Startup Professionals Musings

JUNE 11, 2014

The sales professional. A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. These people also have the credibility to attract investors.

Technical Cofounder 245

Technical Cofounder Cofounder Advisory Board Startup 245

Both Sides of the Table

AUGUST 28, 2009

Our sales forecasts were revised downward – many times. We do hand out stock options. Our customers were generally happy but they were pushing us hard for promised features. Our business development discussions took longer than planned. Reporters were no longer interested in talking about B2B eCommerce.

PR 331

PR Software Review Ireland Germany 331

Both Sides of the Table

FEBRUARY 27, 2019

The law firm has done its job of preparing the stock option requests, board meeting minutes, 409a valuations. This can include: Fund raising, product development choices, sales, marketing effectiveness, competition, business development, M&A … whatever. We travel by airplane to sit around considering 0.02% stock grants?

Stock Options 226

Stock Options Metrics Stock Valuation 226

Both Sides of the Table

AUGUST 14, 2017

The administrative work we actually do at board meetings?

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

The Next Web

JUNE 15, 2012

After all, cash may be in short supply, but there’s a virtually endless amount of work to be done, from coding and web development, to PR, sales, general operations, or sage advice from an industry veteran. Many young tech startups reserve 15%-20% for employee stock options. It’s a logical solution. Plan upfront.

Equity 116

Equity Stock Options Vesting Stock 116

Startup Professionals Musings

OCTOBER 17, 2013

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 “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Stock Options 224

Stock Options Stock Advisory Board Startup 224

Startup Professionals Musings

SEPTEMBER 22, 2012

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 Options 230

Stock Options Stock Advisory Board Startup 230

Both Sides of the Table

APRIL 19, 2011

Mark: 10% warrant coverage is like stock options. Icing is the warrant for banks – stock they can buy in future but don’t have to buy so they make their $$ later in the future. o Everything is for sale but it’s the price that moves the timing. And he said ok got it. So he got a 30 day stay for more watrrant coverage.

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

Up and Running

SEPTEMBER 10, 2014

I’m a mom, a full-time sales manager, and recruiter. Entrepreneurs need to find a way to get traction (sales) without funding. It’s because pitching is making a sale and all sales are made emotionally and followed up with logic. Wait, you didn’t want to be a sales person? Stock Option.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

YoungUpstarts

SEPTEMBER 27, 2017

While most folks know the basic benefits of receiving stock, many employees are taken off guard by the tax implications that follow. There are two types of stock options, Incentive Stock Options (ISO) and Non-Qualified Stock Options (NQSO). Incentive Stock Option (ISO).

Stock Options 124

Stock Options Stock Capital Gains Vesting 124

Startup Professionals Musings

FEBRUARY 18, 2018

The sales professional. A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. These people also have the credibility to attract investors.

Technical Cofounder 144

Technical Cofounder Cofounder Advisory Board Startup 144

A Smart Bear: Startups and Marketing for Geeks

SEPTEMBER 29, 2015

On his startup’s sale to a larger company, he then laments that the “youthful energy that created so much value was siphoned off.” The other fallacy of the article is that his sale was a failure because the founder didn’t like being an employee at a larger company.

Acquisition 120

Acquisition Technical Review Stock Options Employee 120

Startup Professionals Musings

SEPTEMBER 13, 2015

The sales professional. A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. These people also have the credibility to attract investors.

Technical Cofounder 120

Technical Cofounder Cofounder Advisory Board Stock Options 120

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

Steve Blank

MARCH 16, 2016

After awhile, you ought to be able to go to the whiteboard and diagram the acquisition decision process much like a sales process. Do you wait 7 years until you’ve built enough revenue for a billion-dollar sale? Typically, a VC can force a sale, or even block one. You’re going to build one for them. Timing is everything.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

Startup Professionals Musings

MARCH 29, 2015

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 120

Stock Options Stock Advisory Board Startup 120

Both Sides of the Table

MAY 2, 2015

It freed up Ophir to grow out our sales organization, to work more closely with agencies, to innovate on product and to raise capital. The last thing you want the CEO (or heads of sales, marketing, product) doing is sinking 3 days every month into preparing board packs. Here’s the dilemma. You created the damn product!

Operations 150

Operations Metrics Early Stage Non-Compete 150

Up and Running

DECEMBER 16, 2021

Some reasons why include needing a more detailed picture of your company’s value, submitting taxes, outlining employee stock option plans, or presenting to investors or creditors. The following formulas are used to calculate the various aspects of the business valuation: Sales Multiples. Rules of thumb in business valuation.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

YoungUpstarts

AUGUST 17, 2011

Schools can’t give stock options, but they can give praise and non-economic rewards to those who uncover a new idea that works. As CEO, he grew it to more than 1,000 stores worldwide with annual sales topping $5 billion. Know when it’s time to pull the plug.

Cofounder 222

Cofounder Programming Leadership Ohio 222

BeyondVC

SEPTEMBER 14, 2004

Sales Review -Detailed sales pipeline review by region -Key wins/losses – detail on the losses and to whom. Professional Services (usually incorporated in context of sales discussion for smaller companies) -Status of existing customer implementations and satisfaction. This is where the heavy lifting happens.

Balance Sheet 99

Balance Sheet Technical Review Framework Stock Options 99

The Next Web

AUGUST 12, 2013

A marketing/sales machine. The next person (most companies forget) is an experienced sales/marketing founder. Also think about your first employees, it’s normal to let employees participate in the companies financial success by giving away virtual stock options (I will talk about that more next in the next part of this series).

Cofounder 119

Cofounder CTO Hire Startup Europe 119

Both Sides of the Table

FEBRUARY 23, 2015

So it could be that a sale would yield you seven figures and you could move on to your next role but the CEO wants to “go big or go home” and sometimes go home is the outcome. In many cases a company could or should be sold early and this can reap great rewards for the executive team and early investors.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

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. The most obvious way to explain this is with sales people. COGS” represents the amount that each sale costs you. Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Up and Running

DECEMBER 1, 2015

If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Make sure you understand all of your options before making any decisions. When business owners decide to go down the route of equity compensation, there are two primary options to choose between.

Equity 60

Equity Employee Stock Options Vesting 60

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

Both Sides of the Table

MARCH 21, 2010

A “warrant&# is a right, but not an obligation for a company to buy stock in your company at a future date and at a pre-agreed price. Think of it as similar to an employee stock option. While I’m a huge believer that sales bonuses should always be uncapped, I think capping PBW’s is a good idea.

Warrant 298

Warrant Dilution Startup Stock Options 298

BeyondVC

SEPTEMBER 14, 2004

At the end of the board meeting, I typically like to have a board-only session where the members can not only make the requisite board approvals for stock option grants and the minutes but also feel free to discuss any pertinent or sensitive topic like executive compensation, budget planning, financing/exit strategy, or concerns about personnel.

Balance Sheet 78

Balance Sheet Technical Review Framework Stock Options 78

Up and Running

JANUARY 4, 2017

This could look like changing the amount of ownership you’re willing to give to your investors, or establishing a way to deliver a faster return on their investment by increasing production, upping your products price point, or investing in a better sales team. Your flexibility might cause a hesitant investor to excitedly jump on board.

Small Business 122

Small Business Social Media Stock Options Employee 122

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

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 Stock Options Advisory Board Stock 234

Startup Professionals Musings

DECEMBER 8, 2019

Most public shells ready for sale are not listed on a national securities exchange, but are instead traded in a less glamorous setting, such as the OTC Bulletin Board. These looming constraints can turn your startup dream into a nightmare, all to increase funding. Reverse mergers may not get your startup on the Nasdaq.

Merger 303

Merger OTC IPO Due Diligence 303

Startup Professionals Musings

MAY 8, 2022

Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Later you need specialists and managers. The founder succession dilemma.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Berkonomics

OCTOBER 26, 2010

Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service. Inside board members, CEO and any other paid employees are not paid for board service in either stock options or cash. Email readers continue here.]

Stock Options 66

Stock Options Early Stage Stock Vesting 66

YoungUpstarts

JULY 17, 2020

If possible, offering stock options in lieu of raises or to counteract pay cuts is another way to build security. As the president of BabyScripts, Juan-Pablo has focused his efforts on business development, sales and fundraising. Of course, you want to make sure that your employees are also feeling financially secure.

Startup 287

Startup Wisconsin Stock Options Dividend 287

Startup Professionals Musings

SEPTEMBER 14, 2022

Most public shells ready for sale are not listed on a national securities exchange, but are instead traded in a less glamorous setting, such as the OTC Bulletin Board. These looming constraints can turn your startup dream into a nightmare, all to increase funding. Reverse mergers may not get your startup on the Nasdaq.

Merger 261

Merger OTC IPO Due Diligence 261

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

DECEMBER 14, 2014

Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Later you need specialists and managers. The Founder succession dilemma.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268