Startup Professionals Musings

AUGUST 8, 2022

Here is my summary of the ten top creativity mistakes we both still see too often: Criticize any new idea or employee suggestion. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company.

Stock Options 277

Stock Options Incubator Framework Stock 277

Startup Professionals Musings

NOVEMBER 6, 2019

Here is my summary of the ten top creativity mistakes we both still see too often: Criticize any new idea or employee suggestion. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company.

Stock Options 236

Stock Options Incubator Framework Stock 236

Startup Professionals Musings

APRIL 8, 2015

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. One more key employee or one more investor will probably not turn the situation around. 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

APRIL 10, 2016

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. One more key employee or one more investor will probably not turn the situation around. Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Steve Blank

MARCH 16, 2016

For the first few years, your VCs want you to keep your head down, build the product, find product/market fit and ship to get to some inflection point (revenue, users, etc.). For example, in your industry do companies build value the old fashion way by generating revenue? If so, how is the revenue measured? FDA approvals?

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

Startup Professionals Musings

NOVEMBER 19, 2017

Here is my summary of the ten top creativity mistakes we both still see too often: Criticize any new idea or employee suggestion. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company.

Stock Options 141

Stock Options Incubator Framework Stock 141

crowdSPRING Blog

OCTOBER 10, 2014

Stock option questions startup employees should ask | Business Insider – crowdspring.co/1n8lUje. 5 Things I Learned Analyzing Buffer’s Revenue Dashboard | Ivan Kreimer – crowdspring.co/1xfTwMG. The One, Life-Saving Change Workplaces Can Make For Their Employees – crowdspring.co/1r4ba0i.

Social Media 97

Social Media Small Business Design Media 97

Both Sides of the Table

APRIL 22, 2010

They make terrible employees. Why do job hoppers make such bad employees at startups? -. Your revenues are “just around the corner.&# Your angel investors are nervous because the VCs aren’t moving that fast to fund your next round. And he has already vested 75% of his stock options at your company.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

Up and Running

DECEMBER 16, 2021

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). their net commission revenue. It has $600,000 in EBITDA.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

The Next Web

AUGUST 12, 2013

Define how you want to motivate your employees every day to produce high-quality and industry-leading results. Starting a global tech business with international, well-educated and highly-skilled people, generating millions of revenue per month, is incredibly hard. Prepare to fail, 95% do. That’s a tough one, but it’s so important.

Cofounder 119

Cofounder CTO Hire Startup Europe 119

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Both Sides of the Table

NOVEMBER 4, 2009

Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. When I was CEO of my first company (where I admittedly F’d up everything before I figured it all out) we initially calculated for people how much there options were going to be worth some day.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Both Sides of the Table

MARCH 21, 2010

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

Warrant 298

Warrant Dilution Startup Stock Options 298

Ben's Blog

APRIL 28, 2010

Andy Grove was Intel’s third employee (after the two cofounders Robert Noyce and Gordon E. This knowledge becomes the foundation on top of which a gigantic knowledge pyramid gets built which includes: Knowledge of every employee who gets hired and why. were the driving force behind Intel and IBM, respectively. Thomas Watson, Sr.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Berkonomics

DECEMBER 5, 2024

These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding,) and approve any additions to the capital stock authorized to be issued.

Stock Options 117

Stock Options Balance Sheet Stock Angel Groups 117

Both Sides of the Table

SEPTEMBER 28, 2013

So the tech team departed en masse to find the next great stock option scheme to make their big bucks. An employee walks up to me and says, “Mark, I’m thinking about buying a house. Sure, our revenue is growing, but is that enough to raise an internal round? But we departed on good terms. Runway of cash.

Startup 417

Startup Dilution San Diego Stock Options 417

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

How many employees would a medium-sized business have in your definition? Jason: If I’m managing my whole business with this tool, I don’t have 100 employees. you can’t have one employee because meetings are just too easy and you don’t really have them formally. You can’t have 5,000 employees.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

Berkonomics

SEPTEMBER 13, 2010

The number of employees grows. Once created, it is logical to follow the standard practice in the creation of two standing committees composed of outside board members (not employees or executives) – the compensation committee and the audit committee. Bank loans with restrictive covenants are taken on.

Covenant 59

Covenant Software Review Stock Options Vesting 59

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? Stock Option plans. How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? How will the lead determine a value? EBITDA multiple?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Startup Professionals Musings

DECEMBER 8, 2019

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? A survey from a while back sets the burden at up to $2.5M

Merger 303

Merger OTC IPO Due Diligence 303

Berkonomics

APRIL 4, 2024

The number of employees grows. And then company grows… Once the company hits high growth or larger size, it is logical to follow the standard practice in the creation of two standing committees composed of outside board members (not employees or executives) – the compensation committee and the audit committee.

Covenant 48

Covenant Software Review Stock Options Vesting 48

YoungUpstarts

FEBRUARY 1, 2020

These are: Revenue Recognition issues. Share-based Compensation. Accounting for Income Taxes. Revenue Recognition. This accounting principle determines the exact conditions in which revenue is recognised and accounted. Stock Option Expensing. . Accounting for Income Tax. Share-Based Compensation.

CPA 165

CPA Stock Options Valuation Stock 165

Startup Professionals Musings

SEPTEMBER 14, 2022

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? A classic survey from a while back sets the burden at up to $2.5M

Merger 261

Merger OTC IPO Due Diligence 261

Women Entrepreneurs Can

FEBRUARY 8, 2023

Depending on the type of property you purchase, you may also benefit from tax deductions or additional revenue streams through tenant renting fees. Invest in Your Employees Investing in your employees is just as important as investing in technology or physical assets.

Artificial Inteligence 52

Artificial Inteligence Guerilla Technical Review Stock Options 52

Hearpreneur

DECEMBER 31, 2017

I have spent a great deal of time studying the fundamentals of stocks, option trades, goal-setting, and public speaking. But also I am excited to bring out my book and work with small businesses to focus on engaging more succesfully with their employees. All my studying and hard work has resulted in a breakthrough.

Entrepreneur 86

Entrepreneur Stock Options Programming Washington 86

Berkonomics

DECEMBER 7, 2023

What if employee candidates ask for the moon? and stock options as a perk? Email readers, continue here…] One of the items on Cohen’s list of twenty-five was stock options. The post Stock options or more cash? Then again, there are those seductive unicorn opportunities.

Stock Options 62

Stock Options Stock Salary Dilution 62

Startup Professionals Musings

MAY 3, 2014

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? Experts estimate the burden of public companies at up to $1M a year.

Merger 246

Merger OTC IPO Stock 246

Startup Professionals Musings

JANUARY 16, 2011

He says that you should never consider a public offering unless you are confident that the company will deliver increasing profits and revenue after the offering, so that the public buyer can anticipate a gain. Of course, you’re going to have to perform well to make that stock useful in the acquisitions process.

IPO 223

IPO Social Media Media Exit Strategy 223

YoungUpstarts

FEBRUARY 11, 2020

Whenever I start a new job or join a board, I spend time understanding what is really important to the company, especially around strategy, revenue and capital allocation. Early in my climb I was hyper-focused on title and pay, realizing later that good health was like a stock option that pays off later.

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

Austin Startup

NOVEMBER 29, 2017

Namely, windfall revenue from oil means that the Texas taxman does not collect personal or corporate income taxes (on the state level). For the time being, you’ll spend 40–50% less on renting a home or office and 20–30% less on employee salaries, while not giving up that much in terms of the startup ecosystem.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

Startup Professionals Musings

JANUARY 13, 2018

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? A PwC survey averages the burden of public companies at $1.5M

Merger 198

Merger OTC IPO Due Diligence 198

The Next Web

SEPTEMBER 16, 2012

Do you get along with the employees? The best general rule of thumb is that if your role is to generate revenue for the company, then you are in Bucket X. If your role is not actively creating revenue, then you are in Bucket Y. What about company stock options? Long term goals? What will you be doing Day 1?

Stock Options 141

Stock Options Startup Stock Salary 141

Berkonomics

OCTOBER 12, 2017

They include an expense account, company car, profit sharing, 401k contributions, medical coverage for dependents, free life insurance, educational payments, extra vacation, relocation expenses, paid trips to industry association meetings, or a small override on revenue from new products developed under the candidate’s watch.

Employee 97

Employee Stock Options Dilution Salary 97

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. These include: ·       Vesting of Founder Stock. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. Don’t be afraid to pivot The collapse of SVB spurred us to do a deep evaluation of how we’re generating revenue and value for customers.

Early Stage 146

Early Stage Los Angeles Silicon Valley Cofounder 146

Scott Edward Walker

NOVEMBER 2, 2011

If you hire any employees, make sure you don’t misclassify them as an independent contractor or fail to pay them at least the minimum wage (see post here ). Don’t issue stock options unless a proper option plan is in place and a valuation has been done in compliance with Section 409A of the Internal Revenue Code (see post here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Most firmsalso have a handful of junior employees called something likeassociates or analysts. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76