Invoicing tips to slash A/R delinquencies

The Startup Magazine

The majority of business owners said their biggest focus was growth. They often pursued growth at the expense of other issues. A five-year study found that 2% of all accounts receivable were permanently uncollectible. If the proportion of accounts receivable that is uncollectible rises from 2% to 4%, then profit margins can drop by 30% or more. Of course, the reality is a lot worse for a lot of businesses. This can create all kinds of cash flow problems.

Convertible Note Interest

The Startup Lawyer

The convertible note interest should also accrue until the note converts into equity or is paid out at the sale of the company. The purpose of interest in a convertible note is to appreciate the time value of money — not to pay the investor interest with his or her investment money. The principal invested via a convertible note should accrue interest, but the rate should be lower than a typical company non-convertible loan from an investor.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

What Courses Of Study Are Good For Would Be Entrepreneurs?

YoungUpstarts

The question of whether or not you need to get a degree in order to become an entrepreneur is highly debatable, however there is no doubt that there are a number of courses which you can take to improve your business knowledge and help you to run your company better. However, with the cost of tuition fees constantly on the rise and a lot of successful entrepreneurs being drop-outs, do you really need to go to school?

Why are the majority of angel investors focused on opportunities with large TAM?

Gust

Because of the economic realities of angel investing, not greed. The hard and unforgiving facts are that the majority of all angel-backed ventures fail completely, losing all the money of all the investors. Of the remaining investments, most will return either the same amount that was originally invested, or perhaps be a moderate success and return two or three times the investment.

10 Rules of Thumb for Startup Investment Valuation

Startup Professionals Musings

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number. This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)?

The Right Way To Do A Software ROI Analysis

Feld Thoughts

We are fortunate in that we’ve got a bunch of amazing sales execs in our portfolio, including several CEOs like Howard Diamond of MobileDay and Matthew Bellows of Yesware who have long histories selling and building sales organizations. After spending nearly 20 years selling startup software and services to big companies, I can safely say I’ve seen thousands of “Return on Investment” (ROI) slides. And we still failed the first two times we tried.

The Board Before the Board

This is going to be BIG.

Board members can provide useful feedback, help to focus the founding team, and provide a network of contacts. . Unfortunately, many companies don''t get financing--because they don''t get any of the above. Sometimes, the founders lack focus to the point where they don''t even get to the point of company formation. They get caught in a sea of too many problems, too many opportunities, without a good idea of what to do first to coalese their ideas into a single vision. .

Ten Components of Startup Valuation For Investors

Startup Professionals Musings

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, playing coy, or quoting an exorbitant number. This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points.

Why Rand should take some money off the table

A Smart Bear: Startups and Marketing for Geeks

SEOmoz founder and figurehead Rand Fishkin wrote a typically transparent, thoughtful blog post about his struggle of whether to raise a Series B. He’s in the best possible position — the company is profitable and growing and doesn’t “need&# the money, so with little dilution he could take $10m for safety, comfort, and scale. But in the end, in a spirit of directness and with the greatest respect, I say: Dear Rand, Take some money off the table.

Tom Terzis Shares the Common Mistakes People Make When Investing

The Startup Magazine

Given your lack of experience, the forthcoming market spikes and drops, which are unavoidable, will probably result in a substantial amount of stress and anxiety. This is completely normal, and the vast majority of new investors go through the same struggle. Especially as an entrepreneur with little extra time, you may need some investment advice. If they do so immediately and leave it aside for 10 years, they will accumulate a total of $12,968.71.

Are MBAs Necessary for Start-ups or VC?

Both Sides of the Table

This is part of my ongoing series called “ Start-up Lessons.&#. Almost all of the finalists were MBAs (Stanford x2, Wharton, Harvard x2, MIT, UCLA). Many of my best friends have MBAs. My family had the very first edition of the IBM XT computer with a 10 MB hard drive.

NPV 364

10 Rules of Thumb for Startup Investment Valuation

Gust

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number. This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)?

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. 2: As expected at least one person accused me of writing this post because I want to see lower valuations. I thought I’d post on one of the topics before hand. There is an inherent value that any company has.

Walking Away From Liquidity

Seeing Both Sides

At a (pre-blizzard) conference I attended today run by Gridley & Co, this theme was reinforced, with rosy predictions of an M&A boom. Two of my companies have just gone through this process. Does it appear that the major proof points are still ahead of the company?

Constructing Pricing Strategy For Subscription Products

ConversionXL

It’s also one of the most difficult Ps of marketing for folks to wrap their heads around. It can be one of the more technical aspects of marketing. First Thing’s First: How Do You Determine Value and Price? Patrick Campbell , CEO of Price Intelligently , put it well in a GrowthHackers AMA : Patrick Campbell: “You should not be afraid to talk to your customer about pricing. Sure, these phone sells cost time and money.