Both Sides of the Table
MARCH 25, 2016
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.
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. Hiring more people isn’t always the right answer.
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Both Sides of the Table
JANUARY 5, 2010
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.
Both Sides of the Table
OCTOBER 25, 2009
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.
Both Sides of the Table
MAY 13, 2013
The Aqui-hire Business. Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. It says if you want to make “real” money - quit.
Both Sides of the Table
JUNE 17, 2017
If you hire 6 senior 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 6 months. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth.
Both Sides of the Table
NOVEMBER 18, 2012
Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. You hire them, you own them now. Hire fast, fire faster. Many times it’s less. To hide your demons so that you don’t scare the bejesus out of your employees.
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