Berkonomics

NOVEMBER 1, 2018

So, you are close to selling your company, and counting the profits a bit early. Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. Well, that’s human nature.

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Sales Venture Capital Writing Email 480

Berkonomics

MAY 16, 2019

There must be at least several companies out there right now positioning to compete with you. There are five niches you can chose when defining your positioning strategy: price, quality, service, innovation, and elegance. Pricing strategies differentiate your business. Using price creatively.

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socalTECH

DECEMBER 3, 2015

Los Angeles-based all-you-can-fly airline is telling prospective customers that the company is planning a big pricing change on January 1st, and will increase its starting subscriptions from $1,750 per month to $1,950 a month.

Pricing 100

Pricing Burbank Hawthorne Email 100

Berkonomics

OCTOBER 20, 2022

Far too often, I come across companies with commission structures that take into account “all” the possible permutations of profit on a sale, causing everyone to wait for an accounting person to complete a cost analysis in order to find the magic number, or for a manager to rule on percentage splits for territories or products.

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Sales SaaS Pricing Course 177

Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

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Venture Capital Sales Pricing Equity 156

Berkonomics

SEPTEMBER 6, 2018

Minor decisions, such as replacing employees who have left the company or replacing equipment needing updating, are usually considered operational in nature, and unless the business is changing direction, not relevant to this test. Let’s analyze the effect of a potential acquisition upon the value of your company.

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Company Companies Acquisition Resource 120

InfoChachkie

APRIL 13, 2015

Avoid a simple pricing mistake which could sink your startup. Because I am cheap and I know that car dealers are incentivized by the manufacturer to hit quarterly and annual sales goals. Thus, the value of a sale at the end of a quarter can be significant, if the sale contributes to obtaining a manufacturer''s incentive.

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Berkonomics

FEBRUARY 2, 2023

Celebrating that strategic partnership Many of us make it a priority to find and partner with companies that can add to our offering or extend our reach. It takes real effort and planning on both sides of a partnership between companies to make it work. Why would this partnership – one that benefits both companies – fail to succeed?

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Press Sales Training Resource 156

Berkonomics

FEBRUARY 23, 2023

When do you sell your company? Companies sometime run out of cash in the midst of their increasing success, and often find that sources of loans or investment are not freely flowing at the moment of need. Not so long ago, Basil Peters wrote his book, “Early Exits,” after analyzing 150 young companies and their exits.

Pricing 156

Pricing Invest Equity Entrepreneur 156

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Strategic investors validate a business, by their presence creating the very value they pay for with increased price per share purchased.

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Venture Capital Startup Class Invest 295

Berkonomics

OCTOBER 5, 2023

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. How about young or pre-revenue companies?

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Venture Capital Product Marketing Resource 296

Berkonomics

JANUARY 28, 2021

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. And here’s the “why.”. Lessons founders learned.

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Outsource Development Startup Outsource Venture Capital 156

Berkonomics

MAY 8, 2014

I am chairman of a company that, as I write this, is twelve years old and has not yet taken a dollar of outside investment. The company has been funded entirely by grants from the National Institute of Health, amounting to millions of non-dilutive dollars in all. How refreshing!

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Company Companies Writing Education 166

Berkonomics

SEPTEMBER 2, 2021

Assuming that you are the elected or self-assigned negotiator, the last thing you want is to have them in the room while you haggle over price. There’s the disengagement with an angry employee threating to sue the company. Email readers, continue here…] All of the above issues are personal to a CEO, founder or entrepreneur.

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Pricing Examples Training Email 156

InfoChachkie

JANUARY 5, 2015

In his premier film appearance in the blaxploitation send-up “I’m Gonna Git You Sucka,” Chris Rock inadvertently addresses a key pricing challenge faced by most entrepreneurs. Watch this 93-second clip and see if you can identify the pricing pitfall addressed in this humorous snippet. Price = Value. How Much For A Rib?

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Berkonomics

DECEMBER 21, 2017

Once a company founder has tapped the funds available from his or her resources and from friends and family, if the company needs more cash for growth, the most obvious next step is to look for money from angel investors and venture capitalists, typically in the $300,000 TO $3,000,000 range.

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Invest Sales Resource Email 243

Berkonomics

FEBRUARY 3, 2022

It is perfectly OK for you to want to grow your company and plan to keep control for you and your offspring, with no intention to sell. The advantage of creating an evergreen company. I was able to negotiate a “put” of my shares back to the company at 5x my investment. What if you later decide to just keep control?

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Equity Course Sales Invest 156

Berkonomics

JULY 26, 2018

These are so succinct, so well defined, so precise that everyone in sales and everyone involved in marketing must be able to answer these three questions without pause, and convincingly. It would pay you to work over this set of questions in a special session with sales, marketing and senior management in the room at once.

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Berkonomics

MARCH 8, 2018

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. You do not pay professional investors who are serving on behalf of an investment company or VC and paid by that company.

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InfoChachkie

JANUARY 14, 2013

If you have your eyes and ears open, you can discover sales lessons in unexpected places, including the cable TV show, Say Yes To The Dress. There are a number of solid sales techniques on display by the Say Yes team. Throughout the sales process, they continually probe and modify their sales approach, based on the bride's feedback.

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Sales Startup Activity RSS 251

Berkonomics

JUNE 15, 2017

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. So be aware that professional investors are in your company for the eventual large profits at the liquidity event.

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Berkonomics

JULY 19, 2010

Once a company founder has tapped the funds available from his or her resources and from friends and family, if the company needs more cash for growth, the most obvious next step is to look for money from angel investors and venture capitalists, typically in the $300,000 TO $3,000,000 range. Email readers continue here.]

Pricing 120

Pricing Invest Startup Sales 120

Tech.Co

JUNE 3, 2022

Square is teaming up with Apple to enable the ‘Tap to Pay' iPhone functionality within the Square Point of Sale app. Now, though, the companies both seem to agree that they'll turn larger profits by teaming up — even if it might mean a slowdown in Square's hardware sales in the long term. Please fill in your email.

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News Newsletter Sales Tips 155

TechCrunch LA

JULY 19, 2022

The process for retailers and brands to liquidate excess inventory hasn’t changed very much, if at all, and while some retailers were able to build operational infrastructure to service the off-price channels, it continues to be a constant pain point. How e-commerce companies can brave the new retail environment.

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Product Funding Technical Review Equity 191

Berkonomics

DECEMBER 31, 2020

I was chairman of a company that, for twelve years never took a dollar of outside investment. The company was funded entirely by grants from the National Institute of Health, amounting to millions of non-dilutive dollars in all. Email readers, continue here…] Grant writing takes skill and immense amounts of time.

Equity 156

Equity Writing Education Research 156

Berkonomics

NOVEMBER 11, 2021

Venture capitalists sometimes make an error in directing their portfolio company CEOs to push resources to the limit and scale the business to immense size quickly, all to seize market share. It was true for Amazon and other visionary companies that grabbed market share during the early Internet era. But beware.

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Venture Capital Social Media Invest Marketing 156

Berkonomics

JUNE 11, 2020

Solar panel installations break even only after over years of use, even with subsidies offered by the electric companies or by the Federal government. And adoption of solar technology for home and business was relatively slow until solar companies began offering systems as rentals with guaranteed returns.

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Examples .Net Pricing Email 156

Berkonomics

SEPTEMBER 3, 2015

We are pleased to host Basil Peters, perhaps the best known name in the world of early stage company exits. Selling an entire company is similar to selling shares in the public markets – how much you can get depends on how the company is doing, but also on how the overall market is behaving. By Basil Peters.

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Pricing Demand Marketing Email 120

Berkonomics

OCTOBER 21, 2021

This one seems non-negotiable for many non-production-line workers and offers savings for both the company and employee if properly implemented and supervised. And there are some industries where tools such as stock options are considered mandatory for a company to be competitive. But back to the money issue….

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Design Examples Competition Pricing 156

Berkonomics

JUNE 29, 2017

If you have been following our recent insights, you’ll be up to speed knowing that professional investors negotiate tough terms, from provisions of control over asset acquisition, eventual sale of the company, future investments, forced co-sale when others attempt to sell their shares and more.

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Invest Entrepreneur Sales Startup 243

Tech.Co

MAY 6, 2022

Ecommerce company Shopify supports small businesses with technology like ecommerce website builders and retail Point of Sale systems. billion in stock and cash to buy the ecommerce shipping company. The two companies are a great match, according to Shopify's press release about the deal. Please fill in your email.

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Networking Press Newsletter Startup 125

Berkonomics

SEPTEMBER 15, 2016

Sales people are incentivized by money. Email readers, continue here…] For those who have tried (and perhaps built) a commission structure based upon anything other than gross revenue, there are some relatively easy solutions for simplification. Many smaller companies pay commissions as cash is received.

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Sales Pricing Email Examples 120

Berkonomics

JANUARY 16, 2020

Sometimes it is the first thought you or your managers have when in need of skilled talent, especially for sales or product development. Two slices of the pie for one price. And it is a tempting slice of pie – two slices for one price – to take a critically needed employee from a competitor, damaging that firm while building yours.

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Pricing Email Sales Product 156

Berkonomics

FEBRUARY 7, 2019

Email readers, continue here…] Over the years, I have been delegated by more than several entrepreneurs and boards to negotiate critical agreements, sometimes to sell the company or merge it with another. Removing the emotion from a negotiation. A story of a big win-win. And a successful outcome.

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Pricing Sales Tool Entrepreneur 120

Berkonomics

FEBRUARY 7, 2019

Email readers, continue here…] Over the years, I have been delegated by more than several entrepreneurs and boards to negotiate critical agreements, sometimes to sell the company or merge it with another. Removing the emotion from a negotiation. A story of a big win-win. And a successful outcome.

Pricing 120

Pricing Sales Tool Entrepreneur 120

socalTECH

FEBRUARY 4, 2013

spends hundreds of millions of dollars on a media property, runs it for about seven years, and then decides to unload that same property for a fraction of the price it paid to a Southern California technology--not media--company. Well, could be. How about IGN ? READ MORE>>.

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News Southern California Sales Los Angeles 159

Berkonomics

OCTOBER 1, 2015

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

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Angel Sales Pricing Equity 120