Startup Professionals Musings

FEBRUARY 18, 2023

Every startup should have at least a couple of outside advisors who are not major investors or family members, anxious to talk to new investors and key new hires. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

JANUARY 15, 2020

In addition to goodwill justified by a great leader and an outstanding team, investors will use their due diligence process to assess the organizational structure and effectiveness as well. The key parameters of this evaluation will always include: Strength of the business culture. Focus on talent and people growth.

Valuation 311

Valuation Technical Review Due Diligence Leadership 311

Startup Professionals Musings

APRIL 25, 2020

Then it extends to the hiring process. When it’s time for due diligence, we will talk to your team. When McDonald’s was still a small company, Ray Kroc, the CEO, had a penchant for asking a store manager to help him clean up trash in their parking lot. Instill optimism and self-confidence, but stay grounded in reality.

Technical Review 308

Technical Review Kentucky Due Diligence Japan 308

Startup Professionals Musings

NOVEMBER 19, 2018

Of course, full trust must be earned, but it is critical to do some due diligence before hiring new team members, or establishing partnerships. After due diligence, the best approach is for you to be vigilant, but explicitly communicate your trust and confidence in their abilities.

Leadership 241

Leadership Technical Review Due Diligence Founder 241

Startup Professionals Musings

NOVEMBER 17, 2013

Failure to prepare for due diligence. Not doing due diligence on the funding source. You need to complete due diligence on your prospective funders as they complete due diligence on you. Then you have to have evidence to support your request.

Software Review 265

Software Review Due Diligence Elevator Pitch Startup 265

Startup Professionals Musings

JULY 15, 2019

Partner decisions are more important than team member hiring decisions. Thus you should do the same or more due diligence on educational background, previous work, and references. Ethics and the view of personal boundaries should be explored fully. Carry minimal historical baggage.

Cofounder 221

Cofounder Software Review CTO Hire Founder 221

Startup Professionals Musings

OCTOBER 10, 2012

Failure to prepare for due diligence. Not doing due diligence on the funding source. You need to complete due diligence on your prospective funders as they complete due diligence on you. Then you have to have evidence to support your request.

Software Review 250

Software Review Due Diligence Elevator Pitch Entrepreneur 250

Startup Professionals Musings

AUGUST 9, 2011

Failure to prepare for due diligence. Not doing due diligence on the funding source. You need to complete due diligence on your prospective funders as they complete due diligence on you. Then you have to have evidence to support your request.

Software Review 246

Software Review Due Diligence Elevator Pitch Early Stage 246

Startup Professionals Musings

APRIL 22, 2014

Partner decisions are more important than hiring decisions. Thus you should do the same or more due diligence on educational background, previous work, and references. How the leaders of your company handle adherence to the spirit as well as the letter of the law will be seen by all employees, customers, and investors.

Partner 269

Partner Software Review CTO Hire Fractional CTO 269

Startup Professionals Musings

APRIL 8, 2015

Every startup should have at least a couple of outside advisors who are not major investors or family members, anxious to talk to new investors and key new hires. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

NOVEMBER 16, 2018

For example, as a member of an angel investment group, I sometimes do some “due diligence” on promising startups looking for funding. This has to start with selecting the right partners, and hiring people who believe in you and your business. Your team is your business, and you can’t sell without them.

Technical Review 178

Technical Review Marketing Due Diligence Social Media 178

Startup Professionals Musings

OCTOBER 30, 2017

Obstacles are abundant, including the scarcity of warm introductions, enough traction to satisfy investors, and unending due diligence requirements. For example, rather than getting cash from professional investors and hiring programmers, find qualified developers who are willing to work for equity or deferred payments.

Technical Review 220

Technical Review Accredited Investor Due Diligence Equity 220

Startup Professionals Musings

JULY 3, 2010

Failure to prepare for due diligence. Not doing due diligence on the funding source. You need to complete due diligence on your prospective funders as they complete due diligence on you. Then you have to have evidence to support your request.

Software Review 239

Software Review Due Diligence Elevator Pitch Startup 239

Startup Professionals Musings

JULY 16, 2017

Partner decisions are more important than team member hiring decisions. Thus you should do the same or more due diligence on educational background, previous work, and references. Ethics and the view of personal boundaries should be explored fully. Carry minimal historical baggage.

Partner 140

Partner Software Review CTO Hire Cofounder 140

Startup Professionals Musings

FEBRUARY 8, 2013

Partner decisions are more important than hiring decisions. Thus you should do the same or more due diligence on educational background, previous work, and references. How the leaders of your company handle adherence to the spirit as well as the letter of the law will be seen by all employees, customers, and investors.

Partner 258

Partner Software Review CTO Hire Equity 258

Startup Professionals Musings

APRIL 8, 2012

Then it extends to the hiring process. When it’s time for due diligence, we will talk to your team. When McDonald’s was still a small company, Ray Kroc, the CEO, had a penchant for asking a store manager to help him clean up trash in their parking lot. Instill optimism and self-confidence, but stay grounded in reality.

Technical Review 332

Technical Review Entrepreneur Kentucky Due Diligence 332

Startup Professionals Musings

MAY 4, 2013

Then it extends to the hiring process. When it’s time for due diligence, we will talk to your team. When McDonald’s was still a small company, Ray Kroc, the CEO, had a penchant for asking a store manager to help him clean up trash in their parking lot. Instill optimism and self-confidence, but stay grounded in reality.

Technical Review 278

Technical Review Entrepreneur Kentucky Due Diligence 278

Startup Professionals Musings

JUNE 29, 2011

Partner decisions are more important than hiring decisions. Thus you should do the same or more due diligence on educational background, previous work, and references. How the leaders of your company handle adherence to the spirit as well as the letter of the law will be seen by all employees, customers, and investors.

Partner 240

Partner Software Review CTO Hire Fractional CTO 240

Startup Professionals Musings

MARCH 25, 2022

Hire the best, and provide necessary training and tools. Too many busy business leaders I know take shortcuts in hiring, looking for a quick fill, assuming new employees can learn on the job, with minimal training and old tools. Proactive customer communication should be your first recourse, followed by cost and service concessions.

Advisory Board 336

Advisory Board Due Diligence Demand Partner 336

Startup Professionals Musings

NOVEMBER 4, 2015

In addition to goodwill justified by a great leader and an outstanding team, investors will use their due diligence process to assess the organizational structure and effectiveness as well. The key parameters of this evaluation will always include: Strength of the business culture. Focus on talent and people growth.

Leadership 120

Leadership Technical Review Due Diligence Valuation 120

Startup Professionals Musings

OCTOBER 23, 2015

That’s why they insist on spending a day with your team as part of the due diligence process. Focus on hiring the right people, and deal quickly with mismatches. Skills and experience are necessary in hiring, but finding a match in values and culture is equally important. Every investor knows this.

Technical Review 120

Technical Review Entrepreneur Due Diligence Social Media 120

Startup Professionals Musings

MAY 24, 2010

Partner decisions are more important than hiring decisions. Thus you should do the same or more due diligence on educational background, previous work, and references. How the leaders of your company handle adherence to the spirit as well as the letter of the law will be seen by all employees, customers, and investors.

Partner 230

Partner Software Review CTO Hire Fractional CTO 230

Startup Professionals Musings

FEBRUARY 10, 2016

Then it extends to the hiring process. When it’s time for due diligence, we will talk to your team. When McDonald’s was still a small company, Ray Kroc, the CEO, had a penchant for asking a store manager to help him clean up trash in their parking lot. Instill optimism and self-confidence, but stay grounded in reality.

Technical Review 120

Technical Review Kentucky Due Diligence Japan 120

Startup Professionals Musings

APRIL 10, 2016

Every startup should have at least a couple of outside advisors who are not major investors or family members, anxious to talk to new investors and key new hires. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

JULY 20, 2015

Thus partnership decisions are much more critical then employee hiring decisions. Even if all initial interactions look positive, don’t forget the due diligence process, especially follow-up discussions with previous partners. No perceived negatives or red flags to overcome.

Partner 120

Partner Technical Review Due Diligence Startup 120

Startup Professionals Musings

MARCH 16, 2016

After viewing your slide deck, if investors are still interested in your startup, they will ask for a deep-dive meeting to drill in on any hard questions before commencing due diligence. They may decide to acquire the startup in order to hire the team for another project in their portfolio. Sweat equity.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Startup Professionals Musings

AUGUST 20, 2010

They should be asking to speak to you if you are a potential investor or a superstar hire. In the parlance of an investor, asking these questions and getting answers is the heart of that mysterious "due diligence” process. If you are a potential employee, you need to do the same due diligence before you sign on.

Due Diligence 229

Due Diligence Sweat Equity Intellectual Property Startup 229

Startup Professionals Musings

SEPTEMBER 5, 2011

They should be asking to speak to you if you are a potential investor or a superstar hire. In the parlance of an investor, asking these questions and getting answers is the heart of that mysterious “due diligence” process. If you are a potential employee, you need to do the same due diligence before you sign on.

Due Diligence 237

Due Diligence Sweat Equity Intellectual Property Entrepreneur 237

Startup Professionals Musings

MAY 19, 2023

Hire for character, competency, and compatibility. Hiring is the single most important thing you do as a leader, and firing is second. Hiring people who are just like you may eliminate revolts, but it won’t get you outside your own box. It’s more than filling an open slot on your team. Diversity on your team expands thinking.

Technical Review 229

Technical Review Due Diligence Business Model Demand 229

Startup Professionals Musings

NOVEMBER 2, 2012

They should be asking to speak to you if you are a potential investor or a superstar hire. In the parlance of an investor, asking these questions and getting answers is the heart of that mysterious “due diligence” process. If you are a potential employee, you need to do the same due diligence before you sign on.

Due Diligence 244

Due Diligence Sweat Equity Burn Rate Intellectual Property 244

Startup Professionals Musings

JULY 30, 2010

Do your “due diligence” through good homework before someone else sets the parameters. First you need to present the most effective offer, even alternatives, to support your position (based on the due diligence above), then take the initiative on making an offer. Show them a return on investment (ROI) in their own terms.

Due Diligence 230

Due Diligence Entrepreneur Employee Matching 230

Startup Professionals Musings

AUGUST 23, 2020

Hire for character, competency, and compatibility. Hiring is the single most important thing you do as a leader, and firing is second. Hiring people who are just like you may eliminate revolts, but it won’t get you outside your own box. It’s more than filling an open slot on your team. Diversity on your team expands thinking.

Technical Review 324

Technical Review Entrepreneur Due Diligence Business Model 324

Startup Professionals Musings

JULY 27, 2015

Thus the ability to build effective teams is one of the key differentiators of a great entrepreneur that outside investors look for, and the validation of having effective teams in place is high on the list of due diligence items before investor funding is committed.

Due Diligence 120

Due Diligence Startup Differentiation Entrepreneur 120

Startup Professionals Musings

SEPTEMBER 25, 2015

In fact, as an angel investor, I find that many of the questions in the due-diligence process give me real insight into the maturity of a startup. It all starts with attracting and hiring the best people, and nurturing these individuals with support and ongoing growth opportunities.

Due Diligence 120

Due Diligence Seed Stage Angel Investor Entrepreneur 120

Startup Professionals Musings

OCTOBER 6, 2018

Hire for character, competency, and compatibility. Hiring is the single most important thing you do as a leader, and firing is second. Hiring people who are just like you may eliminate revolts, but it won’t get you outside your own box. It’s more than filling an open slot on your team. Diversity on your team expands thinking.

Technical Review 233

Technical Review Due Diligence Business Model Demand 233

Startup Professionals Musings

NOVEMBER 26, 2018

The best solution is real due diligence up front, before signing investors, to make sure they have the same values and objectives that you do, and agree to your key milestones. It’s not uncommon for investors to push strong personal agendas, or major stock holders to focus on short-term goals in lieu of your high-level ones.

Due Diligence 219

Due Diligence Leadership Stock Entrepreneur 219

Startup Professionals Musings

SEPTEMBER 24, 2016

Hire for character, competency, and compatibility. Hiring is the single most important thing you do as a leader, and firing is second. Hiring people who are just like you may eliminate revolts, but it won’t get you outside your own box. It’s more than filling an open slot on your team. Diversity on your team expands thinking.

Technical Review 120

Technical Review Due Diligence Startup Business Model 120