Startup Professionals Musings

AUGUST 8, 2022

An even better alternative could be stock options, linked to the long-term success of the company. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. You need different rewards for a team running an innovation project, such as reaching agreed milestones.

Stock Options 277

Stock Options Incubator Framework Stock 277

Startup Professionals Musings

JULY 26, 2020

If you want to give stock options, or have already been giving them, the employees will love the liquidity of their options, and the thought of selling shares for a profit. Most startup founders voluntarily exit or are pushed out, and the fun is gone. Analysts want escalating profits.

Cost 319

Cost IPO Exit Strategy Initial Public Offering 319

Startup Professionals Musings

JULY 1, 2022

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

FEBRUARY 8, 2020

Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Recruit the best team members and provide incentives. Trying to save money by recruiting family members, or hiring only interns, is a bad risk.

Management 322

Management Entrepreneur Forecast Stock Options 322

Startup Professionals Musings

FEBRUARY 9, 2020

The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. I’m not suggesting that you need all six of these as cofounders initially, but I always recommend a minimum of two founders with different perspectives.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

JULY 9, 2014

Founders stock, and stock options, will be worth nothing for the first several years, if not forever. Who gets stock options, and how many? Running or working for a startup is more of a lifestyle than a career choice. Be prepared for chaos, long hours, and small paychecks in the short-term.

Technical Review 250

Technical Review Stock Options Due Diligence Silicon Valley 250

Startup Professionals Musings

NOVEMBER 6, 2019

An even better alternative could be stock options, linked to the long-term success of the company. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. You need different rewards for a team running an innovation project, such as reaching agreed milestones.

Stock Options 236

Stock Options Incubator Framework Stock 236

Startup Professionals Musings

SEPTEMBER 25, 2019

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Startup Professionals Musings

OCTOBER 18, 2015

Founders stock, and stock options, will be worth nothing for the first several years, if not forever. Who gets stock options, and how many? Running or working for a startup is more of a lifestyle than a career choice. Be prepared for chaos, long hours, and small paychecks in the short-term.

Technical Review 120

Technical Review Entrepreneur Stock Options Due Diligence 120

Startup Professionals Musings

AUGUST 27, 2014

Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Recruit the best team members and provide incentives. Trying to save money by recruiting family members, or hiring only interns, is a bad risk.

Startup 283

Startup Forecast Stock Options Technical Review 283

Startup Professionals Musings

DECEMBER 10, 2022

Another example is Facebook , maintaining motivation with food, stock options, collaborative office space, an on-site laundry, and a competitive atmosphere that fosters personal growth and learning with great benefits.

Stock Options 362

Stock Options Salary Leadership Stock 362

Startup Professionals Musings

FEBRUARY 17, 2018

Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Recruit the best team members and provide incentives. Trying to save money by recruiting family members, or hiring only interns, is a bad risk.

Forecast 161

Forecast Stock Options Technical Review Metrics 161

Startup Professionals Musings

FEBRUARY 18, 2018

The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. I’m not suggesting that you need all six of these as cofounders initially, but I always recommend a minimum of two founders with different perspectives.

Technical Cofounder 144

Technical Cofounder Cofounder Advisory Board Startup 144

Startup Professionals Musings

NOVEMBER 19, 2017

An even better alternative could be stock options, linked to the long-term success of the company. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. You need different rewards for a team running an innovation project, such as reaching agreed milestones.

Stock Options 141

Stock Options Incubator Framework Stock 141

Startup Professionals Musings

JUNE 11, 2014

The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. I’m not suggesting that you need all six of these as cofounders initially, but I always recommend a minimum of two founders with different perspectives.

Technical Cofounder 245

Technical Cofounder Cofounder Advisory Board Startup 245

Startup Professionals Musings

AUGUST 29, 2022

Their reward is more free time for leisure, or more time for bonus objectives and stock options. People who get paid by results have every incentive to think up smarter ways of getting work done. It does not mean the culture is soft or lacks discipline. Peer pressure keeps productivity standards high.

Cost 313

Cost Stock Options Cloud Differentiation 313

Startup Professionals Musings

SEPTEMBER 14, 2022

These include the ability to offer meaningful stock options to employees, the use of liquid shares to purchase other companies, and the credibility and public access to information you need to attract key customers and suppliers.

Merger 261

Merger OTC IPO Due Diligence 261

Startup Professionals Musings

APRIL 10, 2016

Calculate employee stock option values and vesting times, as well as salary. Since nine out of ten startups fail completely, serious investors look for a 10X return on their investment within five years. Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

MAY 8, 2022

Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. Very early, you need generalists who can cover multiple areas, but you can’t pay for experience. Later you need specialists and managers. Later use LinkedIn and other job sources for professionals. The founder succession dilemma.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

OCTOBER 21, 2017

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Stock 140

Stock Stock Options Advisory Board Startup 140

Startup Professionals Musings

APRIL 8, 2015

Calculate employee stock option values and vesting times, as well as salary. Since nine out of ten startups fail completely, serious investors look for a 10X return on their investment within five years. Look for examples of similar companies and revenue multiples achieved from acquirers.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

SEPTEMBER 9, 2015

Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Recruit the best team members and provide incentives. Trying to save money by recruiting family members, or hiring only interns, is a bad risk.

Forecast 120

Forecast Startup Stock Options Technical Review 120

Startup Professionals Musings

SEPTEMBER 13, 2015

The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. I’m not suggesting that you need all six of these as cofounders initially, but I always recommend a minimum of two founders with different perspectives.

Technical Cofounder 120

Technical Cofounder Cofounder Advisory Board Stock Options 120

Startup Professionals Musings

MARCH 11, 2020

Another example is Facebook , maintaining motivation with food, stock options, collaborative office space, an on-site laundry, and a competitive atmosphere that fosters personal growth and learning with great benefits.

Product 322

Product Stock Options Salary Leadership 322

Startup Professionals Musings

DECEMBER 8, 2019

These include the ability to offer meaningful stock options to employees, the use of liquid shares to purchase other companies, and the credibility and public access to information you need to attract key customers and suppliers.

Merger 303

Merger OTC IPO Due Diligence 303

Startup Professionals Musings

FEBRUARY 7, 2020

Founders stock and stock options are worth nothing for the first few years. If both were bitten by the entrepreneurial bug, they might actually switch roles every few years. They rationalize the chaos, long hours, and small paychecks from a startup in the short-term. Test your entrepreneur instincts through crowdfunding.

Silicon Valley 315

Silicon Valley Entrepreneur Stock Options Flash 315

Startup Professionals Musings

NOVEMBER 25, 2019

Their reward is more free time for leisure, or more time for bonus objectives and stock options. People who get paid by results have every incentive to think up smarter ways of getting work done. It does not mean the culture is soft or lacks discipline. Peer pressure keeps productivity standards high.

Stock Options 319

Stock Options Cloud Differentiation Social Media 319

Startup Professionals Musings

AUGUST 10, 2019

Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. Very early, you need generalists who can cover multiple areas, but you can’t pay for experience. Later you need specialists and managers. Later use LinkedIn and other job sources for professionals. The founder succession dilemma.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Startup Professionals Musings

JUNE 20, 2010

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “bonus,” rather than a key part of your compensation for joining a startup. Advisory Board Member, 1% Senior Engineer,3 -.7%

Stock 144

Stock Stock Options Advisory Board Startup 144

Startup Professionals Musings

MARCH 2, 2018

Make them owners with stock options and actions. Some are super-capable and deserve a lot of decision making flexibility, while others are new or less experienced, so their box must be a bit smaller. Ownership can be financial or psychological.

Employee 180

Employee Stock Options Leadership Stock 180

Startup Professionals Musings

JULY 24, 2011

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “bonus,” rather than a key part of your compensation for joining a startup. Advisory Board Member, 1% Senior Engineer,3 -.7%

Equity 234

Equity Advisory Board Stock Options Stock 234

Startup Professionals Musings

JANUARY 13, 2018

These include the ability to offer meaningful stock options to employees, the use of liquid shares to purchase other companies, and the credibility and public access to information you need to attract key customers and suppliers.

Merger 198

Merger OTC IPO Due Diligence 198

Startup Professionals Musings

NOVEMBER 30, 2014

Yet you should offer a reasonable monthly fee and/or some stock options to show you are serious about the position. Formalize the compensation. Most advisory board members sign up because the want to help you, not because of the compensation. If you want out-of-town members on your board, you reimburse the travel expenses.

Advisory Board 276

Advisory Board Startup Stock Options Stock 276

Startup Professionals Musings

AUGUST 26, 2018

If you want to give stock options, or have already been giving them, the employees will love the liquidity of their options, and the thought of selling shares for a profit. Most startup founders voluntarily exit or are pushed out, and the fun is gone. Analysts want escalating profits.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

Startup Professionals Musings

JANUARY 3, 2018

Their reward is more free time for leisure, or more time for bonus objectives and stock options. People who get paid by results have every incentive to think up smarter ways of getting work done. It does not mean the culture is soft or lacks discipline. Peer pressure keeps productivity standards high.

Startup 154

Startup Stock Options Cloud Differentiation 154

Startup Professionals Musings

MAY 3, 2014

These include the ability to offer meaningful stock options to employees, the use of liquid shares to purchase other companies, and the credibility and public access to information you need to attract key customers and suppliers.

Merger 246

Merger OTC IPO Stock 246

Startup Professionals Musings

DECEMBER 14, 2014

Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. Very early, you need generalists who can cover multiple areas, but you can’t pay for experience. Later you need specialists and managers. Later use LinkedIn and other job sources for professionals. The Founder succession dilemma.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268