Startup Professionals Musings

APRIL 23, 2017

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Customer 191

Customer Entrepreneur Technical Review Dilution 191

Startup Professionals Musings

AUGUST 31, 2018

This experience includes browsing your website, social media interactions, the sales process, as well as your support and follow-up. Instant global communication now makes it easy to reach new markets without rethinking your entire product strategy. Expand your product line, staying close to the core.

Dilution 167

Dilution Angel Investor Software Review Distribution 167

Startup Professionals Musings

OCTOBER 13, 2021

As a long-time business consultant and investor, especially to entrepreneurs, I recognize your sparkle of vision , to build the ultimate world-changing product. I found these maladies summarized well in a new book, “ Radical Product Thinking ,” by entrepreneur Radhika Dutt. Obsessive sales – must meet revenue goals.

Dilution 334

Dilution Metrics Acquisition Revenue 334

Startup Professionals Musings

DECEMBER 18, 2013

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Entrepreneur 252

Entrepreneur Marketing Technical Review Dilution 252

Steve Blank

NOVEMBER 13, 2018

I had joined MIPS Computers, my second semiconductor company , as the VP of marketing and also took on the role of the acting VP of Sales. I worked with engineering to try to find product/market fit ( big endian or little endian ?) Think hard about whether titles need to be formal (VP of Engineering, VP of Marketing, VP of Sales, etc.)

Part-Time VPE 333

Part-Time VPE Employee Cofounder Hiring 333

Startup Professionals Musings

NOVEMBER 10, 2012

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Startup 254

Startup Technical Review Dilution Early Stage 254

Both Sides of the Table

SEPTEMBER 28, 2014

We’re going to start aggressively spend money on marketing our product. 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. We want a strong balance sheet (um, ok. Think DropBox, Airbnb, Uber, Maker Studios.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

SEPTEMBER 17, 2011

Still, I’ll bet that functionally you divide areas of competence like sales & marketing, product, engineering, biz dev, etc. “I need a COO to focus on the business while I focus on M&A and strategic discussions.&# The company that wrote me this told me they were doing $4 million in sales. What will it do?

Operations 292

Operations CTO Hire Startup Early Stage 292

Up and Running

JULY 1, 2020

Businesses start when their founders see a need for a product or service that they can provide. You may grow to tap new markets or increase sales in your current markets. While it’s called a business plan, it can be written and utilized to successfully enter a new market, launch a product, or weigh the potential of adding an employee.

Business Plan 152

Business Plan Forecast Operations Dilution 152

YoungUpstarts

SEPTEMBER 23, 2017

In the first stage, it processes its proposition with early adopters and keeps on pivoting till the time it has the right product and way of positioning it. Investing more money in stage one won’t really help, as spending twice as much on sales won’t produce twice the sales. Raise money when you don’t need it.

Cofounder 109

Cofounder Sweat Equity Equity Dilution 109

Both Sides of the Table

JANUARY 4, 2014

I think as a tech industry we have bred a culture that places more emphasis on product excellence than managing human behavior. Of course it makes no sense to have great people management and a crappy product. – while the other might want a quick sale and pocket some bucks while the tech market is hot.

Founder 340

Founder Sacramento Cofounder Technical Review 340

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 meant that the management teams hadn’t figured out a product / market fit for their own businesses. It has awesome features that my main competitor doesn’t have. Please don’t relearn my lesson.

Merger 276

Merger Technical Review Early Stage Dilution 276

Startup Professionals Musings

SEPTEMBER 13, 2011

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Marketing 238

Marketing Entrepreneur Technical Review Dilution 238

Startup Professionals Musings

JULY 1, 2022

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% 7% Product Manager,2 -.3% You should also assume that your percentage will go down through dilution as the company raises additional rounds, and offer sizes will go down as the company grows.

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Both Sides of the Table

NOVEMBER 14, 2017

An alternate outcome that I also unfortunately observe in some cases are companies who had extreme early success with an initial product adoption but failed in key areas that limited the growth and therefore the ultimate financial outcomes. How profitable is my product or service? As an early-stage VC I love this phase.

Operations 286

Operations New York City Technical Review Startup 286

Startup Professionals Musings

MAY 8, 2022

The downside is loss of control and financial dilution. No one wants to put in money until you have a product, and you need money to build the product. Startups are usually founded by product or service experts who don’t enjoy the various growth phases. Should you start a company solo or find co-founders to help you?

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Hearpreneur

JANUARY 30, 2022

Leaders who were early adopters of technology are now doubling down on transformation activities that will help them to boost productivity and performance even more as well as guarantee that they have the tools they need for whatever the future holds. . Thanks to Gerrid Smith, Property Tax Loan Pros ! #3- 3- Cut back corporate travel.

Entrepreneur 122

Entrepreneur Green Technical Review Social Media 122

Both Sides of the Table

JULY 22, 2010

The more senior members you have (say you already have a CEO, CTO, VP marketing, VP Biz Dev, VP Products) then the less options you’ll need and vice versa. The VC’s $1 million still buys them 25% of your company – it’s you who has diluted to 60% ownership rather than 75%.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 26, 2019

Sometimes that’s airtight product/market it. Sometimes that’s product design so thrilling that every customer spreads the word to five more. Instead, watch payback period for acquisition efficiency, watch retention for product/market fit, watch expansion revenue for long-term growth, and watch gross margin for long-term profitability.

Restful 202

Restful Founder Revenue Acquisition 202

Startup Professionals Musings

AUGUST 27, 2010

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Missions and products that are too broad confuse your team, your customers, and potential investors. Product development chasm. Marketing and sales chasm.

Startup 227

Startup Technical Review Dilution Early Stage 227

Both Sides of the Table

AUGUST 14, 2017

Boards are not appointed to be founder-friendly lapdogs for the 1–3 founders who start companies and usually own the largest equity positions in the company.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

Duct Tape Marketing

OCTOBER 11, 2023

11:51] In the creator economy, how does shifting from push to pull marketing work for product exposure? [13:13] But what the dilution, if you bring it down to it that even creator entertainers and educators have in common is it's this human element. And we actually show the product being used. 15:45] Thinkific is a creator tool.

B2B 80

B2B Marketing B2C Community 80

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. Understand market share .

Valuation 161

Valuation Artificial Inteligence Dilution Marketing 161

The Startup Magazine

SEPTEMBER 11, 2023

By delegating specific tasks—like outsourced sales for startups—to third-party experts, internal teams can focus on core competencies. This not only boosts productivity but also ensures that every function operates at peak efficiency. This goes beyond mere financial metrics. It’s not just about cost-cutting.

Cost 140

Cost Startup Non-Compete Dilution 140

YoungUpstarts

MAY 6, 2019

They make money by starting a product from scratch and then selling it in thousands of dollars. In most cases, they hit the jackpot when their products are sold for millions. You don’t have a product and most of your meetings will not bring any fruit. You are looking for cofounders that can help you build a product.

Startup 104

Startup Technical Cofounder Merger Early Stage 104

YoungUpstarts

SEPTEMBER 16, 2015

Raise too much capital at any given stage and suffer more dilution than is necessary – obviously not ideal. The best entrepreneurs raise enough money to achieve a set of interim milestones and then raise capital again at a significantly increased valuation. It’s part art, part science. Set Quantifiable Goals.

Valuation 100

Valuation Dilution Chicago Technical Review 100

David Teten

AUGUST 19, 2019

In addition, I’ve noted a few multi-product lending firms, e.g., Kapitus and United Capital Source , which provide RBI as one of many structural options to companies seeking capital. . We have a special program if you are pre-seed and need product development. I’ve listed below all of the major RBI venture capitalists I’ve identified.

Revenue 60

Revenue Technical Review Software Review Equity 60

View from Seed

APRIL 30, 2015

In many instances, you raise an institutional round to either fulfill a product strategy or go-to-market strategy or you’re increasing sales and marketing hires, so you have better visibility into what needs to happen in the next six, 12, 18 months. NVV: Is there any dilution? These are value-creation milestones.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

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. Is it one product line or multiple?

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. Production or service is the business’s core activity, which generates revenue. Marketing and sales are how you reach and sell to your target market.

Technology 137

Technology Venture Capital Finance Startup 137

ReadWriteStart

JUNE 1, 2020

You must have a prototype or a minimum viable product (MVP). To fund the sudden spike in production, funds will be required for additional inventory and wages. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Royalty based investment.

Startup 150

Startup Elevator Pitch Entrepreneur Seed Stage 150

Berkonomics

FEBRUARY 23, 2023

Competitors, seeing a successful development of a niche, flock into the competitive void with products or services built with a fresh view of the current environment. So, the question: load up with more equity and dilution? Or sell now?

Dilution 62

Dilution Valuation Early Stage Equity 62

Mike Michalowicz

APRIL 10, 2022

And your sales suffer. . Whether you want to get sales or sign ups, your directive needs to be doable at the moment. The sale is the financial action in their decision to buy. Step 2 – Your second email can include an offering for a demo, to learn more, or perhaps a coupon for a product. If you confuse, you lose. .

Marketing 148

Marketing Dilution Sales Email 148

ReadWriteStart

JANUARY 27, 2011

For a more elaborate explanation of the deal, please read my blog post 1M/1M: Alternative Financing For Startups Using A Sales Channel Partner. I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. Safarclick.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

YoungUpstarts

OCTOBER 16, 2016

Though business evolution first starts with risk in that direction, we don’t necessarily have to put ourselves, our people, our services or our products in the path of so much of the potential collateral endangerment that can accompany growth. 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

Both Sides of the Table

JUNE 5, 2011

Then you can do a little bit of research and find out that very few companies ever achieve this valuation in a trade sale so you’re clearly gunning for an IPO. You’re unlikely to want to make this sort of investment with the product or the market not yet validated. The risk wouldn’t be appropriate.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Hunter Walker

JANUARY 2, 2017

Key words in any press release to look for are “XYZ product will be shut down so the team can concentrate on new projects, etc.” ” Next Level – Buying Product. It could lower earnings because of continued investment and share dilution. It could go wrong and they’ll look stupid.

Technical Review 115

Technical Review Cap Table Acquisition Startup 115