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What's more fair than a 50/50 equity split?

Well, chances are a 50/50 split is a bad deal for one person - the person who will contribute more value over the long haul. The problem comes when we make those determinations of future contribution based on the least we will ever know - where we stand before we start our startup.

Fortunately, there are a few ways to address the split differently, focusing on what our contributions may be over time.

Why should I be concerned about a 50/50 split?

Because the likelihood that both parties will contribute the exact same amount of value over the course of the startup’s life is incredibly low, especially in the formative years.

One person may be contributing a ton of value relative to the moment in t...

The moment we sell our startup — the party is over.

Sure, we'll throw an actual party to thank everyone for taking the ride with us. We're going to issue well-crafted statements internally and externally about how this new partner is what we've been waiting all long for, regardless of whether it actually was.

But once those momentary celebrations subside, we're going to look around at what's left like a frat house after an all-night rager and think "Well damn, now what?" We worked so hard to get to this point, we often have no idea what would happen to the startup once it reached that penultimate moment. But, we're about to find out.

Waking Up Next to a Stranger

By the time we've signed the deal and watched that big wire land in our account...

Business incorporation! It’s not the sexiest topic — but it’s very important. So let’s take a look at one type of business incorporation — LTDs — and see how they compare to a couple others. Bear with us, here. We promise you’ll be glad you paid attention.

1. What is an LTD?

LTD stands for “limited,” and it’s a type of business incorporation used primarily in the UK, Canada, and Australia. When you see it — or “LTD” — as a suffix to an official company name, it indicates that it is a private “limited company.” That means that if anything happens to the company — like bankruptcy or getting sued, for example — then the investors are only responsible for the capital that they originally invested. This arrangement protects the personal assets o...

If you’re running a business or a department in a growing enterprise, then you probably face productivity challenges on a regular basis. You’re not alone in that. Over the past decade, I’ve had to juggle a number of projects at the same time, which has stretched my focus to its limits.

There’s plenty of research that says multitasking on a micro level can harm your productivity. When you’re trying to manage multiple projects or businesses, it’s easy to get overwhelmed and let productivity slip. You take on too much work and wind up doing more harm than good.

I recently had the chance to interview Noah Kagan, founder of SumoMe, to find out how he and his team manage to stay so productive (and increase productivity) amid tremendous growth an...

##What is a general partnership? A general partnership is a business agreement where two or more people (partners) agree to share all of the profits, liabilities, and assets of a business.

General partnerships don’t have any liability protection, so both partners are legally and financially liable for the actions of the other. That means, for example, that if one partner is sued by an upset client, then the other partner’s personal assets — like their home, car, savings, etc. — can be forfeited as payment.

In order to become a general partnership, you need at least two people who agree to take on each other’s liabilities. While oral agreements do count, it’s always a good idea to get everything written down and signed in an articles of pa...

“You didn’t ask.” Of all the things a business should hope to never hear the customer say, this has to rank near the top. Because it is so easily avoidable. Because the fault for never asking falls entirely on your shoulders. There are even automated tools to help you learn more about what your customer is thinking – to ask without asking!

UserCompass automatically sends NPS (net promoter score) surveys so you can know what your customers really think of you and so you can track their loyalty over time.

Currently, UserCompass surveys your Stripe customers. All you have to do is connect your Stripe account. Then UserCompass will automatically send NPS surveys and give you their feedback.

The service strategically waits three days from the t...

We’re going to do it. We’re going to be the easiest, most exciting, best way anywhere to get craft beer. And we’re going to do it while having a shit-ton of fun.

Some of the most interesting startups are the ones that appear to be simple from the outside but, when you lift the hood and look inside, are actually incredibly complicated and technical.

That’s definitely the case with BREWPUBLIK, the beer subscription service that is really basic, at least from the consumer’s perspective. All they have to do is tell BREWPUBLIK what kind of beer they’re into and new beer suited to their taste appears on their doorstep once a month. It’s like magic!

Or is it?

BREWPUBLIK founder Charlie Mulligan says that it’s not magic that brings those beers to ...

Great companies are born from dumb ideas.

That's now how we think about them, though. We all have this fantasy that great companies start with a clear, genius vision for the world, and the rest of our time is spent just realizing that vision. That sounds awesome, but that's not at all the way ideas work, and that fundamental misunderstanding by Founders prevents a lot of great companies from ever forming.

No Shame in Dumb Ideas

The reason as Founders we prevent ourselves from finding great ideas is that we're ashamed of pursuing dumb ideas. Facebook was a dumb yearbook app long before it became the most powerful social media tool in history. In fact, before I go listing a ton of examples of every major company you've heard of that was a dum...

Startups and venture capitalists are so closely linked in the tech world that it can be hard to think about one without the other.

We certainly wouldn't have our tech giants, like Facebook or Twitter or basically any other startup-gone-big you can think of without VCs. But, finding and getting venture capital for your startup can be daunting. Where do you start? How do you start?

Don't fret — we've got you. Keep reading for more information on how to get venture capital funds for your startup.

Before we dive in, let's make sure we understand a few terms:

VC Funding

VC funding is the process in which a company or individual invests money into a business in exchange for equity. This type of investment is most commonly used by startups and small b...

“Think of business as a good game. Lots of competition and a minimum of rules. You keep score with money.”
—Bill Gates

It’s called “competitive landscape” for a reason: competitors are a crucial part of the terrain your company will have to navigate in order to get where you’re going. Who your competitors are, what they’re doing, how they’re doing it – these considerations will impact some of the most important decisions at your company, touching everything from pricing to messaging to marketing.

Doing a solid competitive analysis is like setting up for a game of Battleship with the divider down. When you can see where your opponent is putting their ships, you can be that much more strategic about where you’re placing your own.

For this se...