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

Posted on March 1, 2016 by producer

Most 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 →

Ep. 184 – Seed Funding: Angel Investment Criteria, Part 1

Posted on February 29, 2016 by producer

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Angel investors generally have a focus. Sometimes their focus is on a geographical area or customer demographic, other times it’s on a market niche or specific industry. Some groups even go as far as distinguishing between true startups and other early stage companies. Because these groups don’t want to waste time talking to founders whose businesses don’t fit within the scope of their interests, they almost always make this information easy to find. This means the first step for finding angel investment money is often finding the right angel group to talk to.

In today’s episode, host and business coach Tom Ryan talks about investor criteria using a group that’s close to home, local angel investment group Asheville Angels. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading →

Tom Ryan’s Four Ps of Sales: Performance in the Sales Cycle, as Demonstrated by Kickass Cat Sweaters

Posted on February 26, 2016 by Tom Ryan

Even cats appreciate a high-quality cat-hair sweater. (Image: https://www.flickr.com/photos/thetopaz/)

You’ve figured out your average sale. You’ve nailed down your expenses. You’ve worked out your gross margin, operating expenses and net profit. But there’s one piece left to go before you have a clear picture of your sales performance: How long does it actually take to make an average sale?

This is called the “sales cycle,” and it measures the time span between making the first meaningful contact with a prospect to a finalized sale. The sales cycle provides you with that final piece of information you need to fully understand your sales performance, allowing you to create accurate sales predictions into the future. This is especially useful for companies that haven’t yet reached a profitable stage, allowing them to accurately estimate their capital needs as they approach profitability.

Let’s take a look at how this works by way of example. On the Success In Business Podcast, co-host Jason Pyles and I have created a purely fictional company called “Kickass Cat Sweaters.” Continue reading →

Ep. 183 – Seed Funding 101: Equity Valuation Example

Posted on February 26, 2016 by producer

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For angel investors and small venture capital firms, investing is about hitting a very specific target. They want to invest a carefully weighed amount in a startup that has the potential for very high growth. They also want to know that when it’s time for them to take their money back out of the business, there will be plenty of interested buyers. If your startup doesn’t fit within that strike zone, odds are that these kinds of investors will politely pass on the opportunity to fund you.

In today’s episode, host and business coach Tom Ryan talks about the angel investor’s checklist, and the priorities from their side of the table. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading →

Tom Ryan’s Four Ps of Sales: Performance Fundamentals

Posted on February 25, 2016 by Tom Ryan

The second “P” in my “Four Ps of Sales” is “Performance.” In a sales context, performance represents the number of sales you need to make in order to meet your goals. To accurately gauge your performance, you first need to know what those sales goals are.

This means getting a firm grip on your expenses and your revenue needs. A surprising number of people find this part of the sales process intimidating, as it involves a little number crunching. It’s not that this math is complex — it’s pretty basic stuff, actually — but any time you have to break out a calculator, a certain percentage of people’s eyes start to glaze over.

It’s not always easy to make financial projections seem lively. You might not be on the edge of your seat as you read this post, but I’ll do my best to keep this part as painless as possible. Continue reading →

Ep. 182 – Seed Funding 101: How Equity Valuations Work, Part 3

Posted on February 25, 2016 by producer

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If you have an early-stage company that is looking for seed funding, you’re going to be talking to a lot of investors. Understand what those venture capital firms and angel investors need to see from you, and your odds of reaching a funding deal increase dramatically. Fail to find that alignment, and getting the financial backing you’re looking for will be virtually impossible. Thankfully, you always have at least one thing in common: Money.

In this episode, host and business coach Tom Ryan continues his explanation of the valuation process, shining a light on it from the investor’s point of view. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading →

Ep. 181 – Seed Funding 101: How Equity Valuations Work Part 2

Posted on February 24, 2016 by producer

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If there’s one thing both keen-eyed investors and funding-hungry startups have in common, it’s their interest in making money. It’s this common interest that allows a company that is little more than an idea to find the seed capital needed to become a real-world business. But how does this process of discovering the value of a yet-to-exist business actually work?

In today’s episode, host and business coach Tom Ryan explains the alignment of interests between people with money and the entrepreneurs who need cash. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading →

Ep. 180 – Seed Funding 101: How Equity Valuations Work Part 1

Posted on February 23, 2016 by producer

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When you’re talking about equity-based funding, valuations are where the rubber meets the road. In order to buy a piece of a business, you first have to establish an overall value for that business. That can be tricky, because equity-based valuations aren’t always as scientific as you might expect. How can a business that has not yet done much of anything have a measurable value?

In today’s episode, host and business coach Tom Ryan explains the basic concepts behind equity valuations. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading →

Tom Ryan’s Four Ps of Sales: What’s Required To Make A Sale?

Posted on February 22, 2016 by Tom Ryan

One of my stranger pastimes is to take a look at all the different sales training methodologies out there. I consume sales books, breaking them down chapter by chapter to glean any new insights I can. I’ve also been through most of the major sales programs out there, and I’ve attended countless workshops and seminars on the topic. It’s safe to say that I’m a lifelong student of sales.

One of the biggest criticisms I have of what’s often called “sales training” is that it’s not focused on the fundamentals. Instead, they focus on the “tips and tricks” of sales technique. Some of these things can be useful from time to time, but without a firm grounding in the core principals of sales, they tend to come across as pretty desperate.

You’ve probably encountered this “magic bean” approach to sales. There are a lot of people selling the idea that you can make millions of dollars by “just asking this one simple question.” That’s utter B.S., as any experienced salesperson will tell you. If you want to see real results, you have do to the real work of sales. Continue reading →

Ep. 179 – Seed Funding 101: Equity Basics

Posted on February 22, 2016 by producer

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Equity-based finance is the most common instrument used in seed-stage funding. It’s also one of the trickiest kinds of funding, because equity is all about ownership. Selling equity may be a relatively easy way raise some much-needed funds, but it comes at a cost. When someone buys a piece of your company, they also gain a legally enforceable right to have a say in the direction of the business. A great business can suffer, or even fail, due to a bad equity partnership.

In today’s episode, host and business coach Tom Ryan further explores the topic of seed funding, focusing on the major considerations for equity-based fundraising. As always, Tom is joined by co-host and producer Jason Pyles. Continue reading →