Startup Professionals Musings
APRIL 12, 2019
Image via Flickr by Phil Gyford Starting a new venture still costs real money, even though the entry price has come down dramatically in last few decades. For example, I come from a software background, and back in the early PC days, it could easily cost half a million dollars for a team of professionals to produce a commercial product.
Startup Professionals Musings
AUGUST 9, 2020
Giving a co-founder a salary won’t get you the “fire in the belly” you want. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. You need to find the skills or experience you don’t have in business, technology, or money.
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SoCal CTO
SEPTEMBER 27, 2011
Suppose further that he's going to cost $60k a year in salary and overhead, x 1.5 = $90k total. You can also look at some data around this in Startup CTO Salary and Equity Data at some specific numbers at different stages Where I Come Out Again, like Fred Wilson says, early employee equity is more art than science.
Startup Professionals Musings
AUGUST 19, 2020
Things will cost more than you expect. 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. Cash flow out equates to burn rate, and the runway depends on your reserves.
Startup Professionals Musings
MARCH 6, 2021
I’m sure all you accountants will agree that fixing the mistakes listed here does not require rocket science, but I’ve seen them so often that to be forewarned is to be forearmed: Failing to factor in fixed costs when pricing. Always use a break-even analysis to measure what volume and price are required to offset total costs.
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. ” If you’re not profitable you’re purely a cost center to them. Cost of Goods Sold (COGS) =. Operating Costs.
Up and Running
SEPTEMBER 11, 2020
In fact, some of the biggest company expenses start off as cost-cutting measures. Cutting costs vs. cutting corners. It can also be a result of second-rate cost-reduction tactics. Are you cutting costs or merely cutting corners? Are you cutting costs or merely cutting corners? Have you been making the same mistake?
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