Hearpreneur

JANUARY 30, 2022

Face-to-face engagement is important, especially at vital points in the sales cycle or while creating relationships. Businesses are being more concerned about the changing habits of their stakeholders and are adjusting their culture and operations accordingly. There are also staffing issues, which limit full operational services.

Entrepreneur 122

Entrepreneur Green Technical Review Social Media 122

Both Sides of the Table

SEPTEMBER 28, 2014

Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

The Startup Magazine

JULY 25, 2021

But existing shareholders are not happy with the company’s proposed plan to issue $500 million in new shares as it would only dilute its current float. You should focus on making your startup irresistible to investors without opting for a dilutive capital raise. Owning a business involves more than managing daily operations.

Valuation 161

Valuation Artificial Inteligence Dilution Marketing 161

David Teten

AUGUST 19, 2019

Benefits: Non-dilutive, flexible credit offerings that fit SMB or enterprise SaaS. The average monthly operating expenses is $70,335. The mode purpose for funding is (in order of frequency) Sales, Marketing, Market Expansion, Product Development, and Hiring Employees. Capital need of up to $1.5M over next 12 months.

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

AUGUST 14, 2017

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

Both Sides of the Table

AUGUST 3, 2010

How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. It is best not to buy your competitors – they’ll always want an unreasonable price and think of the sale as failure. It has awesome features that my main competitor doesn’t have. Want to sell early?

Merger 276

Merger Technical Review Early Stage Dilution 276

The Startup Magazine

SEPTEMBER 11, 2023

Many of these emerging businesses grapple with the challenge of maximizing their operations without exhausting their financial reserves. By leveraging external expertise, startups not only optimize their operations but also set the stage for sustained growth. It’s not just about cost-cutting.

Cost 140

Cost Startup Non-Compete Dilution 140

Berkonomics

FEBRUARY 8, 2024

After friends and family… Once a company founder has tapped the funds available from his or her resources and from friends and family, if the company needs more cash for growth, the most obvious next step is to look for money from angel investors and venture capitalists, typically in the $300,000 TO $3,000,000 range.

Cost 62

Cost Covenant Angel Groups Angel Investor 62

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 26, 2019

Find and focus on one reliable distribution mechanism before diluting your time diversifying. Or you can start selling to enterprise — nothing wrong with that — but then your high cost-basis of marketing, sales, and service will not scale downward. Sales” is not a dirty word. Operate on cash-basis. HT Tom Tunguz ).

Restful 202

Restful Founder Revenue Acquisition 202

ReadWriteStart

JUNE 1, 2020

Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.

Startup 150

Startup Elevator Pitch Entrepreneur Seed Stage 150

YoungUpstarts

OCTOBER 16, 2016

In business, growth is a big deal, especially when you think about this: Most businesses cease operations and shutter their doors before ever really hitting their stride. But by year 10, just one-third remain in operation. You’ll be inundated with sales pitches, lame template emails, unsolicited voicemails and more.

Cofounder 100

Cofounder Balance Sheet Small Business Administration Technical Review 100

YoungUpstarts

DECEMBER 18, 2014

That’s why the human learning machine prefers to operate in a low gear — on autopilot — as much as possible: It’s a conservation thing. Well, the big problem is that business has taken the “laziness model” — aka operational excellence — as far as it can go. Although the brain comprises only about 2.5

Employee 162

Employee Operations Global Dilution 162

Both Sides of the Table

JUNE 17, 2017

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

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

The Startup Magazine

JULY 1, 2022

The three main components of a company are production or service, marketing and sales, and finance. Marketing and sales are how you reach and sell to your target market. Equity financing can give you a lot of cash upfront, but it can also dilute your ownership stake in your company. How To Manage And Grow Your Company.

Technology 137

Technology Venture Capital Finance Startup 137

The Startup Magazine

FEBRUARY 21, 2023

This can cost you sales and your reputation. Even if the other business does not have a registered trademark, they may still be able to sue you for unfair competition or dilution of their brand. If your business operates multilingual, consider if the name is easy to read, write and pronounce for people in those cultures.

Naming 139

Naming Cleveland Social Media Dilution 139

The Startup Magazine

JANUARY 22, 2023

This can cost you sales and your reputation. Even if the other business does not have a registered trademark, they may still be able to sue you for unfair competition or dilution of their brand. If your business operates multilingual, consider if the name is easy to read, write and pronounce for people in those cultures.

Naming 123

Naming Cleveland Social Media Dilution 123

ReadWriteStart

OCTOBER 28, 2010

Common areas to address are decisions around capitalization, executive hiring and firing, share issuance (dilution), and acquisitions. Too many people mix the notion of being a shareholder in a startup and having an operating role. You'll need to decide what kinds of decisions the board makes, and which ones it won't.

Cofounder 128

Cofounder Founder Dilution Equity 128

Both Sides of the Table

FEBRUARY 17, 2011

A year ago I blogged about one of my most common mantras that applies to sales, biz dev & fund raising alike: “ Time is the Enemy of all Deals.&#. If you are able to raise money from credible sources at a reasonable dilution percentage then I personally favor getting the round done now and building your business.

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Both Sides of the Table

SEPTEMBER 10, 2021

We operate at scale and speed unprecedented in human history.” * I first wrote about the changes to the Venture Capital ecosystem 10 years ago and this still serves as a good primer of how we arrived at 2011, a decade on from the Web 1.0 dot-com bonanza. So in a way it’s self selecting.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

www.avc.com

SEPTEMBER 22, 2011

Once you have assembled a core team that is operating the business, you need to move from art to science in terms of granting employee equity. The other important data point is the number of fully diluted shares. You get that by dividing the best value of your company ($25mm) by the fully diluted shares outstanding (10mm).

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Both Sides of the Table

SEPTEMBER 29, 2009

Three reasons: There is a relative valuation between the price a VC pays and their expectations of what it will exit for in an IPO or trade sale. Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Hunter Walker

JANUARY 15, 2016

By the end of 2004 I had brought on two co-founders: John Vars – who is now the Chief Product Office at TaskRabbit, and Steven Reading took over Sales and Revenue. Early on my original expectation was that, like a social club, Dogster site members should be able to incur all cost of site operations.

Technical Review 48

Technical Review Startup Cofounder SMS 48

David Teten

JANUARY 19, 2021

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. Payments are commonly delayed for a grace period of 12-36 months.

Cofounder 78

Cofounder Technical Review Dividend Equity 78

The Startup Magazine

JULY 15, 2023

Smart software is revolutionizing the way security firms operate, changing everything from shift scheduling to camera monitoring. Make it so that they don’t need to combine services – something that could dilute your brand and offering. Unsplash – CC0 License Just look at what’s happened in the last five years.

Security 137

Security Artificial Inteligence Differentiation Dilution 137

Both Sides of the Table

JULY 25, 2010

. “Yes&# was given to me by one of my favorite angel investor / seed VC’s to work with – John Greathouse of Rincon Venture Partners and author of the blog InfoChachkie that you should check out because it is filled with great info from a guy who has been a very successful operator.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Seeing Both Sides

AUGUST 28, 2017

Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit. Who sets the policy for token sales—management or the board of directors?

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit. Who sets the policy for token sales—management or the board of directors?

Early Stage 20

Early Stage Equity Venture Capital Government 20

Up and Running

MAY 27, 2014

(It is possible to take money from investors who choose to be “silent partners”—but you’d better have that clearly agreed upon, as well as clearly outlined and documented in your operating agreement to avoid any conflicts later on as you grow your business. Every time an investment is made, everyone dilutes!). A Ten-Point Checklist.

Angel Investor 119

Angel Investor Dilution Accredited Investor Due Diligence 119

Both Sides of the Table

DECEMBER 1, 2009

I know that people find safety in numbers (and there always seems to be 3 amigos) but imagine this for a moment – you go and raise venture capital and you’re fighting over whether to dilute with a VC by 25% or 30% as a company. Are you externally savvy vs. more inwardly operational? - Are you a leader vs. a manager? -

Hiring 289

Hiring Cofounder Dilution Startup 289

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. Office and Operations. SALES & MARKETING. Besides the future potential earnings youre forgoing, youre also diluting your own ownership in the company. The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Innovation | Fridays. Leadership & Managing | Tuesdays. Tools & Research.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

ReadWriteStart

APRIL 4, 2023

These fees are charged to cover the costs of operating the crowdfunding platform, including marketing, payment processing, and customer support. Founders should consider other fundraising possibilities, such as traditional venture capital or angel investment, as well as non-dilutive funding sources such as grants or loans.

Startup 141

Startup Campaign Cofounder Venture Capital 141

YoungUpstarts

MARCH 1, 2019

The market as a whole is expected to increase to $523 billion in sales in the next year, showing promising gains from years past. While this promising growth in the online retail industry is helpful for any business operating in the space, there are challenges for certain companies.

Matching 104

Matching Dilution Small Business Partner 104

Brandanew

JULY 11, 2015

Its existing premium customers won’t take it kindly as it dilutes the said image. So, it is not only the sales but the sheer image that takes the equity to a different level altogether. But now it provides many other services including emails and mobile operating systems. Brand experience.

Virginia 100

Virginia Equity Differentiation Dilution 100

Up and Running

NOVEMBER 5, 2018

And it interferes with the estimates and dilutes their value. The rows cover the basic inputs to cash flow analysis: First, payments to be received from cash sales and sales on credit (which is called payments received here). Second, money to be spent on operating expenses and buying inventory. Timing matters.

Cost 150

Cost Balance Sheet Startup Intellectual Property 150

YoungUpstarts

APRIL 24, 2016

Otherwise growth will dilute or even destroy the culture. Amy Zimmerman is Head of Global People Operations at Kabbage. Kabbage leverages data generated through business activity such as accounting data, online sales, shipping and dozens of other sources to understand performance and deliver fast, flexible funding in real time.

Atlanta 100

Atlanta Dilution Hiring Global 100

Up and Running

MAY 21, 2015

That’s because preferred shares operate under a completely separate set of rules (which will be defined in the investment documents) than your shares. They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below).

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

Occam's Razor

APRIL 15, 2019

When you do that much stuff, and you can measure almost everything… The result is that our ecosystem of data people are returning a lot more negative data when measuring performance of Marketing, Sales, User Experience and Customer Service. They dilute the analysis with non-facts. You might think it would be the Attacker.

Leadership 79

Leadership Non-Compete Analytics Software Review 79