Author Archives: producer

Ep. 203 – What You Must Know Before You Work With a Startup, Part 2

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-3By their very nature, startups are risky. For every handful that succeed, breaking out on their own terms or surviving until an exit deal, dozens will run out of cash and go under. When you’re thinking about leaving a steady, reliable corporate job for a position in the high-risk, high-reward startup world, you need to know exactly what you’re getting into. That means turning the tables during the job interview, and getting some hard facts about how the company is doing financially.

In this week’s episode, host and business coach Tom talks about the important questions about finances and company culture that every startup job candidate needs to be ready to ask. As always, Tom is joined by co-host and producer Jason Pyles.

• Show opening, and recap of the last show

• When startups pull talent from the corporate world (1:30)

• Recap of steps for determining startup fit (4:00)

• Financial security in early-stage companies is never guaranteed (7:00)

• Questions for determining the startup’s fit for your needs (9:00)

  • Are you cash-flow positive today?
  • How long have you been cash-flow positive?
  • How will my compensation effect your cash flow?
  • How much funding have you raised, and who did it come from?
  • How much cash do you have on hand today?
  • What is your current cash burn?
  • What are yours plans for managing a financial dry spell?

• Why these questions matter, why they feel uncomfortable, and why it’s absolutely vital to get a real answer to them from the startup (23:30)

• “If you’re really uncomfortable asking any of these questions … don’t do this, because it’s going to tear you up.” (26:30)

• The real risks of leaving an established company for a startup (27:30)

• Why financial questions are fair-game questions to ask (28:30)

• Other big questions to ask the startup (30:00)

  1. What are the opportunities for compensation and financial gain beyond salary? (Stock options, earned equity)
  2. How high of a priority do you place on providing freedom and flexibility to employees?
  3. How do you keep your teams intellectually and professionally challenged?

• Putting it all together, and determining your fit with the startup (32:00)

• Looking for the obvious mis-alignments (33:00)

• Why good startups want to be asked thoughtful questions by job candidates (34:30)

• Sign off, and how to contact the show

• Call for horror-story hiring questions from listeners

Ep. 202 – What You Must Know Before You Work With a Startup, Part 1

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-2Working at a big corporation is always a tradeoff. A large company can do more than simply provide a stable paycheck, it can promise a degree of security and consistency. When the opportunity comes along to roll the dice with your career and take a job with a startup, it’s not always easy to see the tradeoffs.The freedom, flexibility and opportunities that come with working for a smaller, leaner company come with an inherent risk of pivoting, layoffs, long-hours, endless stress and complete failure should things go badly for the business.

In this week’s episode, host and business coach Tom talks about a recent experience guiding his corporate lifestyle-loving friend through the promise and perils of taking a job with a startup. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading →

Ep. 201 – Seed Funding 101: What is an SBA Loan?

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-2One of the most powerful funding tools available to first-time entrepreneurs and early stage companies is debt-based financing. Without a great credit history, however, getting a commercial loan from a traditional lender isn’t always the easiest thing to do. If only there was some way a startup could bring in a third-party to help secure that loan, much like getting a teenager getting their parent to co-sign on a car loan. For many entrepreneurs, the “ultimate co-signer” turns out to be the federal government in the form of the U.S. Small Business Administration (SBA).

In today’s podcast, host and business coach Tom Ryan provides an overview of the SBA’s loan program. Learn how SBA loans work, what the eligibility requirements are, how the loans can be used, and how much money they can provide. Continue reading →

Ep. 200 – Celebrating Two Bills and SIBP Goes Weekly

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-B-2Good morning, rise and shine Success in Business Podcast listeners! We’ve finally reached a massive new milestone with our 200th episode! This special episode brings a little reflection on the series thus far, including some hearty thanks to both the listeners and the people behind the scenes at the Success In Business Podcast. As we move towards episode 300, Tom is even more committed to helping entrepreneurs achieve their goals.

To help as many entrepreneurs as possible the Success in Business Podcast is converting to a weekly show. Join us every Monday for a longer, more in-depth format filled with great insights and immediately actionable ideas for anyone seeking to find success in business. Continue reading →

Ep. 199 – Seed Funding 101: Microloans

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-2Getting a loan from a conventional lender can be tricky for an early-stage company. Without a long enough operating history or a significant amount of assets to use as collateral, a banker simply might not see your startup as a very good risk. But that doesn’t mean you don’t have options. For a business that needs just a little capital to grease the wheels and get things moving — perhaps $15,000 or so — a “microloan” might just be the right option.

In today’s episode, host and business coach Tom Ryan talks about the pros and cons of microloans, and some great sources (such as the SBA) to start the process. As always, Tom is joined by producer and co-host Jason Pyles. Continue reading →

Ep. 198 – Seed Funding 101: Debt Financing Examples

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-1One of the often overlooked options for small-business and startup financing is getting a loan from a friend or family member. Not only can this kind of person-to-person loan be easier to get, but it’s also more intuitive for both parties than trying to work out an equity-based deal. Getting your Aunt Sally to loan you $50,000 just isn’t going to be as complex as trying to create a meaningful valuation for your startup for her to buy equity in. But just because they love you doesn’t mean that friends and family loans should be taken any less seriously. Get this kind of deal wrong, and your family holidays are going to become pretty awkward.

In today’s episode, host and business coach Tom Ryan explores a simple example of a friends and family loan in action. As always, Tom is joined by producer and co-host Jason Pyles. Continue reading →

Ep. 197 – Seed Funding 101: Debt Financing Overview

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-5At 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 →

Ep. 196 – Seed Funding 101: Equity Is Expensive

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-4Given 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 →

Ep. 195 – Seed Funding 101: Your Personal Risk With Debt

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-3When 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 →

Ep. 194 – Seed Funding 101: Your Personal Risk With Equity

Posted on by

Podcast: Play in new window | Download

SIBP-Blog-NEW-2As 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 →