article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

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. Hiring more people isn’t always the right answer.

Startup 418
article thumbnail

How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

Most of this advice boils down to an argument in favor of basic planning before starting a company or raising money. In many ways the fact that it has become so cheap to start a company and relatively cheap to raise angel/seed money that we as an industry have gotten lazy on basic planning. Incumbent Strengths & Weaknesses.

Startup 150
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early. About 18 months ago in early 2008 we hired an analyst (pre-MBA), but wanted to wait until after Summer to hire a post-MBA associate. You have kids, a mortgage, MBA debt? It was May.

article thumbnail

Start Up Business Grants 101: Meaning, Funding & Tips

Board Effect

They simply don’t have the seed money to get a business or organization off the ground. It may also be worthwhile to consider hiring a grant writer to champion the process. The funds you receive from a grant could potentially cover the cost of hiring professional help.

article thumbnail

Choose Your VC Investor Carefully

Both Sides of the Table

For example, a recent phone call I had with a young entrepreneur straight out of one of the most prestigious engineering schools in America he asked, “I have an offer for $400,000 in seed money but the VC wants me to agree now to bring in a new CEO.&# This company is doing its SEED round and they already want to bring someone new in.

Pakistan 297
article thumbnail

The Top 3 Financial Perks of Launching a Startup Company During College

The Startup Magazine

In return, you may be able to get your hands on some seed money for your college startup. Hiring your peers as employees or partners is a win win situation for everybody involved. College campuses are rife with financial opportunities. You just need to go out and look for them. . These include: Young Entrepreneur Council.

article thumbnail

The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. A startup may need to hire a lawyer to understand what the best strategy is given its particular technology space and to guard against being seen as an easy mark. On the other hand, it may encourage other trolls to visit.