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. 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.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

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

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

YoungUpstarts

SEPTEMBER 15, 2015

The right advisor can have a greater impact on the success of your small business than any other hire you ever make. Here are seven ways that advisors can immediately help your small business achieve the next level of success: Assist With Strategies & Connections to Have Record Revenue & Profit in 2016.

CTO Hire 100

CTO Hire Fractional CTO Small Business Hiring 100

ReadWriteStart

JUNE 8, 2021

After launching a new startup, you’ll be interested in growing the business as quickly as possible, thus generating more revenue, securing more stability, and improving your reputation as well. Who you hire matters , and the dynamics of the environment you build will have a massive impact on individual performance. Salary and benefits.

Employee 127

Employee Product Startup Software Review 127

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

Startup Professionals Musings

FEBRUARY 21, 2012

Pay people with equity or future revenue. When I was interviewed for my first startup CEO job, I was expecting a $150,000 salary, but instead was offered an opportunity to contribute $50,000 to the business, and work for equity only. Another one to avoid cash burn for software development is a contract for percent of future revenue.

Burn Rate 232

Burn Rate Startup Salary Equity 232

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

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. Next write your new hire job description.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

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

Startup Professionals Musings

JANUARY 28, 2011

Pay people with equity or future revenue. When I was interviewed for my first startup CEO job, I was expecting a $150,000 salary, but instead was offered an opportunity to contribute $50,000 to the business, and work for equity only. Another one to avoid cash burn for software development is a contract for percent of future revenue.

Burn Rate 231

Burn Rate Startup Salary Equity 231

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

SoCal CTO

SEPTEMBER 27, 2011

For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. For example, suppose you're just two founders and you want to hire an additional hacker who's so good you feel he'll increase the average outcome of the whole company by 20%. n = (1.2 - 1)/1.2 =.167. and we have 11.1%

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

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

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

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

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

ConversionXL

JUNE 8, 2017

It is about focusing your marketing efforts on a few select companies that could represent huge revenue streams. For some products, customers come in all shapes and sizes, from all countries, all backgrounds, all salaries, and all levels of computer skills. If you are in B2B, you’ve certainly heard of account-based marketing by now.

Programming 97

Programming Revenue Analytics Software Review 97

Startup Professionals Musings

FEBRUARY 15, 2023

Most new teams are geographically dispersed these days anyway, so paying rent for an office should be differed to later stages when revenue is plentiful. With the unlimited access to “how-to” videos and detailed instructions on the Internet, you shouldn’t need to hire experts for most things.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

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

Up and Running

FEBRUARY 16, 2022

The financial plan section of your fitness business plan should discuss everything relating to your revenue, income, and budget. It’s also important in this section to state how much budget you are considering putting towards the location of your business and what revenue you will need to generate to afford these costs.

Business Plan 81

Business Plan Software Review Demand Operations 81

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 63

Fractional CTO Small Business Metrics Revenue 63

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

Duct Tape Marketing

OCTOBER 8, 2023

Imagine wielding the power of a marketing wizard without having to afford their six-figure salary. Benefits of Hiring a Fractional CMO If you’re a business owner, the thought of hiring a full-time Chief Marketing Officer (CMO) may have crossed your mind. That’s exactly what becoming a fractional CMO is all about.

Technical Review 74

Technical Review Retention Networking Leadership 74

YoungUpstarts

SEPTEMBER 29, 2014

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. And at the end of the day, all you want to do is catch up on your sleep!

Small Business 165

Small Business Software Review Salary Government 165

Up and Running

JULY 28, 2022

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. You’ll need the EIN to pay taxes for your business, apply for licenses and permits, open a bank account, and hire and pay employees.

Small Business 167

Small Business Intellectual Property Cofounder Software Review 167

ReadWriteStart

JUNE 14, 2012

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. And you need to do it sooner rather than later. So what does it actually take to build a kickass startup team?

Technical Review 159

Technical Review CTO Hire Software Review Startup 159

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. This will keep them sustainable should revenues take a dive.

Entrepreneur 96

Entrepreneur Software Review Technical Review Revenue 96

YoungUpstarts

SEPTEMBER 1, 2015

Generating revenue through sales, especially as start-up capital diminishes, can make or break a company’s success. However, hiring the wrong salespeople costs dearly in time and treasure. Before hiring can commence, clearly defining the structure of the sales team is critical. Hire based on sales DNA and not resume.

Sales 100

Sales Cofounder Sales Cycle Revenue 100

Startup Professionals Musings

MAY 18, 2020

Most new teams are geographically dispersed these days anyway, so paying rent for an office should be differed to later stages when revenue is plentiful. With the unlimited access to “how-to” videos and detailed instructions on the Internet, you shouldn’t need to hire experts for most things.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Startup Professionals Musings

FEBRUARY 5, 2010

Pay people with equity or future revenue. When I was interviewed for my first startup CEO job, I was expecting a $150,000 salary, but instead was offered an opportunity to contribute $50,000 to the business, and work for equity only. Another one to avoid cash burn for software development is a contract for percent of future revenue.

Burn Rate 120

Burn Rate Startup Salary Equity 120

The Startup Magazine

MAY 24, 2022

So if you want to improve how your company operates and how much revenue it brings in, you will need the appropriate and best hiring strategy. But there’s more to hiring someone than just finding the right fit for each of your company’s vacant posts. Hiring people faster not only gets tasks done sooner. Let’s face it.

Salary 125

Salary Hiring Engineer Sales 125

SoCal CTO

NOVEMBER 1, 2010

The very last email I got from him told me the following: Thank you for your time Tony, I understand everyone wants a huge salary, no risk and a cut of the profits. You should avoid spending your time here and instead focus on finding a way to generate revenue or to attract investors so that you can afford to hire someone.

Technical Cofounder 241

Technical Cofounder CTO Hire Equity Sweat Equity 241

YoungUpstarts

FEBRUARY 21, 2017

Over-Hiring Early On. Hiring employees and managers is important for a business. However, hiring a full staff for your startup will kill it almost instantaneously. Without a steady income, you can’t pay the staff their salaries. If it starts to fail in both revenues and sales, don’t be afraid to change it.

Startup 113

Startup Technical Review Hiring Salary 113

YoungUpstarts

AUGUST 28, 2014

If you’re reaching the point where there just aren’t enough hours in the day, should you hire some employees and create an in-house team, or outsource as many roles as possible as you work to get your business to scale? Hiring a part-time employee is another way to play it safe if you’re not sure there’s enough work for a full-time position.

Hiring 189

Hiring New York City New York Forecast 189

crowdSPRING Blog

MARCH 10, 2013

In the creative industries this is an everyday fact of business: overhead is constant, but revenue ebbs and flows throughout the year; some months there are so many clients and so much business that these service providers are forced to hire contractors or freelancers just to handle the extra workload.

Lean 93

Lean Management Salary Hiring 93

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. 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.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120