

Both Sides of the Table

You start out with vision, you must adapt and have intellectual honesty once you stare at your data and know where your true sources of differentiation and value are. Whereas New York City has very high real estate costs and very high salaries, launching in Chicago and D.C. were more distributed.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

The most obvious way to explain this is with sales people. If you hire 6 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 for 4-6 months. “COGS” represents the amount that each sale costs you.

Startup 418
article thumbnail

Some Career Advice for Aspiring Tech CEOs

Both Sides of the Table

” It was meant both as a call to those writing angel checks into other people’s companies that they ought to think about putting that capital toward themselves either by becoming a startup founder or (and this was my real point) by taking an under-market salary in a company where they can learn the right skills to do it in the future.

article thumbnail

10 Indications That It’s Time To Ask For Help At Work

Startup Professionals Musings

Sometimes it’s obvious that closing a deal requires some tough negotiation or sales calls at the top, but these are not your forte, so you can never find the time or energy to get them done. You know what is required, but you continue to procrastinate. Maybe it’s time to find an advisor, or a board member with the right connections.

Burn Rate 329
article thumbnail

The Key Elements of the Financial Plan

Up and Running

Sales forecast. A typical profit and loss statement should include: your revenue (also called sales), followed by. your “cost of sale” or “cost of goods sold” (COGS)—keep in mind, some types of companies, such as a services firm, may not have COGS. That might sound like sales, expenses, and profits, but it’s not.

article thumbnail

How to Build a Restaurant Sales Forecast

Up and Running

With restaurants, as with most businesses, there is no single right way to do a sales forecast. The best sales forecast method will vary according to how you manage information, how much past data you have access to, and what special factors drive your business. From base case to sales forecast.

Forecast 115