Startup Professionals Musings

OCTOBER 16, 2023

Projecting financials is a natural extension of the homework every entrepreneur needs to do on customer opportunity size, product costs, pricing, competition and customer value. Forecast sales-volume expectations. This should always be a “bottoms-up” commitment from your sales team, not your own optimistic guess.

Startup 116

Startup Pricing Sales Statistics 116

Berkonomics

DECEMBER 20, 2018

Since I am a proponent of using equity as a tool and he is so much opposed, this week it is his turn to make the case. These are your candidates, because they are companies already absorbing much or all the marketing expense necessary to make sales of your invention. Do I understand the royalty replaces the need for equity investors ?

IP 120

IP Product Equity Tool 120

Both Sides of the Table

MARCH 31, 2012

Jeff (also an HBS alum) co-teaches the LTV course with Professor Eisenmann about a student of theirs who had written a blog post about sales taking on some of my previous assertions. That student is Erin McCann who formerly worked in sales at Google, so she has some ground to stand on in her assertions.

Startup 319

Startup Sales Course Competition 319

TechCrunch LA

DECEMBER 8, 2020

He did note that in the four markets where the company has gone live since launching its business in January 2019 — San Diego, Los Angeles, the Inland Empire , and Sacramento — has yielded an annualized revenue run rate of over $400 million in gross merchandise value (the total value of home sales transacted on its platform).

Sales 282

Sales Demand San Diego Funding 282

Startup Professionals Musings

FEBRUARY 9, 2020

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. 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.

Technical Advisors 123

Technical Advisors Outsource Development Startup Outsource 123

Startup Professionals Musings

FEBRUARY 5, 2021

If you don’t have a destination, don’t waste your money trying to get there, and don’t expect anyone to support you along the way Projecting financials is a natural extension of the homework every entrepreneur needs to do on customer opportunity size, product costs, pricing, competition and customer value. Forecast sales-volume expectations.

Startup 147

Startup Pricing Sales Statistics 147

Berkonomics

JUNE 8, 2017

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). Venture, private equity and more: Here we lump a large number investor classes into one. For you who fit that description, nice work.

Venture Capital 266

Venture Capital Class Invest Equity 266

Startup Professionals Musings

SEPTEMBER 22, 2021

As you may have seen on the Shark Tank TV show, offering a tiny equity amount for a large investment will not endear you to investors. They need to believe your valuation, based on current revenue and intellectual property, and feel the equity offered gives them a real return for the risk.

Ideas 140

Ideas Entrepreneur Equity Resource 140

TechCrunch LA

OCTOBER 28, 2020

” Both Vaughn and his Saucey co-founder Daniel Leeb will take management positions at PCH, and Blumberg Capital and Bullpen will have a large equity stake in the newly formed holding company, Vaughn said. Its sales growth has expanded 200% year-over-year even as the company maintains its profitability, according to a statement.

Company 188

Company Companies Los Angeles San Diego 188

Startup Professionals Musings

FEBRUARY 8, 2013

Look at the big picture first of development, finance, and marketing/sales. The passion has to be in the business context – meaning results oriented, customer oriented, and sensitive to competition. Passion for what they do. In many cases, experts with academic or research credentials are not good partners for a business venture.

Software Review 103

Software Review Equity CTO Hire Outsource Development 103

Startup Professionals Musings

MAY 8, 2022

You have very little money, and you don’t want to give away your equity. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. 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.

Startup 130

Startup USC Entrepreneur Equity 130

InfoChachkie

JULY 11, 2011

By combining our equity investment with a tranche of venture debt, the company has avoided a larger equity round, which would have significantly diluted the Founders’ ownership share. Dollar Blend – Many venture debt lenders require that their funds be accompanied by an equity investment, generally from legitimate venture capitalists.

Equity 235

Equity Startup Invest Funding 235

Berkonomics

JANUARY 26, 2017

The most striking example was the one hundred–million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Just think of the second tool, terms, you can use creatively to bridge that gap, whether driven by seller’s ego or competitive necessity. It’s an easy rule to remember.

Pricing 120

Pricing Sales Tool Equity 120

Startup Professionals Musings

OCTOBER 6, 2023

A smart investor will take an independent final reading in the market on barriers to entry, active competition, demographics, and price sensitivity. Sales and distribution channel activity will be analyzed, as well as cost of customer acquisition, to make an independent assessment of your financial projections.

Technical Review 118

Technical Review Startup Satisfaction Invest 118

InfoChachkie

AUGUST 11, 2014

For instance, a team comprised solely of engineers is greatly handicapped, as is a team exclusively made up of sales and marketing executives. Competitive Rivalry - Constructive internal competition that does not derail a startup from achieving its strategic goals will enhance your teams overall performance.

Startup 257

Startup Santa Barbara Competition Journal 257

Startup Professionals Musings

FEBRUARY 13, 2016

This is also the place to first mention patents and any other differentiators that put you ahead of competition. Every new offering has competition and alternatives, so it’s not credible to claim no competitors. What are your specific marketing and sales plans? How big is the funding request, and how much equity will you give?

Invest 108

Invest Startup Slides Equity 108

Startup Professionals Musings

MARCH 3, 2021

Postulate competitive reactions and your responses. Equity investors realize that they won’t see any real return until an exit occurs, such as a sale, merger, or IPO. Building a sustainable business is more like a marathon than an event. You need to talk about partnerships, employee roles, distributors, and strategic alliances.

Entrepreneur 162

Entrepreneur Social Media Examples Metrics 162

Startup Professionals Musings

MAY 29, 2015

Some people feel that organic growth is “better” because it requires real innovation and sustained effort to create long-term competitive advantage through differentiation and efficiency. These relationships need not require cash investments; often they are done with exchanges of equity or assets. Economies of scale.

Organization 100

Organization Startup Competition IBM 100

Both Sides of the Table

MAY 13, 2018

The most important advice I could give you before you set out in fund raising mode is to understand that fund-raising a sales & marketing process and needs to be managed. Somehow many first-time founders equate “sales” with something that is beneath them. In sales there are also three rules: Qualify, qualify, qualify.

Venture Capital 332

Venture Capital Funding Startup Sales 332

Startup Professionals Musings

SEPTEMBER 13, 2015

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. 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.

Technical Advisors 105

Technical Advisors Outsource Development Startup Outsource 105

Startup Professionals Musings

JANUARY 24, 2021

A smart investor will take an independent final reading in the market on barriers to entry, active competition, demographics, and price sensitivity. Sales and distribution channel activity will be analyzed, as well as cost of customer acquisition, to make an independent assessment of your financial projections.

Technical Review 151

Technical Review Startup Satisfaction Invest 151

Berkonomics

AUGUST 27, 2015

In the case of technology and Internet-related companies, competitive advantage will have only a relatively short lifespan and that therefore the window of opportunity is not infinite. The Flipper’s executives usually have significant equity holdings, either actually owned or reflected in stock options.

Entrepreneur 120

Entrepreneur Equity Competition Pricing 120

Startup Professionals Musings

DECEMBER 5, 2016

Offer incentives or competition. There is nothing like friendly competition or an attractive reward to bring out a new base of un-edited ideas. I find that startups rarely think of customers as investors, even though major customers might see ROI as a positive reason to invest in future growth, and chose to pay for equity.

Ideas 103

Ideas Competition Customer Custom 103

Startup Professionals Musings

FEBRUARY 18, 2018

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. 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.

Technical Advisors 57

Technical Advisors Startup Outsource Development High Tech 57

Startup Professionals Musings

JUNE 11, 2014

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. 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.

Technical Advisors 98

Technical Advisors Startup Outsource Development Outsource 98

Startup Professionals Musings

NOVEMBER 17, 2012

Some people feel that organic growth is “better” because it requires real innovation and sustained effort to create long-term competitive advantage through differentiation and efficiency. These relationships need not require cash investments; often they are done with exchanges of equity or assets. Economies of scale.

Entrepreneur 99

Entrepreneur Organization Startup Competition 99

Startup Professionals Musings

AUGUST 27, 2012

Competition and sustainable advantage. List and position your competition, or alternatives available to the customer. Highlight your sustainable competitive advantages, and barriers to entry. Marketing, sales, and partners. Describe marketing strategy, sales plan, licensing, and partnership plans. Exit strategy.

Slides 99

Slides Competition Sample Sales 99

Startup Professionals Musings

JULY 27, 2018

Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. Intellectual property and sustainable competitive advantage. Customized marketing strategy and realistic sales plans. “If

Product 58

Product Slides Entrepreneur Invest 58

Startup Professionals Musings

AUGUST 10, 2019

You have very little money, and you don’t want to give away your equity. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. 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.

Startup 97

Startup USC Statistics Entrepreneur 97

InfoChachkie

MAY 16, 2011

1) Expect Independent Channel Sales Reps To Perform Missionary Sales. Rationale: I cannot afford to hire a direct sales force. Fallacy: Third-party, OEM (Original Equipment Manufacturing) representatives succeed once the sales process is defined, proven and documented. Public relations at a startup is a sales process.

Startup 242

Startup Outsource Development Outsource Writing 242

Both Sides of the Table

MAY 24, 2018

controlling your psychology ) you no doubt have heard me say that raising capital is a sales & marketing process. This is Sales 101. If you’ve read any of my ongoing series on fund raising from venture capitalist (episode 1?— ?controlling that’s a lot riding on your pitch and the willingness of the sponsoring partner to advocate.

Venture Capital 314

Venture Capital Technical Review Invest Slides 314

Both Sides of the Table

SEPTEMBER 10, 2021

Our fund (Upfront Ventures) recently returned >1x an entire $200 million fund just selling small minatory in secondary sales while still holding most of our stock for an ultimate public market exits. If we wanted to we could have sold > 2x the fund easily in the secondary markets with significant upside remaining.

Venture Capital 471

Venture Capital Writing Invest Pricing 471

Both Sides of the Table

JANUARY 4, 2014

But I would posit that in order to sustainably build great products in an intensely competitive industry with skills shortages – people management is one of the most critical soft skills organizations need. – while the other might want a quick sale and pocket some bucks while the tech market is hot. Equity for the future?

Startup 340

Startup Technical Review Course Press 340

Startup Professionals Musings

AUGUST 13, 2012

It always amazes me how an entrepreneur can define his market opportunity so broadly, and then assess his competition so narrowly in the next breath. Competition and sustainable advantage. List and describe your competition, direct and indirect, including customer alternatives. Asserting you have no competition is not credible.

Competition 113

Competition Metrics Startup Invest 113

Startup Professionals Musings

AUGUST 7, 2015

Competitor positioning and sustainable competitive advantage. Customers may be attracted to your marketing message, but investors look harder at the startup team, seeking superior expertise in the key areas of growing a business, product domain, financial, marketing and sales. Specific elements of your marketing and sales plans.

Product 103

Product Slides Customer Custom 103

InfoChachkie

JUNE 4, 2012

As an entrepreneur, I helped create companies which achieved two IPOs and two trade sales totaling $385 million. Public relations at a startup is a sales process. Evaluate their sincerity by asking them to accept equity in exchange for all or a portion of their overall compensation. Over-promise And Under-deliver.

Entrepreneur 272

Entrepreneur Outsource Ideas Technical Review 272

Tech Zulu Event

MARCH 7, 2013

CapLinked also netted in new customers such as Thomson Reuters, Sun Capital, and Equity Partners, NextView Ventures and crowd-funding service AI Verified which will take advantage of its iPad compatibility, bulk uploading, and reporting tools. According to Eric M. Steering Innovation In The $730 Million VDR Industry.

Mobile 91

Mobile Report Pricing Tool 91