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How To Win Big Deals When Your Company Is Small
It was the week between Christmas and New Year’s. We had just started shipping our first products a few months earlier. It was dead as a doornail during the last week of the year. Web traffic was drying up. The phones were barely ringing. Do you want to grow your business? Maybe I can help.…
Read MoreHow Do You Recruit Senior Employees For Your Startup?
The average age of the engineering team at my company was 44 years old. The engineers on average had 10 patents. The team, by industry standards, was considered elite. Now, I assume you want to recruit really good senior people, not just mediocre senior employees. Hiring mediocre senior employees requires no skill. I think there…
Read MoreWhat Should You Do When A Cofounder Quits And Holds Your IP Hostage?
I know the pain too well of cofounders quitting. I had two cofounders (“Jim” and “John”). I was the CEO, Jim was the marketing guy, and John was the engineering guy. We had worked together previously, and we understood the plan and direction we were going in. We started pitching VCs after working on the…
Read MoreHow Important Is It That Founders Have Over 50% Equity?
I think the question implies that the founders need to protect themselves from getting screwed, so having 51% ownership means they can’t be outvoted. Let’s say you start with 51%. Then you raise money and over time your stake is diluted to 20%. What are you going to do? Here’s the reality: There is always…
Read MoreWhat Percentage Of Silicon Valley Startups Ever Make A Profit?
I was talking to a friend of mine who had recently sold his company for $300M. He said to me, “Brett, I’ve never been involved in a company that made a profit.” And I would bet over 95% of all startups, including the ones that have gone public, are never profitable. Just look at this…
Read MoreHow Can I Get A Fortune 500 Executive To Be An Advisor?
A person is not great just because they are a COO or a CEO. They are no better or smarter than you are. That being said, treat this person (and all people) with respect. Let me give you two simple tips for how to reach out to a potential mentor: A. You have to give…
Read MoreWhat Moral Obligations Do CEOs Have To Their Employees?
Thank you again, ideal employee, on everything you continue doing. We could not achieve what we want without you. I asked you to be loyal, be a positive force, do your best always, recruit your friends, have the company’s best interest always in mind, own up to your mistakes, don’t wait to tell us about…
Read MoreShould I Work With My Best Friend As A Cofounder?
I had a very close friend who was a co-founder of my company. Here’s what happened: “You have an EQ of zero!” Ken yelled at me. “What the hell is an EQ?” I asked. “Perfect!” Ken screamed back. Then he hung up the phone. Those were the last words Ken ever said to me. Just…
Read MoreWhen Should I Hire A COO?
I added a COO as a cofounder to my company. He was talented, had tons of experience and knowledge, and he helped me secure funding. There was just one little problem with having a Chief Operations Officer in a startup, especially an early stage startup. And that problem is… Startups, especially early stage startups, don’t…
Read MoreIs It Good To Approach Multiple Investors At The Same Time?
YES! Absolutely go to multiple VCs in parallel. I was fortunate to be an Entrepreneur in Residence (EIR) at a leading Bay Area VC. I learned something very important: A VC will invest in one company for every 100 face-to-face meetings a partner takes. The only fighting chance you have is pursuing multiple investors. My…
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