Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

Founder 245

Founder Technical Review CTO Hire IPO 245

A Smart Bear: Startups and Marketing for Geeks

NOVEMBER 7, 2017

The company landed one big customer representing 80% of total revenue, but that customer canceled. A suitable replacement is too rare; it takes too long to find someone, convince them to join for almost no salary, and get them up-to-speed and productive. Which means they have to stock large amounts of gasoline.

Software Review 294

Software Review Channel Revenue Non-Compete 294

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. Refactoring” organizational debt. the company had.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

SoCal CTO

SEPTEMBER 27, 2011

Paul Graham provides what is roughly the core formula for equity at any point in The Equity Equation : You can use the same formula when giving stock to employees, but it works in the other direction. Suppose further that he's going to cost $60k a year in salary and overhead, x 1.5 = $90k total. Stock vests for 4 years.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

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. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

Startup 418

Startup Revenue Technical Review Flash 418

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 Africa United States 262

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.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

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 Angel Investor 304

Steve Blank

MARCH 17, 2020

To answer the first question, take stock of your current gross burn rate i.e. how much cash are you spending each month. And how much are variable expenses (salaries, consultants, commission, travel, AWS/Azure charges, supplies, etc.?). Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Hearpreneur

JANUARY 1, 2023

Thanks to Abdul Saboor, The Stock Dork ! #2- 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. Photo Credit: Eva Tian.

Entrepreneur 89

Entrepreneur Software Review Technical Review Revenue 89

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 Sweat Equity Burn Rate 120

ReadWriteStart

JULY 7, 2023

Revenue and profit are two classic indicators of a successful ROI. When basing on a salary of $15 an hour, a company could be spending over 1k based on 71 hours of training. Do you know which under-the-radar stocks the top hedge funds and institutional investors are investing in right now? revenue increase.

Programming 148

Programming Developer United States Institutional Investors 148

YoungUpstarts

MARCH 29, 2018

Make sure you allow for any difference in revenue between what was predicted in your plan and what you are taking in reality. It’s entirely possible that you should be spending more, i.e. buying more stock so that you never run out and lose sales as a consequence. Get the infrastructure sorted. Monitor your purchase costs.

Technical Review 100

Technical Review .Net Warrant Cost 100

Up and Running

JULY 22, 2014

It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. how you make money.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

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

Startup Professionals Musings

JANUARY 5, 2022

Ad revenue is still down as companies right-size marketing budgets. As a founder, you're buying stock with work. 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.

Startup 258

Startup Cofounder Salary Advertising 258

Board Effect

NOVEMBER 22, 2019

Every year, nonprofit organizations must file Form 990, Form 990-EZ or Form 990-N with the Internal Revenue Service (IRS). Gifts of stock are considered a donation of property. Nonprofits are allowed to pay their members, officers and directors through salaries and reimbursable expenses.

Government 59

Government Software Review Stock Retention 59

A Smart Bear: Startups and Marketing for Geeks

DECEMBER 21, 2009

If you had zero revenue from now on, on what date would you run out of money? Second, you know the length of your fuse even in event of disaster (if you have revenue) or if you never manage to land a customer (if you're just starting out). It could be a new partner willing to work for stock. Cartoon by Andertoons.

Startup 315

Startup Revenue Cofounder Sales 315

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

Hearpreneur

JANUARY 19, 2022

Although our in-person services were put on hold, our eCommerce products, including virtual services tripled in revenue. Due to that, we decided to widen our client base to increase our revenue. Thanks to Adam Garcia, The Stock Dork ! #10- It’s not a secret that businesses spend a good percentage of the revenue to pay employees.

Entrepreneur 113

Entrepreneur Metrics Technical Review North America 113

YoungUpstarts

JULY 16, 2020

The C Corporation is often the best choice for companies that want to take on capital from investors or sell shares of stock. What if you want to sell shares of stock, take on investors or have more flexibility in the ownership of your business? Sell Shares/Take On Business Partners.

LLC 255

LLC Bankruptcy Venture Capital Stock 255

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

YoungUpstarts

SEPTEMBER 23, 2020

And because the price of any commodity or stock is not static and changes every day, you might not understand how to read trends over longer periods. You would want to invest some of your small business revenue anyway, and since gold has always been a great inflation hedge, it seems the natural choice.

Institutional Investors 241

Institutional Investors Government Salary Stock 241

VC Cafe

MARCH 11, 2010

It’s also an uncertain exit for the entrepreneurs, as they are typically restricted to sell any of their stock in the first 180 days following the IPO, and even then they can sell no more than 1% of stock a month. Eyeblaster is trying to raise $115 million by selling stock. Revenue inched up only two percent to $65.1

IPO 68

IPO SEC Initial Public Offering Stock 68

ReadWriteStart

JANUARY 28, 2022

The market regards equity as an ownership “share” in a corporation’s income revenue stream. Common stock. The holding of common stock in a company indicates ownership in the corporation. Investors of common stock are eligible for : The choice of the Board of Directors. What is Company Equity?

Valuation 108

Valuation Equity Warrant Common Stock 108

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

Both Sides of the Table

AUGUST 28, 2009

I know that we haven’t brought in revenue as quickly as we had hoped. They haven’t hit their revenue targets. Join because you’ll make a good not great salary. We do hand out stock options. I know that we’ve made some mistakes. I know it sucks that we had to reduce staff. Believe me.

PR 331

PR Software Review Ireland Germany 331

Both Sides of the Table

APRIL 27, 2010

I was paid less in salary in 2004 than I was paid at the job I quit in 1999 (a job I had held 8+ years). I learned how to retain employees when stock options were no longer a real currency. and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue. I learned about revenue recognition.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Berkonomics

APRIL 16, 2020

Rent and other fixed costs continue, even when revenues have dried up – a fatal combination. Raising money during this crisis will be almost impossible, even from friends and family shocked by the stock market declines. Stocks will climb again. Plan for reductions in fixed overhead, salaries, and other costs now.

SBA 87

SBA Burn Rate Salary Stock 87

Hearpreneur

JULY 21, 2019

Given that traditional employment has payment ceilings, I think people are becoming more and more attracted to the idea that they can out-earn their current salary with the path of entrepreneurship. Thanks to DrewDuBoff. #2- 2- More entrepreneurs with great flexibility. Photo Credit: Carly Campbell. Corporations are not good at either.

Entrepreneur 115

Entrepreneur Technical Review Artificial Inteligence Merger 115

Berkonomics

OCTOBER 21, 2021

Should be overwhelm prospective employees with stock options and perks? Salaries or hourly wages must be within reasonable limits set by the industry and matched by the competition, both regionally and for the same job classification. Or concentrate our available resources on just plain money as an attraction? Some obvious qualifiers.

Employee 62

Employee Stock Options Salary Stock 62

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. Don’t be afraid to pivot The collapse of SVB spurred us to do a deep evaluation of how we’re generating revenue and value for customers.

Early Stage 112

Early Stage Los Angeles Silicon Valley Cofounder 112

Startup Professionals Musings

MARCH 30, 2019

Ad revenue is still down as companies right-size marketing budgets. As a founder, you're buying stock with work. 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.

Cofounder 200

Cofounder Washington Salary Advertising 200

Berkonomics

OCTOBER 12, 2017

Cohen sets up an example where a senior position job candidate is stuck on a salary twice as high as the CEO is willing to pay, leading to a standoff between the two. Email readers, continue here…] One of the items on Cohen’s list of twenty-five was stock options. See insight 28.).

Employee 97

Employee Stock Options Dilution Salary 97

Austin Startup

NOVEMBER 29, 2017

Namely, windfall revenue from oil means that the Texas taxman does not collect personal or corporate income taxes (on the state level). For the time being, you’ll spend 40–50% less on renting a home or office and 20–30% less on employee salaries, while not giving up that much in terms of the startup ecosystem.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

Both Sides of the Table

SEPTEMBER 29, 2009

Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. The professor plotted data and showed us statistically that most people buy stocks when they are booming (e.g. VC’s fund their salaries and operations through management fees, which typically equal 2% per year.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263