Startup Professionals Musings

MAY 23, 2013

One of the toughest decisions for a startup is how to price their product or service. The alternatives range from giving it away for free, to pricing based on costs, to charging what the market will bear (premium pricing). In this more traditional product pricing model, the price is set at two to five times the product cost.

Pricing 116

Pricing Product Customer Custom 116

Startup Professionals Musings

FEBRUARY 11, 2010

Modern investors love to first read a two-page summary of your business plan, formatted like a glossy marketing collateral sheet, with text well laid out in columns and sidebars, and a couple of relevant graphics. You may have already found several articles, web pages, or books about writing the perfect executive summary.

Summary 55

Summary Writing Competition Metrics 55

Startup Professionals Musings

DECEMBER 11, 2019

I was impressed with his summary of the top ten outsourcing mistakes made by entrepreneurs, followed by real guidance on how they can and should be avoided. Fixed price bidding is the only effective outsourcing model.” Getting a fixed price bid works for well-defined short-term projects, like blogging or programming.

Outsource Development 121

Outsource Development Outsource Entrepreneur Summary 121

Startup Professionals Musings

OCTOBER 30, 2022

Almost instantly, via the Internet or on their smartphone in the store, they can find the lowest price alternative or their favorite features, without waiting for push marketing or listening to your best sales person. What most companies don’t realize is that businesses don’t drive customer trends anymore, customers drive business trends.

Customer 146

Customer Custom Startup Course 146

Berkonomics

JULY 6, 2017

In 1994, (I know a long time ago), I invested over a million dollars into a company whose entrepreneurs had a vision that I bought into for many reasons, not the least of which was that I had industry experience and understood the need. Here’s where some intelligent market research might have saved the company and my investment.

Competition 266

Competition Research Summary Pricing 266

Startup Professionals Musings

APRIL 18, 2021

If there are financial anomalies, or someone on the team doesn’t know the current strategy, or is unhappy with you or the company, the investment will be jeopardized. Call a company meeting to communicate what is happening, and why. This will involve an analysis of the company’s distribution channels, advertising, and pricing strategy.

Technical Review 152

Technical Review Startup Satisfaction Summary 152

Both Sides of the Table

OCTOBER 21, 2009

This morning we heard from Jamie Montgomery, CEO of the venerable Montgomery & Co investment bank who is at the heart of what is going on in M&A for venture backed companies. I have to admit that I was greatly encouraged by Jamie’s outlook for venture backed companies, which if true will be a welcome relief for our industry.

Venture Capital 241

Venture Capital Technical Review Southern California Company 241

Both Sides of the Table

MARCH 12, 2017

The results are in ( full deck is published here ) but a summary would be: VCs are significantly more optimistic about the startup ecosystem and their likelihood of funding than they were just a year ago While a year ago many VCs were planning to cut their pace of investments now very few are.

Venture Capital 277

Venture Capital Artificial Inteligence Capital Startup 277

Both Sides of the Table

AUGUST 30, 2010

I’ve written about the topic of convertible debt at length before specifically about how angels & entrepreneurs should think about pricing. Convertible debt is an investment that “converts&# into equity in the future usually at a discount to your next funding round price and sometimes has a “cap&# (maximum price).

Equity 319

Equity Pricing Venture Capital Entrepreneur 319

Startup Professionals Musings

OCTOBER 19, 2022

As a summary, crowdfunding today can mean any one of the following five quite different models: Rewards model. Many platforms, such as IndieGoGo , allow startups to solicit funding commitments from non-professional investors in exchange for a pre-defined reward or perk, such as a T-shirt or other recognition, but no ownership in the company.

Funding 141

Funding Startup Outsource Development Satisfaction 141

Startup Professionals Musings

SEPTEMBER 14, 2022

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Being a public company isn’t cheap or easy.

Funding 104

Funding Summary Entrepreneur Acquisition 104

Startup Professionals Musings

JUNE 12, 2015

Every investor in your startup, even friends and family, normally expects a share of your company (equity), which means your return for all your effort goes down quickly. Of course, nothing is really free in the business world.

Pricing 100

Pricing Equity Technical Review Research 100

Startup Professionals Musings

FEBRUARY 15, 2021

For example, I once worked for a small software company selling a sophisticated enterprise workflow solution. As small companies, neither startup could afford to extend their product alone, but through creative leadership, we were able to negotiate a win-win strategic partnership for a joint product. We both often lost as a result.

Startup 173

Startup Outsource Development Examples Customer 173

Startup Professionals Musings

MAY 6, 2023

If ten percent of these numbers, multiplied by your average product price, will get you the revenue you need to scale your business, you will get the love you need from angel and venture capital investors. Peruse company reports from your business domain.

Statistics 120

Statistics Research Report Newsletter 120

Xconomy

SEPTEMBER 9, 2016

The full report is here ; a summary is here.). —Allergan CEO Brent Saunders criticized “egregious price takers” and pledged his own firm would practice responsible pricing to get out in front of potential legislative action that Democratic presidential candidate Hillary Clinton has been threatening.

Pricing 40

Pricing Startup News Screening 40

Startup Professionals Musings

OCTOBER 6, 2023

Use this opportunity to validate their satisfaction and support for your company and your solution. For reference, here is a quick summary of key elements which most investors include in their due diligence process: Key personnel review. Visit reference customers, partners, and vendors. Traction in the marketplace.

Technical Review 118

Technical Review Startup Satisfaction Invest 118

Both Sides of the Table

OCTOBER 10, 2011

The big price increase : 5 out of 5 stars. Some customer segments value the DVD business and these may be more price sensitive. They might be willing to pay higher prices (and perhaps not an “all you can eat” price but a “pay as you go” price per film). No, probably not. A blog post!

Netflix 287

Netflix Customer Custom Pricing 287

Startup Professionals Musings

JULY 8, 2022

These authors reference real cases and real business leaders, based on their decades of experience in building companies and executive coaching. I offer here their summary of purposes and inspirations that have motivated existing business leaders, with insights from my own mentoring and coaching experience.

Technical Review 143

Technical Review Coach Mentor Customer 143

Startup Professionals Musings

FEBRUARY 3, 2020

Almost instantly, via the Internet or on their smartphone in the store, they can find the lowest price alternative or their favorite features, without waiting for push marketing or listening to your best sales person. What most companies don’t realize is that businesses don’t drive customer trends anymore, customers drive business trends.

Customer 124

Customer Custom Startup Course 124

Startup Professionals Musings

AUGUST 9, 2023

Here is a summary of their key observations, with our joint specifics on what to expect, and how to overcome these obstacles: Customers don’t buy what they don’t know and understand. Many healthcare solutions, for example, may appear to have great value to patients, but require doctors to feel safe, and insurance companies to approve.

Case Study 89

Case Study Customer Custom Study 89

Both Sides of the Table

AUGUST 30, 2014

When I meet other VCs I’m constantly asking how they decide which investments to make, when to pass, when to do follow-on rounds, when to sell a company vs. when to go long, etc. He came to me months ago asking about a “strategic round” of capital for his startup at a high price. Take more advice. Stir them around.

Startup 407

Startup Framework CTO Coach Sales 407

Both Sides of the Table

JUNE 30, 2016

I understand this instinct for more capital and I have two very different personal experiences: In my first company we raised an A-round of $16.5 million and in my second company we raised only $500,000 by choice. Each person is the company has to personally do more vs. lead others doing work. People do what people do.

Startup 292

Startup Software Review Pricing Entrepreneur 292

Both Sides of the Table

OCTOBER 18, 2015

“Trade in an asset at a price that strongly deviates from an asset’s intrinsic value” The arguments against that, “This time the startups have real revenues!” “A price that strongly deviates from an assets intrinsic value” is pretty clear. ” How elegantly stated. ” ring hollow.

Venture Capital 150

Venture Capital Pricing Platform Marketing 150

Startup Professionals Musings

JANUARY 22, 2018

I was impressed with his summary of the top ten outsourcing mistakes made by entrepreneurs, followed by real guidance on how they can and should be avoided. Fixed price bidding is the only effective outsourcing model.” Getting a fixed price bid works for well-defined short-term projects, like blogging or programming.

Outsource Development 72

Outsource Development Outsource Summary Training 72

Startup Professionals Musings

JUNE 2, 2021

As a business advisor, I have to recommend even to established companies that they review and revamp their competitive strategy now, even if it appears to be working today. Features, availability, and brand are just the price of entry. The real challenge is to win massive consumer preference repeatedly.

Competition 142

Competition Software Review Social Media Customer 142

Startup Professionals Musings

DECEMBER 8, 2019

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Being a public company isn’t cheap or easy.

Summary 121

Summary Startup Entrepreneur Funding 121

Startup Professionals Musings

JULY 25, 2015

I was impressed with his summary of the top ten outsourcing mistakes made by entrepreneurs, followed by real guidance on how they can and should be avoided. Fixed price bidding is the only effective outsourcing model.” Getting a fixed price bid works for well-defined short-term projects, like blogging or programming.

Outsource Development 104

Outsource Development Outsource Startup Summary 104

Both Sides of the Table

FEBRUARY 25, 2019

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much. In the best cases boards come together to help the company get through its trough?—?in

Startup 269

Startup Venture Capital Layoffs Resource 269

Startup Professionals Musings

NOVEMBER 15, 2020

Here is a summary of their key observations, with our joint specifics on what to expect, and how to overcome these obstacles: Customers don’t buy what they don’t know and understand. Many healthcare solutions, for example, may appear to have great value to patients, but require doctors to feel safe, and insurance companies to approve.

Case Study 174

Case Study Startup Customer Custom 174

Startup Professionals Musings

AUGUST 14, 2020

If ten percent of these numbers, multiplied by your average product price, will get you the revenue you need to scale your business, you will get the love you need from angel and venture capital investors. Peruse company reports from your business domain.

Marketing 157

Marketing Statistics Research Report 157

Both Sides of the Table

NOVEMBER 14, 2017

An alternate outcome that I also unfortunately observe in some cases are companies who had extreme early success with an initial product adoption but failed in key areas that limited the growth and therefore the ultimate financial outcomes. I see many companies that don’t make this transition well.

Startup 286

Startup Technical Review Customer Custom 286

Startup Professionals Musings

JULY 7, 2021

Today your reputation online is more important than your price, service, or location. Here is her summary and mine of the steps that every business owner should follow in assessing and repairing any situation when you sense that your business reputation in is jeopardy: Assess the scope and impact of any negatives.

Social Media 144

Social Media Media Summary Satisfaction 144

Startup Professionals Musings

SEPTEMBER 25, 2020

The world keeps changing, and visible business strategies that worked well in the past, including being the premium brand or low price producer, simply don’t get the customer loyalty they once did. Today, customers are looking for real relationships, a memorable shopping experience, and satisfaction of a higher purpose.

Customer 133

Customer Custom Satisfaction Examples 133

Both Sides of the Table

APRIL 15, 2013

In part one I covered the need for early-stage enterprise software companies to build up professional services staff to ensure successful implementation projects. This post is about how to work with your largest customers when you’re an early-stage software company and about how you can increase your margins by selling your roadmap.

Customer 297

Customer Custom Pricing Startup 297

Both Sides of the Table

DECEMBER 22, 2011

If that bond isn’t there or if it feels like I’m in a bidding process for the highest price, I might as well be Wells Fargo. But one theme in pervasive in all my thinking about investing in Internet-based companies: Deflationary economics. If you’re a startup and you haven’t read my summary of Clay Christensen’s seminal work please do.

Startup 386

Startup Pricing Marketing Product 386

Both Sides of the Table

AUGUST 9, 2011

So the industry formed around a day of the week when all partners could avoid having company board meetings or traveling. Valuations were enormous relative to progress in companies. Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. tl;dr summary. Cut where needed.

Marketing 305

Marketing Venture Capital Funding Technical Review 305

Both Sides of the Table

SEPTEMBER 19, 2011

But for now feel free to read my short summary of the key principles. Very few companies ever do this. Charge the right prices for the right services – But as less people take the DVD service over time, there will be less revenue to cover the relatively high fixed cost structure of the mailer (Qwikster). No time soon.

Netflix 329

Netflix Evite Pricing Hulu 329