Startup Professionals Musings

MAY 14, 2023

Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

APRIL 13, 2020

Focus on operational processes, rather than innovative new ones. If you are a typical startup operation, consisting of an unpaid founder and co-founder, both working part-time, outsourcing is not likely the solution to your resource constraints.

Intellectual Property 306

Intellectual Property Non-disclosure Agreement Software Review Technical Review 306

Startup Professionals Musings

MAY 1, 2023

Cofounders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The challenge is for real cofounders to keep their equity percentage above 50%, or they effectively lose control of operational decisions.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

Startup Professionals Musings

SEPTEMBER 10, 2018

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. Giving a co-founder a salary won’t get you the “fire in the belly” you want. Each co-founder should get equity for value, based on these key variables: Lived a key role in a previous startup.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

NOVEMBER 4, 2022

A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. The operations superstar. The financial suit. You need a trained CFO to fill the financial gaps on your team.

Technical Cofounder 309

Technical Cofounder Cofounder Advisory Board Startup 309

Startup Professionals Musings

AUGUST 19, 2020

Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

JUNE 18, 2016

Due to founder visibility, the team is so tuned in to the visionary and current direction that every turn to the right to pursue a new idea turns the whole team to the right. Balance here comes again from the operational expert, who is very good at leading, managing, and holding people accountable. Cause organizational whiplash.

Cofounder 120

Cofounder Founder Entrepreneur Startup 120

Startup Professionals Musings

FEBRUARY 8, 2021

Unless you have a co-founder or two with the business skills to complement your technical ones, you need a friendly Advisory Board. The cost of a co-founder is usually fifty percent of your equity. Building and managing a business is a wholly different world from building an innovative solution. What you learn will apply to employees.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

Startup Professionals Musings

DECEMBER 13, 2019

As the business operation and the team grows, regular and effective communication from key personnel is critical. In reality, there are an infinite number of ways to jeopardize the future of your business, but these are common ones I see that are often invisible to the business owner or founder.

Technical Review 306

Technical Review Metrics Social Media Channel 306

Startup Professionals Musings

DECEMBER 5, 2021

The founder explains that the product or service is so “buzz-worthy” that the merits will spread rapidly through word-of-mouth only, meaning people loving it and recommending it to their friends. That’s a double death wish.

Viral 348

Viral Marketing SEM Campaign 348

Startup Professionals Musings

JULY 16, 2017

Very few entrepreneurs have the range of skills and experience to be the solution creator as well as business creator, or operational as well as sales leader. In fact, I would broaden the definition of partner from co-founder to “business partner.” Operate with a comparable level of integrity.

Partner 140

Partner Software Review CTO Hire Cofounder 140

Startup Professionals Musings

FEBRUARY 9, 2020

A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. The operations superstar. The financial suit. You need a trained CFO to fill the financial gaps on your team.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

JULY 20, 2013

After working with dozens of startup founders, I’m still amazed that some seem to be able to do the job easily and effectively, always in control, while others always seem to be struggling, out-of-control, and fighting the latest crisis. In that context, startup founders should carefully review the points made by Denny F.

Founder 260

Founder Leadership Employee Management 260

Startup Professionals Musings

JULY 14, 2019

The inherent conflicts between innovation and ongoing operations are simply too fundamental and too powerful for one person to tackle alone. What you want is integration with real world operations, not an undisciplined and chaotic mess. The first principle is to do no harm to existing operations. Everyone can be an innovator.

Founder 236

Founder Bandwidth Operations Entrepreneur 236

Startup Professionals Musings

JUNE 28, 2021

It doesn’t seem to matter what the founders’ projections are, or how fast they believe they will turn profitable. I predict that angel investors, who are generally early adopters, will actually be quick to adapt to the new requirements and online systems, and will operate side by side with the new influx of non-accredited investors.

Angel Investor 361

Angel Investor Accredited Investor IRR Angel Groups 361

Startup Professionals Musings

SEPTEMBER 29, 2018

Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. 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

Startup Professionals Musings

JULY 29, 2019

Some company founders believe a stronger product will solve all growth problems, including silos and lack of marketing. The solution is to always be hiring and developing people, including diversity of thought, background, and operating style. Trying to operate with too much or not enough process.

Leadership 217

Leadership Analytics Hiring Operations 217

Startup Professionals Musings

DECEMBER 24, 2018

Based on my experience, creating a new business is at least as difficult as creating an innovative solution, and it takes a knowledge of finance, operations, customers and the marketplace. Plan to and assemble the right team, including co-founders. Building and running a business is not a solo operation.

Angel Investor 249

Angel Investor Cofounder Finance Operations 249

Startup Professionals Musings

MARCH 18, 2023

Due to founder visibility, the team is so tuned in to the visionary and current direction that every turn to the right to pursue a new idea turns the whole team to the right. Balance here comes again from the operational expert, who is very good at leading, managing, and holding people accountable. Cause organizational whiplash.

Partner 206

Partner Cofounder Startup Bandwidth 206

Startup Professionals Musings

AUGUST 31, 2019

In addition, huge amounts of executive time are required, as well as hits to key operational, accounting, and communication processes. Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas.

IPO 210

IPO SEC Prospectus Startup 210

Startup Professionals Musings

JULY 26, 2020

Most startup founders voluntarily exit or are pushed out, and the fun is gone. Public ownerships usually lends prestige and credibility to your sales, marketing, and acquisition efforts, but it may work counter to your vision of saving the world. Analysts want escalating profits. Public companies bring new expectations of benefits.

Cost 319

Cost IPO Exit Strategy Initial Public Offering 319

Startup Professionals Musings

AUGUST 8, 2014

Focus on operational processes, rather than innovative new ones. If you are a typical startup operation, consisting of an unpaid founder and co-founder, both working part-time, outsourcing is not likely the solution to your resource constraints.

Intellectual Property 238

Intellectual Property Non-disclosure Agreement Software Review Offshore 238

Startup Professionals Musings

JULY 11, 2012

Creative or operational. Operational products, like process automation or reservation systems, may be large but mundane, and more easily outsourced. Operational products, like process automation or reservation systems, may be large but mundane, and more easily outsourced.

Intellectual Property 222

Intellectual Property Non-disclosure Agreement Non-Compete Vietnam 222

Startup Professionals Musings

AUGUST 24, 2016

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. Giving a co-founder a salary won’t get you the “fire in the belly” you want. Each co-founder should get equity for value, based on these key variables: Lived a key role in a previous startup.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

Startup Professionals Musings

OCTOBER 5, 2014

Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. 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

Startup Professionals Musings

SEPTEMBER 11, 2017

In addition, huge amounts of executive time are required, as well as hits to key operational, accounting, and communication processes. Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas.

IPO 218

IPO SEC Prospectus Technical Review 218

Startup Professionals Musings

APRIL 17, 2011

Creative or operational. Operational products, like process automation or reservation systems, may be large but mundane, and more easily outsourced. Operational products, like process automation or reservation systems, may be large but mundane, and more easily outsourced.

Intellectual Property 225

Intellectual Property Non-disclosure Agreement Non-Compete Vietnam 225

Startup Professionals Musings

FEBRUARY 24, 2019

The founder explains that the product is so “buzz-worthy” that usage will spread rapidly through word-of-mouth only, meaning people loving it and recommending it to their friends. Every time I challenge a business plan with little or no budget for marketing, I get the answer that they will be using “viral” marketing, which costs nothing.

Viral 268

Viral Marketing SEM Campaign 268

Startup Professionals Musings

DECEMBER 12, 2013

In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We You really need a partner who is complementary, and can tackle the operational roles, like marketing, finance, and sales.

Cofounder 240

Cofounder Founder Sweat Equity Startup 240

Startup Professionals Musings

OCTOBER 18, 2023

Most startup founders don’t relish the thought of managing repeatable processes, greedy stockholders, and endless regulation reports. New startup founders keep all the operating metrics they need in their head. Running a mature company is totally different from running a startup. Set your startup health gauges and use them.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

Startup Professionals Musings

NOVEMBER 4, 2013

Even in most of these cases, the original startup founders were pushed out, or heavily supplemented, with “experienced” executives. Sure, there are examples of Founders who have survived and prospered, such as Bill Gates and Larry Page, but these guys are the exception, not the rule. business entrepreneur exit founder IPO startup'

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

Startup Professionals Musings

JANUARY 20, 2016

Focus on operational processes, rather than innovative new ones. If you are a typical startup operation, consisting of an unpaid founder and co-founder, both working part-time, outsourcing is not likely the solution to your resource constraints.

Intellectual Property 120

Intellectual Property Non-disclosure Agreement Software Review Technical Review 120

Startup Professionals Musings

FEBRUARY 21, 2012

For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. This will equate to 2 working founders (taking no salary), hiring a 5-person development team for a year. A good rule of thumb for most startups is a burn rate of less than $50,000 per month.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Startup Professionals Musings

APRIL 4, 2011

After working with dozens of startup founders, I’m still amazed that some seem to be able to do the job easily and effectively, always in control, while others always seem to be struggling, out-of-control, and fighting the latest crisis. In that context, startup founders should carefully review the points made by Denny F.

Founder 263

Founder Startup Leadership Employee 263

Startup Professionals Musings

OCTOBER 10, 2014

With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Some founders are too focused on quick repayment, and they compromise strategic decisions. Loans are a safer option than equity.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

JUNE 5, 2017

The best founders operate with a key set of internal principles that allow them to break through all but the toughest business obstacles. He cites several studies, in addition to his own experience, that highlight the following key people drivers to business success: Founders need to be driven by impact rather than money.

Technical Review 152

Technical Review Stealth Lean Social Media 152

Startup Professionals Musings

NOVEMBER 8, 2012

In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We You really need a partner who is complementary, and can tackle the operational roles, like marketing, finance, and sales.

Cofounder 244

Cofounder Founder Sweat Equity Partner 244