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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similarly, when Flexible VC structures are based off of the founder’s own compensation (often via salary or dividends), investors are specifically tying their returns to the financial success of the founder. Founder Earnings” (Founder Salaries + Dividends + Retained Earnings). Profits, Founder Salaries, and/or Dividends Declared.

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8 Key Ingredients to a Profitable Consulting Business

Startup Professionals Musings

Yet, according to statistics from the Small Business Association (SBA), over half of new businesses offer something else - personal professional services, including consulting, business coaching, and advisory services. Maximize repeat business with existing clients. Set pricing to assure both revenue and profit.

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8 Entrepreneur Mistakes That Turn Off Real Investors

Startup Professionals Musings

Undefined business model or very low gross margins. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. All internal teams need to have relevant skills and experience. Investors pass if they find conflicted team members.

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8 Funding Proposal Red Flags Every Startup Can Avoid

Startup Professionals Musings

Undefined business model or very low gross margins. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. All internal teams need to have relevant skills and experience. Investors pass if they find conflicted team members.

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5 Steps To Get You From Your First Idea To A Business

Startup Professionals Musings

in Physics who talks passionately about starting a business producing nuclear powered batteries. I have tried to convince him the general idea alone does not make a business. His challenge is to focus on one market, with a specific design, cost, and price. Take your time in moving from your idea to a business.

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6 Keys to Attracting Customers Based On Social Needs

Startup Professionals Musings

For example, my dictate that entrepreneurs need to find a “ painful ” problem to solve (such as high cost, low productivity) to attract customers, doesn’t really account for many successful startup businesses today, including top social media platforms, dating sites, and new fashions. All of these tend to override cost and usability.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

.   You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   First , dividends. Let’s start at the end.