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Rules of Thumb Business Valuation Methods Explained

Up and Running

Metrics such as discretionary cash flow or business revenue are used. Some reasons why include needing a more detailed picture of your company’s value, submitting taxes, outlining employee stock option plans, or presenting to investors or creditors. Where Gross Profit = Net Sales – Cost of Goods Sold.

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How to Prepare for a Board Meeting to Make Sure you Crush It

Both Sides of the Table

The law firm has done its job of preparing the stock option requests, board meeting minutes, 409a valuations. Often board members themselves don’t do the work to say “what metrics would we like to see.” If you have some key metrics or financial figures that go with the pre-read even better. Sometimes they don’t even know.

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How Great, Operationally-Focused CFO’s Can Transform Your Business

Both Sides of the Table

It freed up Ophir to grow out our sales organization, to work more closely with agencies, to innovate on product and to raise capital. The last thing you want the CEO (or heads of sales, marketing, product) doing is sinking 3 days every month into preparing board packs. The full financial details and metrics were in the deck.

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8 Tips To Get the Most Out of Your Investors and Board

Both Sides of the Table

In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. And you can often throw in a separate action like approving stock-option grants, getting approval for CAPEX spend, discussing fund raising timing – whatever.

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Top 29 Startup Posts May 2010

SoCal CTO

He’d wasted a year of his life and had a pile of stock options that weren’t very interesting. Through advertising or direct sales, these sites harvest intent. Instead of making a few dollars per sale and hoping for thousands of sales, you sell to only a few customers, and charge much higher rates. Tesla is not.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

Your historical trading information including financials and a “customer file” which shows the history of your transactions so that investors can run “cohort” analyses Customer reference, personal references, key team members, compensation, cap table, stock option plan, etc. and then asking to take a brochure home with you.

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Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

A “warrant&# is a right, but not an obligation for a company to buy stock in your company at a future date and at a pre-agreed price. Think of it as similar to an employee stock option. While I’m a huge believer that sales bonuses should always be uncapped, I think capping PBW’s is a good idea.

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