Startups Why an Exit Strategy is a Critical Component of Your Business Plan |
- Why an Exit Strategy is a Critical Component of Your Business Plan
- Why is Non-Dilutable Equity universally rejected?
- Looking for advise on my first startup
- Best Corporation Structure With High Initial Capital Requirements?
- How can I work as a developer in the US if I'm a Mexican without a degree?
- Very early stages- ways to seek and find developers to get started on proof-of-concept code (sans payroll)?
| Why an Exit Strategy is a Critical Component of Your Business Plan Posted: 02 Aug 2018 07:35 AM PDT When starting a business, ending it is usually the furthest thing from your mind. Passion and love for what you do define entrepreneurship, and turning your idea into a successful company has been hard enough, imagining saying goodbye to it is even harder. But this is really just a bad approach to the planning of your business. You need to have a good answer to the question: what's your exit strategy? And research suggests most people haven't figured out their answer. A study conducted by Securian Financial Group suggests that while 50 percent of small business owners do not have plans to sell their business, 72 percent have no exit planning strategy at all. But no matter your intentions, having an exit strategy is a key component of your business plan and to the way, you approach the growth of your company. Here's why: Plan with the end in mind Some of you will recognize this from Stephen Covey's book The Seven Habits of Highly Effective People, and it is just as relevant in business planning as in any other aspect of life. Where am I going? Where do I want to be? These are essential questions to answer in the planning process. After all, how can you possibly grow a business without having some sort of specific goal? Of course, most of us start businesses to make lots of money doing something we love. And while this is a worthy goal, it isn't really specific enough to serve as a valuable tool for strategy development and planning. But it's also important to be realistic. Many startup owners will dream of their business making it to an Initial Public Offering where they cash in for millions. This rarely happens though, and by planning for it, you are setting yourself up for a rude awakening down the road. Unfortunately, the most common exit strategy for small businesses is failure. A study from Statistics Brain indicates that 25 percent of small businesses fail within the first year, and more than 70 percent close their doors within ten years. So, to prevent yourself from becoming a statistic, it is important to begin planning right away. Chances are you won't be heading towards an IPO, so then what do you need to do to turn your business into an attractive investment for a larger company? This isn't to suggest you should act timidly—often times risk taking is the strategy for success—but you do need to be realistic. Taking steps to plan how you'll walk away helps make sure you do it on your terms, not someone else's. Read full article here : https://www.marktechpost.com/2018/08/01/why-an-exit-strategy-is-a-critical-component-of-your-business-plan/ [link] [comments]  |
| Why is Non-Dilutable Equity universally rejected? Posted: 02 Aug 2018 08:40 PM PDT I understand the math behind what happens if there are non-dilutable shares on the cap table. The non-diluted folks quickly end up having just as much equity if not more than the founders after a couple rounds of financing. I also understand the detriments to team morale when all equity is NOT created equal... Are there any reasons outside of venture capital and team morale concerns as to why a company should never offer non-dilutable equity? What if a company planned on never raising outside capital and just planned to bootstrap? Is there EVER a reason for entering into a non-dilutable equity deal? [link] [comments]  |
| Looking for advise on my first startup Posted: 02 Aug 2018 10:27 PM PDT Myself and 2 friends(all 18 years old) started a startup that is like an uber for jobs App. We all loved the idea and were extremely passionate about starting a small company. We all agreed on our roles and purpose in the startup and got to work. But all of a sudden their is a power struggle to become CEO. Me and another partner agreed I should be leader since the other guy has been leader for 6 weeks and not much has been completed. Everything is falling apart because the original leader refuses to take command from me. I don't know what to do because 2/3 are on board but 1/3 refuses to take commands from me. Should I have a talk with him and hope for him to come around, or just replace him? Thank you! [link] [comments]  |
| Best Corporation Structure With High Initial Capital Requirements? Posted: 02 Aug 2018 01:24 PM PDT I'm looking to start a company in a space where initial costs are high. I will be doing a self-funded MVP version first, but that should be complete in 2-3 months and then I will need to raise capital to achieve my next business goal. I already have friends and colleagues who are interested in investing. With this in mind, I've been doing a ton of research into corporation structure but I'm still a bit confused. I have a meeting with my local SCORE chapter and I will likely pay an attorney, but I wanted to get some initial thoughts/feedback here. [link] [comments]  |
| How can I work as a developer in the US if I'm a Mexican without a degree? Posted: 02 Aug 2018 02:11 PM PDT I don't know if this is the right place to ask this, but I'm currently looking forward to land a job at the US as a developer, and I think working at an startup is my best option. I'm a senior web developer, and have worked at a couple of startups here at my hometown in Mexico. I was recently rejected by Amazon as they told me they require candidates to have a degree. I don't know if this a requirement from the company or for getting a visa. If I don't have a bachelor's degree is it still possible to work at a company at the US? I know it is possible by getting a position that lets me work remotely. But I would like to relocate to the US. [link] [comments]  |
| Posted: 02 Aug 2018 11:41 AM PDT I'm an R&D developer by trade, and I specialize in hardware and basic firmware. My degree is in physics, but this project will be a set of consumer electronics tools that will be a ton of fun and offer a very unique user experience. I'm going to need a front-end developer to help me realize my big idea, and it will be important that I develop a great working relationship with this person since the look and user experience will really make or break this thing. I have most of my ideas recorded, and will be working on a patent pending at the same time I'm developing prototypes of the system. I won't want to seek funding until I'm protected and have several prototypes to display, so I think I'll need to find someone who shares the vision (risk) and can work unpaid for a year or more. Is this something people do? Does it usually work out as long as the product gets sold or an exit strategy is realized that compensates each partner? What are the pitfalls of partnering like this? Are there agreements that need to be made? What are the legal precautions I can take? And most importantly, how do I go about finding a stranger like this with the skills I need to realize my project, but who is capable and willing to work pro-bono? A student developer might want to get in on the ground floor of any project, but then again they might not yet have the skills. Any comments or advice would be greatly appreciated. Edit: I'm not sure if I made this clear, but the partner I seek could become a business partner or co-founder. [link] [comments]  |
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