Berkonomics

JANUARY 13, 2022

Email readers, continue here…] But what about the pause to celebrate? Not many founders or entrepreneurs do experience the success of a favorable sale of the business they dreamed would make them rich. Others are diluted by subsequent investors to the point where there was nothing for them to celebrate at all in a sale.

Dilution 62

Dilution .Net Sales Entrepreneur 62

Up and Running

AUGUST 7, 2013

Over several decades of building businesses, working with employees and in some cases partners, I’ve learned a few things about what people want when they do something well. Reacting fast to your own people is as critical to a business as answering sales queries quickly. Every day you wait dilutes the impact. .

Salary 120

Salary Dilution Leadership Employee 120

Duct Tape Marketing

DECEMBER 17, 2015

The company, Danatec, sold paper-based course materials for corporate trainers to use in safety training of employees. But with fast growth, that promise can be diluted. Your business success is influenced by many different types of people: prospects, customers, employees, funders, suppliers, distributors and even the public at large.

Canada 28

Canada Dilution America Employee 28

Duct Tape Marketing

MAY 23, 2024

Duct Tape Transcript Email Download New Tab John (00:08): Hello, and welcome to another episode of the Duct Tape Marketing Podcast. And so the earliest versions were eBay and scratch and debt sales. John (03:15): Yeah, I bet you the employees at Whole Foods are really pissed about that. This is John Jantch. That's right.

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Revenue Distribution Cofounder Email 60

Tim Keane

JANUARY 12, 2010

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. This results in a range of sale prices; in this example from $118.6MM to $21MM. Let’s start at the end.   So, let’s assume here we have an 8% non-cumulative dividend.

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Term Sheet Valuation Dividend Liquidation Preference 68

Berkonomics

APRIL 4, 2019

These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding,) and approve any additions to the capital stock authorized to be issued. Requirements created by investment documents.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

Both Sides of the Table

APRIL 27, 2010

Moving on … My second post was directed at employees. If you’ve done it for a long time then I usually advise hiring managers to hire you as contractors and not full-time employees. No employees wanted to join startups – they were all looking for stable jobs. It’s a subjective topic.

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Venture Capital Hiring Software Review Stock Options 285

Berkonomics

OCTOBER 8, 2015

Email readers, continue here…] First there comes a sense of relief, knowing that you no longer need to worry over daily cash or threats to your net worth. Not many founders or entrepreneurs do experience the success of a favorable sale of the business they dreamed would make them rich. Many fail multiple times. Hit the beach.

Entrepreneur 48

Entrepreneur Dilution .Net Sales 48

Berkonomics

APRIL 14, 2012

Email readers, continue here.] These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding), and approve any additions to the capital stock authorized to be issued.

Stock Options 81

Stock Options Balance Sheet Stock Common Stock 81

Berkonomics

OCTOBER 7, 2011

For employees, a late or missed payroll is the ultimate test of corporate loyalty, divorced even from an employee’s ability to make do without a paycheck. And it is that disconnected employee, usually one or more of the better performers, that starts looking for a job when times look bad for a company.

Valuation 54

Valuation Dilution Down Round Employee 54

Berkonomics

OCTOBER 26, 2010

Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service. Email readers continue here.] Inside board members, CEO and any other paid employees are not paid for board service in either stock options or cash.

Stock Options 66

Stock Options Early Stage Stock Vesting 66

crowdSPRING Blog

OCTOBER 30, 2018

It directly affects your ability to sell, to fundraise, to hire the best employees, and to grow. Whether I walk past a Blaze Pizza, open an email from Blaze Pizza, or visit Blaze Pizza’s website, I immediately know it’s them. Make sure that all communication, marketing, and sales endeavors support these messages.

Small Business 55

Small Business Metrics Social Media Audience 55

A Smart Bear: Startups and Marketing for Geeks

MARCH 1, 2010

What would a sales call look like, starting with your 30-second pitch, then dealing with skeptical questions, trying to earn this potential customer's interest, respect, and eventually money, all with only one advantage? You should go through this exercise because this skill is valuable in every sales call. Don't dilute your message.

Open Source 239

Open Source Dilution Software Developers Software Development 239

The Next Web

OCTOBER 10, 2013

Hire everyone you need as an employee. Too dilutive.”. Since we bootstrapped Backblaze, early on we would have months when the company did not have enough cash from sales to buy the additional servers it needed. Dilution – bringing on a co-founder likely means you’re splitting your share in half. Too many.”.

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Cofounder Technical Cofounder Kenya Dilution 143

Berkonomics

NOVEMBER 23, 2023

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if there is no interest, to outside investors. An option plan should carve out an addition of about 15% of the “fully diluted” shares.

Equity 62

Equity Stock Options Vesting Early Stage 62

Duct Tape Marketing

APRIL 7, 2022

Look, if you work in sales, wanna learn how to sell, and frankly who doesn't check out the sales podcast, where host Will Barron helps sales professionals learn how to find buyers and win big business ineffective and ethical ways. Duct Tape Transcript. Listen to the salesman podcast, wherever you get your podcast.

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Cofounder Hosting Networking Software Review 74

venturehacks.com

SEPTEMBER 22, 2011

Paul says, “Whenever you’re trading stock in your company for anything, whether it’s money or an employee or a deal with another company, the test for whether to do it is the same. Consider the opportunity cost of spending shares on employees and investors. We previously posted a table of market rates for employees.

Equity 40

Equity Cap Table Valuation RSS 40

YoungUpstarts

MAY 31, 2016

Hire smart, ambitious, get-it-done employees and lead them with emotionally intelligent innovation leadership skills. The single biggest reason that the average company struggles or even fails is due to their lack of focus and dilution of their greatest resource, which are people. Is a marketing plan important? Is high yield important?

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Technical Review Leadership Early Stage Initial Public Offering 100

crowdSPRING Blog

DECEMBER 13, 2018

Here, the “public” includes your customers, prospects, your employees, vendors, and others who connect in any way with your brand. Remember that you should evaluate both internal (your employees) and external (everyone else) perceptions of your brand. Email and customer feedback forms.

Marketing 162

Marketing Charlotte Naming Design 162

blog.simeonov.com

FEBRUARY 22, 2010

This can be a convenient shortcut to separate someone’s status (founder) from their role (employee or contractor or advisor, etc.) An email would do. of the fully-diluted capitalization of the company. As long as the decision is public and definitive, from an external perspective there is no issue. Which founder agreement?

Founder 44

Founder Vesting Agile Startup 44

Berkonomics

SEPTEMBER 28, 2017

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. An option plan should carve out an addition of about 15% of the “fully diluted” shares.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

www.paulgraham.com

APRIL 28, 2010

The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. They just want to invest in this startup.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

maplebutter.com

JANUARY 8, 2013

Do that – nothing else but one product / company / focus and get to $1M in sales with atleast $15% net profit. I also like to get a sale $$$ ASAP. You can start by personally emailing them and saying thanks. I send DM’s, emails, all day thanking people. We have two full time sales people and we use Salesforce.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. And there are also modern examples of investors beating the founders and employees out the door. It will also minimize future dilution.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Reid Hoffman

JUNE 8, 2021

At the time, they said, it’s not enough to design a product that’s good for sales, it must also be good for the environment. And then how would you prompt other entrepreneurial leaders to think more broadly about stakeholders than even just investors, employees, customers, which tends to be the typical trifecta? BC: Exactly, Reid.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Berkonomics

MAY 12, 2010

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Email readers continue here.] Director level employees are typically granted ½%.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

Occam's Razor

FEBRUARY 7, 2022

Oh, oh, oh, and our long-term favorite: Does online advertising on TikTok, Snap, and Hulu actually drive phone sales in AT&T, Verizon and T-Mobile stores in the real world? You and I promised a lot to get this program going, so many employees, leaders, egos, teams were involved, it will be a big let-down.

Analytics 101

Analytics Programming Global Campaign 101

Reid Hoffman

JUNE 8, 2021

At the time, they said, it’s not enough to design a product that’s good for sales, it must also be good for the environment. And then how would you prompt other entrepreneurial leaders to think more broadly about stakeholders than even just investors, employees, customers, which tends to be the typical trifecta? BC: Exactly, Reid.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Reid Hoffman

NOVEMBER 14, 2018

Raising excessive amounts of capital dilutes their stake in the company, and introduces a preference overhang (all that money has to be paid back before the founders and employees get to participate in the upside). Chaotic, unstable organizations make employees nervous and hurt morale. Raise more money than you need.

Engineer 28

Engineer Burn Rate Hiring Dilution 28

NZ Entrepreneur

JULY 12, 2018

We wouldn’t recommend having too many – three seems to be the ideal maximum – as you can get negative effects from too much dilution and by having too many cooks in the kitchen. Co-founder, or employee with an ESOP (Employee stock ownership Plan)? Get entrepreneur articles by email once a month.

Cofounder 44

Cofounder Founder Vesting Cap Table 44

ConversionXL

JANUARY 18, 2022

They make those searches in places where their peers are: a Slack community, a Reddit channel, a Facebook group, a direct message, an email, or a Zoom. via a WhatsApp group chat or an email to a colleague) and are amplified by word-of-mouth. You don’t want to overwhelm followers or come across as inauthentic and dilute your brand.

Social Media 145

Social Media Audience Media Marketing 145

Up and Running

DECEMBER 9, 2014

After college, I was a very early employee at a web company called Tumblr. It’s designed for small and mid size companies and it all started based on a focus of the employees. Our slogan is, “We heart employees,” and everything that we do is designed around usability for the employees.

Small Business 95

Small Business Finance Forecast Metrics 95