Leadership and Management
Should You Or A Potential Investor Open The Price Negotiation?
There are too many people that think raising money is like an episode of Shark Tank. You say, “I’m raising $XM at a valuation of $YM” just like they do on Shark Tank. Not only does providing a valuation makes you look like an amateur, providing a valuation can reduce the value of your company.…
Read MoreWhat Should You Do While Your Team Builds Your First Product?
The first CEO job I ever interviewed for, the recruiter said to me, “As CEO you recruit, recruit, recruit, and you sell, sell, sell.” I didn’t get the job. Then, I started my own company and became CEO. And what did I do? Recruit, recruit, recruit, and sell, sell, sell. Recruiting and selling were always…
Read MoreShould You Take A Vacation As A Startup CEO?
We closed our funding in early April, and we had a previously scheduled vacation to Hawaii in June. So, what did I do? I took the vacation of course. And I had a really nice time. My wife and daughter had a nice time too. I took a vacation every year I was CEO. I…
Read MoreWhat Are The Best Books For CEOs To Read?
I know you’re busy as founding CEO of your company, but make time to read. The reading will likely pay off for you big time. I like using Audible as a way to improve my productivity. I can listen to a book while driving. Or I can listen to a book while going for a…
Read MoreWhat Do I Do If I Run Out Of Money For My Startup?
I recently started working with a young entrepreneur named “Chris”. Chris has a really cool idea to disrupt the industry he is in. On a shoestring budget Chris has built up a large customer base, and Chris is generating revenue. One of the first things I will usually ask an entrepreneur is to review the…
Read MoreShould You Bootstrap Or Take VC Funding?
If ever there is a question where the answer is “It depends”, this is the question. I’ve known entrepreneurs that have bootstrapped that have made a fortune, and I’ve known entrepreneurs that raised VC money that made a fortune. I don’t really think the question is whether bootstrapping or VC funding yields you the most…
Read MoreHow Do You Stop Employees From Going To Competitors?
I was recently asked the question, “What should I do to keep an employee that has quit from leaving.” I was happy to answer the question because I have a perfect batting average as CEO of keeping employees from quitting. That’s right. 0.00%. Employees, in my experience, have usually made up their mind when they…
Read MoreHow Do You Estimate How Much Money You’re Going To Spend?
I like using the simple formula of $200K/Head/Year to figure out how far your funding will take you. Let’s say you raise $10M, and you want the money to last two years. That means you can have around 25 employees: 25 employees x $200,000/Yr = $5,000,000/Yr. And you’ll find this formula to be reasonably accurate…
Read MoreHow Do You Predict Revenue For A Startup?
“Most startups are horrible at forecasting their revenue, and you’ll find us to be no different,” Barry, our chairman of the board said to a prospective investor. Everyone laughed because there was a lot of truth in what Barry was saying. Startups are usually horrible at forecasting revenue for two reasons: A. Founding CEOs are…
Read MoreHow Do You Manage Your Costs Early On?
“Are you personally signing every check?” Bill asked me at dinner. I had worked for Bill years ago. Bill was seriously old school in his approach. “Yes, I am,” I replied. “That’s good,” he said. “That’s an important tool for you to keep control of the spending.” Bill was right. Signing every check was important.…
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