Both Sides of the Table

SEPTEMBER 17, 2011

One great solution I see is to hire an outstanding CFO who runs both. This person can do budgeting, forecasting, strategic planning, legal, HR, office moves, etc. Dilute your cash, equity or both. But they aren’t the COO. “We’re all equal co-founders and we don’t care about titles.&# What will it do?

Operations 292

Operations CTO Hire Startup Early Stage 292

Hunter Walker

AUGUST 7, 2017

Satya and I rarely see less than a 10% pool created at seed and Series A, but are increasingly engaging with founders about 12-15% pools, especially if you’re going to be hiring in-demand engineers (computer vision, AI) and/or (more typically post Series A), building out a senior executive team.

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

Board Effect

FEBRUARY 10, 2021

Strong financial management makes it possible for healthcare organizations to introduce new treatments, purchase new equipment, and hire skilled staff with the goal of providing high quality healthcare. Perform a short-term and long-term debt equity analysis. Overview of Financial Practices for Healthcare Organizations.

Technical Review 66

Technical Review Artificial Inteligence Software Review Government 66

Both Sides of the Table

NOVEMBER 19, 2009

But “he didn’t have the budget to hire a developer until he had raised money!&#. He would have found somebody technical and inspired that individual to work for equity or deferred payment. He still had no website and no prototypes. I said that was my point. “A real entrepreneur would have done it anyway.

Entrepreneur 414

Entrepreneur Fractional CTO Technical Review CTO Hire 414

YoungUpstarts

MAY 17, 2019

For the good ones, challenge them to help grow the company and incentivize them to stay through promotions, profit sharing, or equity. Use the cash forecast in the report to secure better terms on your business loan or lock the owner into seller financing. The diligence: Hire financial professionals to help with your due diligence.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. If so, whatever revenue forecast and sales cycle estimates you had are no longer valid. If it’s just three-months, (looking more unlikely by the day) then an immediate freeze on variable spending (hires, marketing, travel, etc.)

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

OnlyOnce

JULY 9, 2013

Chapter 10: The Hiring Challenge…Unique Challenges for Startups, Recruiting Outstanding Talent, Staying “In-Market”, Recruitment Tools, The Interview: Filtering Potential Candidates, Two Ears One Mouth, Who Should You Interview? Chapter 22: Forecasting and Budgeting…Rigorous Financial Modeling, Of Course You’re Wrong—But Wrong How?,

Startup 95

Startup Advisory Board Elevator Pitch Forecast 95

Up and Running

JULY 14, 2015

Now, if you only needed $2 million of new funding, the investor would receive 50 percent equity. If the new funding increases to $3 million, however, they would have a 60 percent equity stake on the same valuation. You hire more staff than you need, become inefficient with operations, or move to bigger offices.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Both Sides of the Table

MAY 19, 2018

Investors love to be able to see what you told them in forecasts in prior years and then compare with how you actually performed. In this way investors can make some assessments of how well they should believe your future forecasts that you are showing them a year later. and then asking to take a brochure home with you.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

ReadWriteStart

AUGUST 10, 2023

Additionally, AI can streamline the onboarding process by automatically collecting and organizing relevant information and providing it to new hires in a clear and easy-to-digest manner. By using AI to streamline these processes, businesses can save time and money while improving overall employee performance.

Artificial Inteligence 120

Artificial Inteligence Social Media Employee Forecast 120

Eric Friedman

JANUARY 23, 2022

What equity you give early stage advisors matters. The net/net is that early advisors who can 10X your business should formally be involved, usually with equity and sometimes with investment. Having advisors invest in your company and vesting into early stage equity is a powerful combination. Hiring takes longer than you think.

Early Stage 78

Early Stage Equity .Net Vesting 78

Up and Running

AUGUST 28, 2018

Revisit and update it regularly by comparing your forecasts to your actuals and adjusting as necessary. Hiring plans : Outline who, if anyone, you need to hire to fill skills gaps in your management team and how much you plan to pay them. Use it as a tool, especially around your financials. Company overview.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

YoungUpstarts

MAY 16, 2018

Only after his company was underway did his investors insist he write a business plan, with detailed sales forecasts, staffing strategies, pricing regimens, and financial projections including when he would be able to take the company public. Who’s more likely to successfully make that first sale or hire?

Silicon Valley 157

Silicon Valley Forecast Venture Capital Business Plan 157

crowdSPRING Blog

JANUARY 5, 2012

Stop whining and start hiring remote workers – [link]. CEC’s Startup Forecast – “Never been a better time to start a company in Chicago” – [link]. Experienced entrepreneurs preserve equity – [link]. Stop whining and start hiring remote workers – [link]. – [link].

Social Media 92

Social Media Small Business Design Media 92

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.    And, while debt is less costly than equity, it can bankrupt a company more quickly than more expensive equity might.

Finance 83

Finance Bootstrapping Startup Equity 83

Up and Running

JULY 22, 2014

Sales forecast. equity (for most small businesses, this is just the owner’s equity, but it could include investors’ shares, retained earnings, stock proceeds, etc.). It’s called a balance sheet because it’s an equation that needs to balance out: Assets = Liabilities + Equity. Sales forecast. Cash flow statement.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

Both Sides of the Table

MARCH 31, 2012

Sales people aren’t always motivated only by cash – especially in early-stage business you need to focus on equity because cash won’t be plentiful. I don’t recommend that you hire traditional sales people when your company is too early-stage. Specifically, 1.

Startup 319

Startup Early Stage Sales Cofounder 319

Up and Running

FEBRUARY 12, 2019

Investors want to hear about your first customers, other investments put into the company (including your own sweat equity), key media placement, signed letters of intent (LOI) to purchase/partner, product and customer milestones , key hires, and so on. Share what your assumptions are about your business model.

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

Steve Blank

APRIL 1, 2020

Forecasted recovery date. Sales pipeline/forecast. Award equity to employees equal to the value of their reduced salaries. Or if you have sufficient cash, now is the time to hire great people who were never available. When hiring began again, everyone was relieved: “The worst is over. Shelter in place yes/no?

South Korea 333

South Korea Salary Business Model China 333

Both Sides of the Table

OCTOBER 14, 2015

The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. And I actually think we could learn a lot from public investors even if we don’t always feel culturally aligned.

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Growthink Blog

APRIL 3, 2012

Conversely, by researching the growth profile of similar firms, you can come up with more credible forecasts that will escape skepticism and show investors you really understand the business and its potential. Since achieving such a feat is extremely rare. Likewise, you can boost credibility by getting customers.

Private Equity 97

Private Equity Venture Capital Equity Forecast 97

The Next Web

MARCH 2, 2014

This process included several rounds of financial forecasting to understand the cost of achieving where we wanted the business and brand to be, and whether we could pay for that cost ourselves. Should we finance with debt or equity? What are the main considerations when exploring third-party investments? Take your time.

Liquidity Event 139

Liquidity Event Equity Finance Stock Options 139

Up and Running

JANUARY 24, 2014

Investors want to hear about your first customers, other investments put into the company (including your own sweat equity), key media placement, signed letters of intent (LOI) to purchase/partner, product and customer milestones, key hires, etc. Share what your assumptions are about your business model. 0.22% average conversion rate.

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

Up and Running

AUGUST 1, 2017

Venture capitalists essentially buy equity in your brand, which means they now have a say in how you operate. Aside from perfecting your product or service, you have to tend to other equally important tasks such as marketing , hiring , forecasting , and so on. You give up some control of your company.

Venture Capital 113

Venture Capital Cofounder Finance Security 113

thinkspace.com

SEPTEMBER 7, 2012

How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Founders. Equity for Employees. Bookkeeper.

Equity 62

Equity Employee Founder CTO Hire 62

Up and Running

MAY 23, 2016

If you don’t yet have a team yet, list the roles you need to hire for. If you don’t yet have a team yet, list the roles you need to hire for. While it’s useful to be able to have a sales forecast and expense budget early on, it’s not something you need until you’ve validated your idea. The Recommended Sales Forecasting Method.

Software Review 74

Software Review Software Delaware Forecast 74

Early Growth Financial Services

JUNE 24, 2015

San Francisco, CA (PRWEB) June 24, 2015 Early Growth Financial Services (EGFS), an accounting and financial services firm that offers an extensive range of outsourced financial support to early-stage companies, announces the hirings of David Horning, Jerry Saenz, and Perry Panchmatia.

San Francisco 28

San Francisco Forecast Early Stage Equity 28

Up and Running

MAY 1, 2014

Use this chapter to describe your current team and who you need to hire. Your business plan isn’t complete without a financial forecast. Business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. Sales Forecast.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

VC Cafe

SEPTEMBER 26, 2022

For more about forecasting growth in these uncertain times, check out Sequoia’s “ Adapting to Endure ” presentations published in May 2022. So in terms of hiring, get people that can help you build the product faster… anything that minimizes the time between observing a need or a problem, and the execution or the fix for it.”

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Up and Running

MAY 21, 2015

All the other sharks typically make a traditional equity investment; for example they’ll invest $100,000 at a $1,000,000 business valuation, and take 10 percent of the business. That’s called a traditional equity investment. Mr. Wonderful, by contrast typically makes his investment in the form of Debt Securities With Warrants.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

www.mint.com

MARCH 9, 2010

If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” He would publish a $5 million 6-month sales forecast and actually close $87,000.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Up and Running

MAY 15, 2018

Funding is crucial for improving technology, hiring the right people, and launching a comprehensive marketing strategy to get a foothold in the market. Your business plan also needs to have a realistic financial forecast. They tend to invest large sums of money (but no more than $1 million) in exchange for equity in the startup. .

SBA 84

SBA Angel Investor Technical Review Startup 84

BeyondVC

JANUARY 2, 2006

From a philosophical point of view, I view compensation as the combination of salary, bonus (if any), and equity. For cash starved startups, having management and employees believing in the opportunity and team and being motivated by equity is key to success. The next question you may have is what is the definition of market.

Management 60

Management Equity Forecast Salary 60

Berkonomics

OCTOBER 15, 2020

But when forecasting the ultimate viability of a business, many times an entrepreneurial founder uses a low, unsustainable salary rate for him or herself in order to show early breakeven. If you had to replace yourself with a professional hired to duplicate your skills, what would you have to pay in salary and incentive today?

Sweat Equity 62

Sweat Equity Equity Business Plan Balance Sheet 62

Startup Lessons Learned

JULY 6, 2011

Most of our management tools, like planning and forecasting, require a long and stable operating history. Consider the total amount of funding for doomed projects that comes from VC’s, large company M&A departments, government grants, and private equity firms. How do you know when to pivot and when to persevere?

Lean 167

Lean Startup Metrics Private Equity 167

YoungUpstarts

MAY 8, 2014

Along with several partners, I’ve built two thriving companies: Direct Mail Express (which now employs over 400 people) and Response Mail Express (which was eventually sold to an equity fund, Huron Capital Partners). Refusing to hire people who are smarter than you.

Technical Review 254

Technical Review Entrepreneur Florida Cofounder 254

Duct Tape Marketing

JUNE 20, 2023

Were showing positive return on equity, were showing positive growth per, in value per customer through their digital initiatives. If only we could do amazing, you know, supply chain forecasting, right? 07:47): About 25% of them were actually making money. You could not tell that if you just looked at the customer apps, right?

Technical Review 65

Technical Review Silicon Valley Generative AI Arizona 65