Forums Search

A prospective client asked me to sign a Non-Disclosure Agreement (NDA) the other day before we began working together. After agreeing to sign his document, I was promptly shown a boilerplate template of an NDA that the guy had downloaded from the internet.

I had to laugh inside because I always tell my clients to secure an NDA whenever they are showing company information, a business plan and especially financials to anyone, yet I think NDAs are documents produced for honest people to be reminded to be honest.

I’m wondering if anyone else feels NDAs provide a sense of security?

According to Wikipedia, an “NDA creates a confidential relationship between the parties to protect any type of confidential and proprietary information or trade sec...

What happens when the people who helped start a company are no longer qualified to work there?

▸ What about Kimberly who became CFO because she was the only person at the time who had taken an accounting course?

▸ How do you find a home for Willis who was the jack-of-all-trades …but now is the master of none?

▸ Should Arnold still be leading the engineering team even though he has less experience than the entire team now?

As our startups mature, we are quickly faced with the harsh reality that the folks that were critical at one stage of our growth are woefully under-qualified for our current state of operations. Things get weird. We can feel the tension mounting as we try to wrestle with our own evolution and how it impacts each team membe...

Being a Founder is a job that anyone can get and no one is qualified for.

My 9-year-old daughter became a Founder last year within 60 minutes of forming her own company online (she didn't even need my help). I'd argue she's about as qualified as most of the Founders I meet at Startups.com, and that's not a knock. It's to say that none of us are "qualified" to be a Founder, not because we're not smart enough, or capable enough, or experienced enough — it's because fundamentally it's impossible to be qualified for this job.

We Can't Be An Expert At Everything

The difference between a Founder leading a startup and a CEO leading an established business is that the Founder has to be there from the start when no one else is there. That means the...

When you’re figuring out how much a startup CEO's salary should be, there are a lot of factors to consider.

How much can the company afford to pay? What stage are you in? How much runway do you have? If you already have investors, what are their thoughts on the issue? How much do you need to support yourself and your family?

Those are just some of the questions that are probably rolling around in your head, whether you’re trying to figure out your salary as the CEO, you’re trying to figure out your co-founder’s salary as they take on the CEO position, or you’re thinking of bringing in an outside hire. Add on location, marital status, age, savings… and the list goes on and on and on.

So how do you determine what an average startup CEO salary sh...

The worst time to get tired in a race is at the end.

Now, imagine we've just run a marathon (it's called a startup) and at the very end of that marathon is the finish line (it's called an exit), but we're too tired to make it across. Can you imagine a worse time to be out of energy than the moment where we're just about to win the race?

Yet many Founders, by the time we get to our most important milestone (the sale), just have nothing left. So we capitulate. We agree to silly terms, or unrealistic expectations, not because we think it's a good deal, but because we just want to be done with any deal. We're incredibly vulnerable, and that's incredibly dangerous.

"But I Just Want to be Done With it!"

Look, I get it. By the time we're teeing up...

What are angel investors?

Angel investors are wealthy individuals who invest in startups, usually at the early stages. Sometimes angel investors pool their money with other angel investors, forming an investor pool.

The typical angel investor is someone whose net worth is likely in excess of $1 million or who earns over $200,000 per year. Incidentally, those look a lot like the credentials of an accredited investor.

Realize, though, that the angel investor is playing with their own money — not invested capital — so even though they may be a high net worth individual, they are still looking at money coming out of their personal bank account.

Federal angel investment tax credits

When you’re talking about federal angel investment tax credits,...

Are you in the startup or growth and establishment phase of your business? Odds are you’re already thinking about the importance of location.

Where you’re located might not be a huge concern when you’re the sole member of your “team”. However, once you grow the business past a critical point, you’ll need to attract additional talent and investment.

The temptation to set up shop in an inexpensive city is entirely understandable. On the face of it, it seems the most cost-effective option. After all, startup hubs such as New York, San Francisco, London, and Singapore regularly rank in the top 10 most expensive cities in the world, both for cost of living and cost of doing business. So why not go somewhere cheaper? Or even further afield: to a ...

Crowdfunding has become an increasingly popular way for individuals and businesses alike to raise much-needed capital. The relatively low cost of entry and accessibility of popular crowdfunding platforms have fueled this revolution in funding.

But while it might look easy — and seem like a no-brainer — to launch a crowdfunding campaign, there are strong pros and cons to consider.

Founders considering launching a crowdfunding campaign might wonder:

1. Is it worth it?
2. How hard will it really be?
3. What are the true pros and cons of crowdfunding?

To answer those questions (and a few more that people might not have even thought of), we reached out to our network of crowdfunding experts.

Our list includes founders of crowdfunding platforms, serial...

Startups create financial projections in the form of a "Pro Forma Income Statement" — which simply means a financial forecast. Early-stage startups are still building their financial models with assumptions, forecasting everything from sales revenue to marketing costs to a basic cash flow projection.

We're going to explain exactly how to build financial projections for your startup even if you have no idea where to start!

Financial Projections are just Assumptions

Most businesses that have been around a while have historical financial statements that detail how operating expenses, direct costs, fixed costs, and their sales forecast have worked all along — startups have none of this.

Therefore instead of working from real-world data to build our...

In a world of billion dollar exits and absurd funding rounds, startup Founders have lost sight of what financial success really is.

Don’t get me wrong… Having billions of dollars is amazing. But, you know what else is cool? Making a million flipping dollars. Especially when you don’t have a million flipping dollars!

Let’s take the time to recalibrate how we think about startup success — and more specifically — Founder success. When we get to the point where we can only think of “success” as some astronomical, arbitrary outcome, we’re headed down a very dangerous path that affects our startup, our finances and — if we’re being honest — our health.

“But a $1 million business isn’t very big.”

No, a million dollar business isn’t very big. ...