There’s a lot of wisdom that can come from a really bad breakup. Given a little time and some self-reflection, you can gain some pretty big insights into what not to do next time. While I’ve had my share of bad romantic breakups, the worst — and ultimately most insightful — breakup I ever had was as the co-founder of a startup.
Anyone thinking of starting a business with friends should hear this cautionary tale. Continue reading
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At some point during the life of your business, you will need to expand. This is just as true for small-scale lifestyle businesses as it is for a high-growth startup. To finance that growth, you have two basic financing options: equity and debt. While equity can make a lot of sense for an early stage company, it’s not always the best option for a more established business. In those cases, debt might be the right tool for the job.
In today’s episode of the Success In Business Podcast, host and business coach Tom Ryan begins an overview of the basics of debt-based financing. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading
If you’ve done your homework as we’ve talked about the previous “Four Ps of Sales,” you likely have all the information you need to determine the what skills you need as you grow your sales staff. You should also have a good idea what a reasonable level of compensation will be for the right salesperson. What those skills and compensation requirements will be completely depend on your startup’s needs.
Let’s say you’ve gone through each step in the “Four Ps,” and as a result you’ve created a clear sketch of your company’s sales needs. You’ve already done the heavy lifting of figuring out your sales process, and you’ve worked out the optimizations that allow for great sales performance. You’ve looked at your logistical needs, such as inside versus outside sales. You’ve even determined how much you can afford to pay for sales. Continue reading
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Given the seemingly lower risks and potential benefits of equity, you might wonder why it isn’t always the preferred instrument for early-stage funding. There’s one simple reason: Equity is expensive. Every percentage point you give up in an equity deal takes a huge bite out of your profit when it’s time to exit. For some businesses, taking on debt to finance growth might make better long-term sense.
In this episode, host and business coach Tom Ryan talks about the bigger picture of debt and equity as fundraising instruments. As always, Tom is joined by producer and co-host Jason Pyles. Continue reading
It’s no accident that the last “P” in my “Four Ps of Sales” is “People.” To see the right results from your sales, you need to have the right process in place first. From there, you need to figure out your optimal sales performance, and then use that information to establish what you can afford to pay for sales. Only after you have all that in place can you start finding the right people to plug into the process.
Salespeople don’t define your sales process. They’re a resource within the overall sales solution. They’re a critical resource, no doubt, but they need to be a part of a larger, highly organized and optimized system. Continue reading
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When an investor gives you a million dollars, they now have a million reasons to be upset if the business fails. It’s not surprising that many investors will look for a way to get as much of that money back as they can, particularly if they think you’ve been negligent with their investment. If you don’t want to get sued, you might be wondering about the alternatives to equity-based funding deals, such as traditional business loans. What happens to the business debt when the business fails?
In today’s episode, host and business coach Tom Ryan continues his examination of personal risk in startup funding instruments. As always, Tom is joined by producer and co-host Jason Pyles. Continue reading
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As a startup founder, you really only have one job: Do not run out of cash. When the cash is gone, the business fails, your hard work evaporates, and your investors lose their money. For a first-time entrepreneur, what happens next isn’t always so clear. Just how much of that investment cash are you on the hook for, and what happens when an investor thinks you were negligent?
In today’s episode of the Success In Business Podcast, host and business coach Tom Ryan takes a look at the personal risks of a startup equity arrangement. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading
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In this special edition of the Success In Business Podcast, host and business coach Tom Ryan is pumped. Why? The Talent Jam is back! This one-of-a-kind event connects people with talent to the businesses and projects that need them. It’s a networking event mixed with a fast-pitch contest, with plenty of handcrafted local microbrew beer to go around.
Interested? Just listen to this podcast for all the details. The Talent Jam takes place on Monday, March 21, 2016, at the ISIS Restaurant & Music Hall in Asheville, NC. $5 to attend, and $25 to pitch, with all proceeds going to Green Side Up Foundation and Hands On Continue reading
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Is equity-based funding really the best option for financing the growth of a startup? For many early-stage companies, trading in a percentage of the ownership for some much-needed cash makes a lot of sense. In other situations, however, the limitations and long-term risks outweigh the rewards. As with so many things in business, finding the “right” answer is really a matter of balancing options and understanding the greater context.
In this episode of the Success In Business Podcast, host and business coach Tom Ryan talks about some of the hidden disadvantages of equity-based finance. As always, Tom is joined by producer and co-host Jason Pyles. Continue reading
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From an angel investor’s perspective, a startup is only worth investing in if there’s a good chance it will scale rapidly, steadily increasing in value and catching the attention of larger companies and big investors with very deep pockets. When the business has gained enough value to be sold at a handsome profit, it’s time for a “liquidity event,” allowing the angel investor to cash out their equity.
In today’s episode, host and business coach Tom Ryan talks about the importance of an easy “exit” for the angel investors’ business model. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading