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

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

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

Startup Professionals Musings

AUGUST 18, 2023

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. Startups cost money but don’t pay a salary before revenue.

Private Equity 255

Private Equity Salary Cofounder Equity 255

Startup Professionals Musings

FEBRUARY 11, 2023

Celebrate the ability to pay yourself a salary. Having enough revenue to finally give yourself a salary is an inspiring event, and one that you should savor. New business models that provide an ongoing revenue stream, or a secondary stream from advertising, raise your margins and can give you some additional satisfaction.

Sweat Equity 296

Sweat Equity Startup Salary Viral 296

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. Most successful entrepreneurs take only a very minimum salary during the formative business years and reinvest all profits back into the business for organic growth.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

Startup Professionals Musings

APRIL 7, 2023

Those who respond with one of the wrong answers, such as “I want to pay myself a salary,” usually go home empty-handed. Funding for founder salaries at this stage is a red flag. You may pay salaries to your team, but your salary should come from earnings, when they occur.

Elevator Pitch 228

Elevator Pitch Salary Angel Investor Viral 228

Startup Professionals Musings

FEBRUARY 2, 2013

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities. unless it relies wholly on donations.

Revenue 262

Revenue Startup United States Africa 262

Startup Professionals Musings

MAY 16, 2020

Celebrate the ability to pay yourself a salary. Having enough revenue to finally give yourself a salary is an inspiring event, and one that you should savor. New business models that provide an ongoing revenue stream, or a secondary stream from advertising, raise your margins and can give you some additional satisfaction.

Sweat Equity 435

Sweat Equity Salary Viral Leadership 435

Startup Professionals Musings

DECEMBER 17, 2013

For starters, here is my selection of some key metrics that every six-sigma joint like GE tracks without thinking, but that too many small businesses haven’t yet formalized: Sales revenue. For example, sales productivity is simply actual revenue divided by the number of sales people. Size of gross margin. Overhead costs.

Metrics 252

Metrics Technical Review Retention Acquisition 252

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

Startup Professionals Musings

JULY 12, 2020

Those who respond with one of the wrong answers, such as “I want to pay myself a salary,” usually go home empty-handed. Funding for founder salaries at this stage is a red flag. You may pay salaries to your team, but your salary should come from earnings, when they occur.

Elevator Pitch 336

Elevator Pitch Salary Angel Investor Viral 336

Startup Professionals Musings

NOVEMBER 30, 2020

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. Startups cost money but don’t pay a salary before revenue.

Entrepreneur 321

Entrepreneur Private Equity Startup Salary 321

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. Most successful entrepreneurs take only a very minimum salary during the formative business years and reinvest all profits back into the business for organic growth.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Startup Professionals Musings

SEPTEMBER 26, 2018

Others wait until the new business starts to generate revenue and profit before making the move. In my experience as a startup advisor, I find the minimum time to revenue is at least a year. Of course, you might be able to pay yourself a salary from the investment, but this will be minimal and critically watched. Which is right?

Salary 383

Salary Cofounder Lean Revenue 383

Startup Professionals Musings

MARCH 28, 2022

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities like the Salvation Army. unless it relies wholly on donations.

Distribution 250

Distribution Africa United States Salary 250

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. Look for examples of similar companies and revenue multiples achieved from acquirers. Calculate employee stock option values and vesting times, as well as salary.

Burn Rate 120

Burn Rate Sweat Equity Technical Review Intellectual Property 120

Startup Professionals Musings

NOVEMBER 28, 2013

Money flowing in has to exceed all costs, including inventory, credit, and your salary, before there is a real profit. Many startups see initial revenue from customers, and love the fast growth, but fail to anticipate the cost of early vendor payments, monthly overhead costs, and later taxes.

Technical Review 251

Technical Review Entrepreneur Salary Finance 251

Startup Professionals Musings

OCTOBER 7, 2022

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Ancillary objectives, like retiring existing debt, buying a building or paying salaries to people with equity ownership will not get traction.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Dilution 304

Startup Professionals Musings

MARCH 22, 2023

Rather than a focus on salary and perks, your focus is on customers, revenue, and operations. For some people, business is just a job, whereas with ownership thinking, your business health is the real measure of your personal success and growth. Your personal goal is to succeed in business.

Metrics 279

Metrics Startup Agile Salary 279

Startup Professionals Musings

APRIL 8, 2015

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. Look for examples of similar companies and revenue multiples achieved from acquirers. Calculate employee stock option values and vesting times, as well as salary.

Technical Review 120

Technical Review Due Diligence Burn Rate Sweat Equity 120

Startup Professionals Musings

FEBRUARY 17, 2021

With a little help from a friend, you can handle expenses, revenue, and payroll, with QuickBooks or a similar package. As an old rule-of-thumb, startups realized that employees cost double the salaries paid, to cover office costs, health-care benefits, and workers compensation. Work out of your home, and keep your own books.

Cost 405

Cost Entrepreneur Burn Rate Social Media 405

Startup Professionals Musings

JUNE 11, 2012

I’ll try to offer some guidelines to address these issues, but I generally recommend you keep the day job until your new company is producing real revenue. There is nothing wrong with a dependable salary, medical benefits, and a contributing 401(k) retirement savings account. Marty Zwilling.

Entrepreneur 239

Entrepreneur Cofounder Angel Investor Partner 239

Startup Professionals Musings

JANUARY 5, 2022

Ad revenue is still down as companies right-size marketing budgets. If you are an entrepreneur at heart, don’t be doomed to a life of trudging through jobs, depending on someone else for salary and bonuses and health care and retirement, a life's work without ownership or upside. Low cost infrastructure. Make them an offer.

Startup 258

Startup Cofounder Salary Advertising 258

Startup Professionals Musings

JANUARY 4, 2020

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Ancillary objectives, like retiring existing debt, buying a building or paying salaries to people with equity ownership will not get traction.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Startup Professionals Musings

MARCH 23, 2011

I’ll try to offer some guidelines to address these issues, but I generally recommend you keep the day job until your new company is producing real revenue. There is nothing wrong with a dependable salary, medical benefits, and a contributing 401(k) retirement savings account. Marty Zwilling.

Founder 233

Founder Startup Cofounder Angel Investor 233

Startup Professionals Musings

JUNE 26, 2019

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities like the Salvation Army. unless it relies wholly on donations.

Distribution 187

Distribution Africa United States Salary 187

Startup Professionals Musings

MAY 31, 2014

Those who respond with one of the wrong answers, such as “I want to pay myself a salary,” usually go home empty-handed. Funding for founder salaries at this stage is a red flag. You may pay salaries to your team, but your salary should come from earnings, when they occur.

Elevator Pitch 285

Elevator Pitch Salary Angel Investor Viral 285

Startup Professionals Musings

AUGUST 5, 2018

Those who respond with one of the wrong answers, such as “I want to pay myself a salary,” usually go home empty-handed. Funding for founder salaries at this stage is a red flag. You may pay salaries to your team, but your salary should come from earnings, when they occur.

Elevator Pitch 139

Elevator Pitch Salary Angel Investor Viral 139

Startup Professionals Musings

FEBRUARY 10, 2014

It will get you a higher starting salary, and a valuable edge in your credentials at every promotion opportunity. The company now has more than 160,000 employees and revenues of $44 billion. For business professionals who aspire to an executive position in a large company, most people agree that an MBA is always positive.

Entrepreneur 264

Entrepreneur Salary .Net Revenue 264

Startup Professionals Musings

JULY 30, 2016

Those who respond with one of the wrong answers, such as “I want to pay myself a salary,” usually go home empty-handed. Funding for founder salaries at this stage is a red flag. You may pay salaries to your team, but your salary should come from earnings, when they occur.

Elevator Pitch 120

Elevator Pitch Salary Angel Investor Viral 120

Startup Professionals Musings

APRIL 2, 2016

Celebrate the ability to pay yourself a salary. Having enough revenue to finally give yourself a salary is an inspiring event, and one that you should savor. New business models that provide an ongoing revenue stream, or a secondary stream from advertising, raise your margins and can give you some additional satisfaction.

Sweat Equity 120

Sweat Equity Salary Startup Viral 120

Startup Professionals Musings

JUNE 25, 2017

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities like the Salvation Army. unless it relies wholly on donations.

Distribution 140

Distribution United States Africa Salary 140

Startup Professionals Musings

MARCH 30, 2019

Ad revenue is still down as companies right-size marketing budgets. If you are an entrepreneur at heart, don’t be doomed to a life of trudging through jobs, depending on someone else for salary and bonuses and health care and retirement, a life's work without ownership or upside. Low cost infrastructure. Make them an offer.

Cofounder 200

Cofounder Washington Salary Advertising 200

Startup Professionals Musings

NOVEMBER 14, 2012

Here is my selection of ten key metrics that every six-sigma joint like GE tracks without thinking, but too many small businesses only monitor haphazardly, if at all: Sales revenue. For example, sales productivity is simply actual revenue divided by the number of sales people. Size of gross margin. Overhead costs.

Metrics 266

Metrics Retention Acquisition Salary 266

Startup Professionals Musings

APRIL 5, 2014

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities like the Salvation Army. unless it relies wholly on donations.

United States 214

United States Africa Salary LLC 214

Startup Professionals Musings

APRIL 15, 2016

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. Startups cost money but don’t pay a salary before revenue.

Entrepreneur 120

Entrepreneur Private Equity Salary Cofounder 120