Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. Thus the real discussion must start with who will be doing the work, providing the funding, and delivering results. Each cofounder should get equity for value, based on these key variables.
Management
Leverage Market Downturns as Investment Opportunities
Chaos followed for most businesses in the wake of the Coronavirus: the stock markets crashed, product demand fell and unexpected losses started to build up. Most businesses did everything they could to batten down the hatches to help them best weather the storm, including stopping all discretionary investments. But, should they have? Most great investors, like Warren Buffett, have been quoted as saying their highest return investments were made during the middle of economic downturns. So, theoretically, your highest return investments could be made right now, during the peak of the negative economic impact coming out of COVID-19. So, instead of retreating right now, you may be best served long term by accelerating your long term investment efforts, if you have the capital to do so. Allow me to explain.
Why Our Founder Reputation Matters
How does my reputation as a Founder (not my startup) affect me over the long term? If my reputation is tarnished, where will it hurt me? Where does that reputation really come from anyway and what can I do to develop it?
7 Success Factors When Your People are the Solution
The critical success factors for a product business are well known, starting with selling every unit with a gross margin of 50 percent or more, building a patent and other intellectual property, and continuous product improvement.
Why You Need to Form an Advisory Board to Help Raise Capital
Is this you – “I’m thinking about raising capital but I don’t know where to start. How do I start building a network of people who can help make introductions to investors and guide me through the process”. Read on…
7 Costs to Consider Before Taking Your Startup Public
A rundown of things you absolutely must know before taking your company public.
5 Internal Processes to Increase Customer Retention
While it is important for SaaS companies to give net promoter score (“NPS”) its due, net dollar retention is typically the north star metric for customer retention. Customer success teams can move the net dollar retention needle in two ways: reducing churn (and contraction) and growing their existing customer contracts.
The Right Way to Ask for an Introduction
I saw someone in your social network that I’d love to get an introduction to. How can I make that ask while making you feel good about doing it?
7 Startup Marketing Strategies To Bring In Customers
Basic beginners guide to startup marketing strategies with an explanation of several channels that are easy to understand.
Do You Have Ideas, or Do You Have Passion?
Ever heard of Traf-o-Data? No, because it was Bill Gates’ failed business idea before he started Microsoft. Jeff Bezos, the richest man in the world, even has a failed auction site with Sotheby’s under his belt. The point is that ideas won’t always convert into profitability.
Creating a Symbiotic CEO and CFO Partnership
One of the most important drivers of a successful management team is the relationship between the CEO and the CFO. The CEO is often times the headstrong, overly optimistic driver of the business; and the CFO is often the more mild-mannered, ultra-conservative controller of the company’s purse strings. Too much of one, and the business will race off a cliff, and too much of the other, and the business will suffocate. This post will teach you how to create that perfect harmony in the relationship between your CEO and CFO.