SoCal CTO

SEPTEMBER 27, 2011

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." I'll get to service providers in a later post. Which means n = (i - 1)/i.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Startup Professionals Musings

FEBRUARY 18, 2023

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. One more key employee or one more investor will probably not turn the situation around. Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. Before layoffs, cut all salaries by 20%. Cut CXO salaries by at least 30%.

South Korea 333

South Korea Salary Business Model China 333

Steve Blank

APRIL 10, 2019

VC’s have just changed the ~50-year old social contract with startup employees. For most startup employee’s startup stock options are now a bad deal. As Venture Capital emerged as an industry in the mid 1970’s, investors in venture-funded startups began to give stock options to all their employees. Here’s why.

Stock Options 334

Stock Options Stock Vesting Common Stock 334

Startup Professionals Musings

SEPTEMBER 29, 2018

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Up and Running

JUNE 1, 2021

It’s even possible for many of them to be revenue-neutral or better. Here’s an explanation of what conditions make an employee benefit revenue-neutral and a look at the five best options for businesses in a post-pandemic hiring environment. What is a revenue-neutral benefit?

Revenue 150

Revenue Employee Small Business Matching 150

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

A Smart Bear: Startups and Marketing for Geeks

NOVEMBER 7, 2017

The company landed one big customer representing 80% of total revenue, but that customer canceled. A key employee left the company, which caused the company to fail. A suitable replacement is too rare; it takes too long to find someone, convince them to join for almost no salary, and get them up-to-speed and productive.

Software Review 294

Software Review Channel Revenue Non-Compete 294

Transformify

AUGUST 27, 2017

All of the above is true, but it is also true that many startups have failed because they hired too early, too fast, or fired too late. Many of the points below can be found among the best hiring practices for startups and there is nothing wrong with them in general. Then the hiring begins. Hire full-time employees.

Hiring 64

Hiring Software Review Burn Rate Startup 64

Startup Professionals Musings

OCTOBER 5, 2014

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Up and Running

JULY 28, 2022

Generally, the size is based on the number of employees and annual receipts for a given period. Small Business Administration , an organization is considered to be a small business if their: Firm revenue ranges from $1 million to $40 million Number of employees is between 100 and 1,500. According to the U.S.

Small Business 167

Small Business Intellectual Property Cofounder Software Review 167

Steve Blank

MAY 19, 2015

I had lunch last week with Tom, the CEO of a startup that was quickly becoming a large company – last year’s revenue was $40M, this year likely to be $80M maybe even $100 million in ad revenue. to drive traffic to their site, which they then turned into ad revenue.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

Founder 252

Founder Technical Review CTO Hire IPO 252

crowdSPRING Blog

JANUARY 27, 2013

Today I want to write briefly about a strategy we have used to very good effect when hiring new workers: outsource. I am not talking about outsourcing work to other companies, but rather finding, hiring, and developing a network of freelance vendors or contractors. This does not just apply in the world of creative services.

Lean 99

Lean Hiring Salary United States 99

ReadWriteStart

JUNE 26, 2020

And, if I told you that by the beginning of May, you’d make every hire remotely, you might have laughed in my face. …suddenly, nearly all technical jobs are remote-jobs, all dev-teams are distributed teams, and virtually all hiring is remote hiring. Announcement: Square lets employees work from home permanently.

Silicon Valley 198

Silicon Valley Distribution Engineer Technical Review 198

ReadWriteStart

FEBRUARY 21, 2021

In many cases, digital marketing offers a return on investment (ROI) of many times your initial capital, meaning $1,000 per month in spending could turn into $3,000 per month in revenue. Adopting a fully remote model means you’ll be able to hire people all over the world, greatly increasing your potential talent pool.

Startup 106

Startup Software Review Open Source Technical Review 106

Both Sides of the Table

NOVEMBER 14, 2017

As a startup in this phase you often raise capital, get press, hire staff and everything feels possible. I always push companies to hire “an operationally focused CFO” during this phase because in order to systematize you need somebody who brings economic rigor to decision making. As an early-stage VC I love this phase.

Operations 286

Operations New York City Technical Review Startup 286

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 4, 2017

By which they mean: Without stupid rules that assume employees are dumb or evil, without everything taking ten times longer than it should, without wall-to-wall meetings, without resorting to hiring anything less than the top 1% of the talent pool, and so on. Why is this impossible when you have 500 employees? Predictability.

Government 223

Government Startup Cofounder Technical Support 223

Both Sides of the Table

DECEMBER 27, 2011

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. So your Q1 results will be $180,000 less profitable than if you hadn’t hired them. Simplifying: Revenue -. Operating Costs.

Startup 418

Startup Revenue Technical Review Flash 418

Hearpreneur

JANUARY 1, 2023

As I've taken the time to invest in companies and programs that can manage various facets of my business on my behalf, I've been able to increase my revenue and provide better financial insulation for my firm to help it withstand the negative effects of a recession. Our teams and employees are our biggest support during an economic downturn.

Entrepreneur 94

Entrepreneur Software Review Technical Review Revenue 94

YoungUpstarts

AUGUST 3, 2017

If hiring a financial planner or accountant is currently cost prohibitive, start with a banker – they will offer free insight. Any banker or accountant will tell a small business owner that it’s crucial to separate personal and business finances in order to accurately track revenue streams and create measurable business goals.

Small Business 140

Small Business Finance Distribution Government 140

Startup Professionals Musings

SEPTEMBER 14, 2016

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Austin Startup

MAY 8, 2018

Background reading: Founder Compensation: Cash, Equity, Liquidity Fatal Errors in Early Startup Hiring Early Hires: Options or Stock Given how deeply involved we are with early-stage startups hiring their first key employees, I figured it would be helpful to outline a few key principles to help entrepreneurs navigate the topic.

Employee 48

Employee Seed Stage Startup Equity 48

YoungUpstarts

SEPTEMBER 29, 2014

Employees want a paycheck on time. But making a mistake, especially when it comes to government taxes and regulations, could land you in trouble with the Internal Revenue Service (IRS). When a new employer starts hiring, he needs to fill out an IRS W-4 form. New Hire Reporting. The government wants its money.

Small Business 165

Small Business Software Review Salary Government 165

YoungUpstarts

JANUARY 26, 2016

When you consider that 88% of people leave their jobs for a position with a matching or lower salary you come to understand that the reasons for changing companies is rarely financial. Despite being a bootstrapped company with little revenue, we over-invested in a central New York City office at a rate of 15% rent to revenue.

Software Review 100

Software Review New York City Salary Employee 100

Duct Tape Marketing

NOVEMBER 21, 2022

One of the greatest ways to do so is hiring a CMO or Chief Marketing Officer, an experienced, result-driven executive responsible for all your marketing efforts. But with an average annual salary of over $330,000 many small to mid-sized businesses can’t easily afford a CMO. Join the Agency Workshop. Find a certified fractional CMO.

Fractional CTO 64

Fractional CTO Small Business Metrics Revenue 64

Hearpreneur

JANUARY 19, 2022

The team, on the other hand, is focused on remaining upbeat, and leaders go out of their way to help employees in any way they can, even if that means staying up late at night to talk them through anything they're going through. My business pivoted as a result of the pandemic by becoming more remote for my employees.

Entrepreneur 118

Entrepreneur Metrics Technical Review North America 118

VC Cafe

APRIL 29, 2020

According to a survey of 87 startups by Viola Ventures , the majority of startups are taking a ‘wait and see’ approach and continue to work from home, and many will control the number of employees in the office going forward. “ UK – Future Fund, a £500 million match funding for high-growth companies.

SBA 124

SBA Technical Review Startup 124

This is going to be BIG.

NOVEMBER 24, 2014

When I was coming out of college, working in finance, I used to think a lot about my salary. I liked maxing out on raises and I liked the feeling I got getting to a six figure salary. It was, in my mind, what the salary meant. As an investor, I get very involved in the hiring process of some of my earliest stage companies.

Salary 130

Salary Venture Capital Equity Finance 130

The Startup Magazine

NOVEMBER 6, 2019

This means securing the funding, business premises, building your business presence online and hiring the perfect human resources. Around 62 percent of small businesses have no staff while 28 percent employ 1-5 employees. However, be sure to assess whether these areas are functional streams of revenue.

Hiring 61

Hiring Employee Entrepreneur Salary 61

Up and Running

SEPTEMBER 17, 2014

For our latest webinar, we discussed “How to Lose an Employee in 10 Days,” outlining major mistakes an entrepreneur or CEO should avoid if they want to hold onto valuable employees. Their mantra is “we love employees,” and this mantra really fits their culture. Great movie.

Employee 86

Employee Video Hiring Forecast 86

Startup Professionals Musings

APRIL 8, 2015

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. One more key employee or one more investor will probably not turn the situation around. Look for examples of similar companies and revenue multiples achieved from acquirers.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

APRIL 10, 2016

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. One more key employee or one more investor will probably not turn the situation around. Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

OnlyOnce

AUGUST 3, 2023

(Post 1 of 4 in the series of Scaling CPO’s) In most startups, the HR function starts out as tactical, because you have to get people hired and paid, and while you might have a founder or early-stage employee who can do these things, often these tasks are frequently outsourced to a PEO. But those things won’t help you scale.

Hiring 62

Hiring Metrics Leadership Early Stage 62

ReadWriteStart

JUNE 14, 2012

Most businesses stay that way - there are many more solo entrepreneurs than business owners with employees. To learn more about how your startup can find, hire and keep the top talent and quality workers it needs to succeed, download this free ReadWriteWeb Report: The Talent Wars: Today’s Toughest Startup Challenge.

Technical Review 159

Technical Review CTO Hire Software Review Startup 159

Up and Running

APRIL 12, 2017

You even started hiring a few employees and your business grew, and it grew fast. hopes to attract $100 million in orders this year, on its way to $4 billion revenue by 2020. Watch what he said here: If you want your company to succeed, you need to engage your employees. But that didn’t happen. It reported that G.E.

Software Review 108

Software Review Employee Australia Forecast 108

ConversionXL

JUNE 8, 2017

It is about focusing your marketing efforts on a few select companies that could represent huge revenue streams. For example, here is a version of the Optimizely’s homepage personalized for Adidas employees : Image Source. The post Personalization: How to Build a Revenue Boosting Program from Scratch appeared first on CXL.

Programming 97

Programming Revenue Analytics Software Review 97