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

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

Ep. 193 – The Talent Jam Is Back

TalentJam-AVL-LogoTM-FBIn 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

Ep. 192 – The Pros and Cons of Equity-Based Funding

SIBP-Blog-NEW-5Is 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

Ep. 191 – Seed Funding: Angel Investment Criteria, Part 8

SIBP-Blog-NEW-3From 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

Ep. 190 – Seed Funding: Angel Investment Criteria, Part 7

SIBP-Blog-NEW-4If there’s one thing an angel investor wants to know before they even consider trading their money for a piece of your business, it’s how you plan to turn that investment into value. This means having a solid plan in place for making the best use of any funds you raise, and knowing the difference between productive uses of funding and needlessly burning through cash. They want to see the maximum return on their investment, and that means you need to have a great plan for turning a small pile of money into a big one.

In this episode, host and business coach Tom Ryan continues his discussion of the basics of seed round funding. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading

Ep. 189 – Seed Funding: Angel Investment Criteria, Part 6

SIBP-Blog-NEW-2Startup valuations involve a special kind of calculus for everyone involved, and it’s not uncommon for first-time founders to be overwhelmed. Tiny differences in an investment proposal from an angel investor can have a huge impact — often millions of dollars or huge percentage differences in total equity — in the final agreement. Even when the investment cash is taken into consideration during the valuation can easily turn a seemingly fair deal into a non-starter.

In this episode, host and business coach Tom Ryan talks about the nuances of “pre-money” and “post-money” valuations, and how they can ultimately change the entire nature of an investment relationship. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading

Ep. 188 – Seed Funding: Angel Investment Criteria, Part 5

SIBP-Blog-NEW-1Angel funds and other early-stage investors know the odds. For every one company they back that is a breakout success, five or six others will most likely fail, taking their investment cash with them. Two or three other companies they invest in may break even. If those angel groups want to see a profit when it’s time for them to exit, the companies they invest in need to be primed for serious growth.

In today’s episode, host and business coach Tom Ryan explains the investor’s side of the equity agreement, and why their business model means focusing on high-growth startups with plenty of potential buyers in the wings. Tom is joined by guest co-host and producer Natalie Pyles. Continue reading

Ep. 187 – Seed Funding: Angel Investment Criteria, Part 4

SIBP-Blog-NEW-5Startups have a limited shelf life. From the inception of the idea to the moment it becomes irrelevant, there’s a countdown. For seed-stage investors, this means that any startup worth investing in needs to have a solid plan in place to completely exploit their market advantages, and be willing to do whatever it takes to grow as fast as possible before competitors can find a foothold.

In today’s episode, host and business coach Tom Ryan talks explains why companies with high growth potential take priority for most investors, and why it’s absolutely vital for startups to lock down their advantages. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading

Ep. 186 – Seed Funding: Angel Investment Criteria, Part 3

SIBP-Blog-NEW-4When you’re pitching your startup to investors, the last thing they want to see is a “solopreneur.” Great companies aren’t built by lone-wolf idea people, they’re built by teams. The more robust and experienced your team, the better the chance that a strategic investment will result in a thriving business and a great return.

In today’s episode of the Success In Business podcast, host and business coach Tom Ryan talks about building the kind of startup team that investors want to see. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading

Ep. 185 – Seed Funding: Angel Investment Criteria, Part 2

SIBP-Blog-NEW-3Most angel investors aren’t looking to wade hip-deep into the projects they support. It’s not the best use of their time, and it’s a needless distraction from the business of investment. What a professional investor is looking for is a founder with that perfect mixture of enthusiasm and experience, and a motivated team behind them that can turn a great idea into a great business.

In today’s episode, host and business coach Tom Ryan talks about what it means to have a great team, and why great founders often matter more than great business ideas. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading