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. Waiting until you have something to sell before bringing on a sales and operations staff. Social media is not rocket science.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

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. Sales data needs to be correlated to advertising campaigns, price changes, seasonal forces, competitive actions, and other costs of sales.

Metrics 252

Metrics Technical Review Retention Acquisition 252

Startup Professionals Musings

JULY 1, 2022

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Offers near the high end of a range will likely come with a lower cash salary, maybe even 50% of the going rate. Your compensation is the total package of stock plus salary plus benefits.

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

DECEMBER 4, 2022

Most great founders lived on Ramen noodles, without taking a salary, for longer than they like to remember. Arbitrary rewards, like salary bonuses or vacation perks, seem to just get in the way of achieving really great results. For them, money is a positive indicator of success, but not an end in itself.

Entrepreneur 304

Entrepreneur Salary Partner Global 304

Startup Professionals Musings

MARCH 28, 2022

Yet even a non-profit has to make a profit on everything it sells, in order to cover operating expenses (salaries, offices, equipment, research, travel, etc.), Even then, the business and leadership efforts to solicit and manage donations cost real money, and may be more difficult than the marketing and sales jobs of most startups.

Distribution 250

Distribution Africa United States Salary 250

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. In business, when you lose money on every sale, it’s hard to make it up in volume and be profitable. Always use a break-even analysis to measure what volume and price are required to offset total costs. Marty Zwilling.

Technical Review 251

Technical Review Entrepreneur Salary Finance 251

Startup Professionals Musings

DECEMBER 16, 2022

A recent survey shows that most value real flexibility over salary and benefits. For example, Patagonia donates one percent of their sales to environmental charities, and has a high sense of community. Rewards are out of balance with effort and results. Organization acts without fairness and respect.

Employee 301

Employee Community Salary Demand 301

Startup Professionals Musings

JUNE 9, 2021

Your self-motivation is more effective for you than any arbitrary rewards and even salary increases. Every day is different, from dealing with creative elements, to financial challenges, marketing and sales, and customers of every type. You get to do the interesting things, for a change. Your office would be where you want it.

Salary 422

Salary Global Cost Naming 422

Startup Professionals Musings

FEBRUARY 17, 2021

Social media facilitates marketing and sales. 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. Servers needed expensive IT consultants for setup and maintenance, and required excessive power and cooling.

Cost 405

Cost Entrepreneur Burn Rate Social Media 405

Startup Professionals Musings

MARCH 7, 2020

Most great founders lived on Ramen noodles, without taking a salary, for longer than they like to remember. Arbitrary rewards, like salary bonuses or vacation perks, seem to just get in the way of achieving really great results. For them, money is a positive indicator of success, but not an end in itself.

Salary 317

Salary Partner Entrepreneur Global 317

Startup Professionals Musings

NOVEMBER 14, 2011

Your self-motivation is more effective for you than any arbitrary rewards and even salary increases. Every day is different, from dealing with creative elements, to financial challenges, marketing and sales, and customers of every type. You get to do the interesting things, for a change. Your office is where you want it.

Software Review 273

Software Review Salary Global Cost 273

Startup Professionals Musings

JUNE 27, 2022

Sometimes it’s obvious that closing a deal requires some tough negotiation or sales calls at the top, but these are not your forte, so you can never find the time or energy to get them done. You know what is required, but you continue to procrastinate. Maybe it’s time to find an advisor, or a board member with the right connections.

Burn Rate 329

Burn Rate Differentiation Salary Entrepreneur 329

Startup Professionals Musings

SEPTEMBER 25, 2019

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Offers near the high end of a range will likely come with a lower cash salary, maybe even 50% of the going rate. Your compensation is the total package of stock plus salary plus benefits.

Equity 237

Equity Stock Options Advisory Board Stock 237

Startup Professionals Musings

SEPTEMBER 21, 2010

Your self-motivation is more effective for you than any arbitrary rewards and even salary increases. Every day is different, from dealing with creative elements, to financial challenges, marketing and sales, and customers of every type. You get to do the interesting things, for a change. Your office is where you want it.

Software Review 226

Software Review Salary Global Entrepreneur 226

Startup Professionals Musings

JUNE 26, 2019

Yet even a non-profit has to make a profit on everything it sells, in order to cover operating expenses (salaries, offices, equipment, research, travel, etc.), Even then, the business and leadership efforts to solicit and manage donations cost real money, and may be more difficult than the marketing and sales jobs of most startups.

Distribution 187

Distribution Africa United States Salary 187

Startup Professionals Musings

MARCH 13, 2020

If you insist on projecting $100 million in sales the first year, smart investors will likely run for the nearest exit. Unattractive uses, from an investor standpoint, would include research and development, buying a building, or large salaries. Assume margins and prices that are realistic in your target market.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

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. Sales is simply defined as income from customer purchases of goods and services, minus the cost associated with things like returned or undeliverable merchandise.

Metrics 266

Metrics Retention Acquisition Salary 266

Startup Professionals Musings

OCTOBER 21, 2017

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Offers near the high end of a range will likely come with a lower cash salary, maybe even 50% of the going rate. Your compensation is the total package of stock plus salary plus benefits.

Stock 140

Stock Stock Options Advisory Board Startup 140

Startup Professionals Musings

JUNE 25, 2017

Yet even a non-profit has to make a profit on everything it sells, in order to cover operating expenses (salaries, offices, equipment, research, travel, etc.), Even then, the business and leadership efforts to solicit and manage donations cost real money, and may be more difficult than the marketing and sales jobs of most startups.

Distribution 140

Distribution Africa United States Salary 140

Startup Professionals Musings

SEPTEMBER 21, 2019

Sometimes it’s obvious that closing a deal requires some tough negotiation or sales calls at the top, but these are not your forte, so you can never find the time or energy to get them done. You know what is required, but you continue to procrastinate. Maybe it’s time to find an advisor, or a board member with the right connections.

Burn Rate 249

Burn Rate Entrepreneur Differentiation Salary 249

Startup Professionals Musings

FEBRUARY 2, 2013

Yet even a non-profit has to make a profit on everything it sells, in order to cover operating expenses (salaries, offices, equipment, research, travel, etc.), Even then, the business and leadership efforts to solicit and manage donations cost real money, and may be more difficult than the marketing and sales jobs of most startups.

Revenue 262

Revenue Startup Africa United States 262

Startup Professionals Musings

APRIL 5, 2014

Yet even a non-profit has to make a profit on everything it sells, in order to cover operating expenses (salaries, offices, equipment, research, travel, etc.), Even then, the business and leadership efforts to solicit and manage donations cost real money, and may be more difficult than the marketing and sales jobs of most startups.

Africa 214

Africa United States Salary LLC 214

Startup Professionals Musings

OCTOBER 17, 2013

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Offers near the high end of a range will come with a lower cash salary, maybe even 50% of the going rate. Your compensation is the total package of stock plus salary plus benefits.

Stock Options 224

Stock Options Stock Advisory Board Startup 224

Startup Professionals Musings

NOVEMBER 3, 2014

Most startup founders already do this, rather than take a salary, to improve their offering. As soon as you bring in investors, they force you to plan for an exit (merger or sale) in three to five years. Don''t justify over-spending initially with "long-run" thinking. If you do, there probably won''t ever be a long run!

Bootstrapping 278

Bootstrapping Startup Merger Salary 278

Startup Professionals Musings

SEPTEMBER 22, 2012

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Offers near the high end of a range will come with a lower cash salary, maybe even 50% of the going rate. Your compensation is the total package of stock plus salary plus benefits.

Stock Options 230

Stock Options Stock Advisory Board Startup 230

Startup Professionals Musings

DECEMBER 18, 2011

Yet even a non-profit has to make a profit on everything it sells, in order to cover operating expenses (salaries, offices, equipment, research, travel, etc.), Even then, the business and leadership efforts to solicit and manage donations cost real money, and may be more difficult than the marketing and sales jobs of most startups.

Africa 255

Africa United States Salary LLC 255

Startup Professionals Musings

JANUARY 8, 2013

Startups can rarely afford or even attract the young superstar C-level executives they covet – these people want big salaries, big staffs, and big budgets – who are also known to push founders out of the way. High-travel sales and buyer positions. Retail sales to Gen-X and Gen-Y. Interim executive.

Advisory Board 247

Advisory Board Angel Investor Startup Equity 247

Startup Professionals Musings

JULY 24, 2011

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Offers near the high end of a range will come with a lower cash salary, maybe even 50% of the going rate. Your compensation is the total package, stock plus salary. 7% Product Manager,2 -.3%

Equity 234

Equity Advisory Board Stock Options Stock 234

Startup Professionals Musings

JULY 18, 2016

Most great founders lived on Ramen noodles, without taking a salary, for longer than they like to remember. Arbitrary rewards, like salary bonuses or vacation perks, seem to just get in the way of achieving really great results. For them, money is a positive indicator of success, but not an end in itself.

Entrepreneur 120

Entrepreneur Salary Partner Global 120

Startup Professionals Musings

JULY 27, 2014

Social media facilitates marketing and sales. 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. Servers needed expensive IT consultants for setup and maintenance, and required excessive power and cooling.

Entrepreneur 260

Entrepreneur Burn Rate Social Media LLC 260

Startup Professionals Musings

NOVEMBER 20, 2011

Startups can rarely afford or even attract the young superstar C-level executives they covet – these people want big salaries, big staffs, and big budgets – who are also known to push founders out of the way. High-travel sales and buyer positions. Retail sales to Gen-X and Gen-Y. Interim Executive.

Advisory Board 268

Advisory Board Angel Investor Entrepreneur Equity 268

Startup Professionals Musings

AUGUST 26, 2018

Public ownerships usually lends prestige and credibility to your sales, marketing, and acquisition efforts, but it may work counter to your vision of saving the world. On the other hand, “competitive” salaries will likely go up, and health and retirement benefits will jump to a new level.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

Startup Professionals Musings

MARCH 29, 2015

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Offers near the high end of a range will likely come with a lower cash salary, maybe even 50% of the going rate. Your compensation is the total package of stock plus salary plus benefits.

Stock Options 120

Stock Options Stock Advisory Board Startup 120

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. During his ten-year tenure, Apple''s sales increased from $800 million to $8 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

NOVEMBER 26, 2012

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

APRIL 23, 2013

Most startup founders already do this, rather than take a salary, to improve their offering. As soon as you bring in investors, they force you to plan for an exit (merger or sale) in three to five years. Don''t justify over-spending initially with "long-run" thinking. If you do, there probably won''t ever be a long run!

Equity 241

Equity Bootstrapping Startup Merger 241

Startup Professionals Musings

OCTOBER 6, 2010

Yet even a non-profit has to make a profit on everything it sells, in order to cover operating expenses (salaries, offices, equipment, research, travel, etc.), Even then, the business and leadership efforts to solicit and manage donations cost real money, and may be more difficult than the marketing and sales jobs of most startups.

Startup 215

Startup Africa United States Salary 215