Loading...
Answers
MenuWhat are the entry barriers for C2C consulting like Clarity?
I am thinking about something similar to Clarity..professional C2C business consulting
Answers
Hi!
For starters I don't think clarity was meant really as a C2C (customer to customer) consulting platform. I'm pretty sure it was meant to be only for experts in a topic to provide expert advice to non experts. Now we have a ton of non experts providing their opinions.
Some are great while some are just wrong or provide no real guidance.
With that said, this issue leads me to my response to you. With any consulting service what you need to focus on is validation from either your peers or clients you have successfully helped. I for example spent about 2 years building my reputation through local circles in Arizona, California and Texas by helping entrepreneurs, non profits and even coaches grow their businesses and in cases build them. Once your reputation is there you can begin crafting a brand for yourself. A logo is not a brand tho, neither is a website. But your name value. How much leverage does your name have in your local network?
For most consultants this is when they see their business really take off. If you're planning a third party platform like Clarity, where you don't do the coaching this would simply require a startup's take on growing it, marketing it, funding it, and most importantly building a community. Each of this would take significant effort in explaining or laying out for you so it would be best you give one of us a call or look for a local mentor that would meet with you on and off for guidance and to hold you responsible as you move forward.
Humberto Valle
Unthink Strategy
If I was going to start-up my own Clarity website, I would specialize. For ex. a legal website that's focused on that subject matter. When I promoted an attorney on the web I was able to get him from zero to $65,000 a month in billing in less than 4 months which usually takes 10 years. I knew nothing about law but a lot about selling and promoting so I would say whatever field you pick specialize and in time you could expand into everything but I certain wouldn't try to start out that way, hope this helps...Ken Queen
Main barrier(often not thought of as a barrier) is lack of demand. People aren't as willing to pay for advice since the prevalence of content on the web(quality notwithstanding).
The path to success in this arena is in transparency and action. Can you provide transparency on both pricing and the solution framework that is to be implemented? Timeline and full details of capital requirements to accomplish the goal?
This is what is missing from most consulting. Too much friction and not enough visibility we have come to enjoy from most digital product/service offerings. When I want to hire an email client, I know exactly how much Microsoft Outlook will cost and what features it has. There are often more complexities to consulting engagements but the customer expectations are the same.
Related Questions
-
What is the best way to write a cover letter to an early-stage startup?
Better than a cover letter is to actually proactively DO something to help them. It'll show them not only that you've researched them, but you're passionate about the startup and worth bringing on. A man got a job at Square early on for just making them a marketing video on his own (back before they had one). Since you're a web designer, design a stellar 1-pager that's targeting their message to a particular niche. Something they could use on social media or something. If they're like most startups, they're not interested in reading cover letters. They're interested in passionate individuals who can add value to the organization.AS
-
Business partner I want to bring on will invest more money than me, but will be less involved in operations, how do I split the company?
Cash money should be treated separately than sweat equity. There are practical reasons for this namely that sweat equity should always be granted in conjunction with a vesting agreement (standard in tech is 4 year but in other sectors, 3 is often the standard) but that cash money should not be subjected to vesting. Typically, if you're at the idea stage, the valuation of the actual cash going in (again for software) is anywhere between $300,000 and $1m (pre-money). If you're operating in any other type of industry, valuations would be much lower at the earliest stage. The best way to calculate sweat equity (in my experience) is to use this calculator as a guide: http://foundrs.com/. If you message me privately (via Clarity) with some more info on what the business is, I can tell you whether I would be helpful to you in a call.TW
-
As a startup, is it better to find a way to pay for services (i.e. design) or trade equity for it?
Before I get to your question, let me give you a tip: always aim settle questions of payment before the work happens. It is ten times easier to agree on a price beforehand, and having done that doesn't stop you from changing it by mutual agreement later. The problem with paying cash is pretty obvious: you don't have a lot of it. The problems with paying equity are subtler. The first one is that early-stage equity is extremely hard to value. A second is that equity transactions require a lot of paperwork. Third is that entrepreneurs tend to value their equity much higher than other people would; if not, they wouldn't be starting the company. And fourth, people like designers are rarely expert in valuing businesses or the customs of of startup equity valuation. In the past, I've both given and received equity compensation, and it's a lot more of a pain than I expected. In the future, what I think I'd try is convertible debt. That is, I'd talk with the designer and agree on a fair-market wage. E.g. 100 hours x $100/hr = $10k. The next time we take investment, the $10k turns into stock at whatever price we agree with our investors, plus a discount because he was in before the investors. Note, though, that this will increase your legal costs and your deal complexity, so I'd personally only do this for a pretty significant amount of work. And I'd only do it for somebody I trusted and respected enough to have them around for the life of my business.WP
-
How much equity should a CPO receive when joining a Series A startup that's been around for 2-3 years?
Hi There are various 'models' that you can use to estimate how many shares/percentages your new partner should get. These include (a) his/her investment in time and/or money, (b) the current + potential value of the company, (c) the time and/or money that you as the original founder already put in and various other models. That said, at the end of the day, it's all about value and psychology (both side's feelings). Bottom line: 1. It all really depends on how much value they are giving you (not only financial, sometimes even just moral support goes a long way). Some founder's 'should' get 5%, some should get 50% or more. 2. Ask the potential partner how much shares they want (BEFORE you name a number). 3. Have an open conversation with them in regards to each of your expectations. 4. Use a vesting (or preferably reverse vesting) mechanism - meaning that the founder receives his shares gradually, based on the time that goes by (during which he fulfills his obligations) and/or milestones reached. 5. If you want a mathematical method: calculate the value of each 1% of the shares (based on the last investment round), check how much an average CPO earns per month/year, and then you can calculate what % he/she should get for the 2-3 years they should put in. I've successfully helped over 350 entrepreneurs, startups and businesses, and I would be happy to help you. After scheduling a call, please send me some background information so that I can prepare in advance - thus giving you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/assafben-davidAB
-
What happens to a convertible note if the company fails?
Convertible notes are by no means "earned." They are often easier to raise for early-stage companies who don't want to or can't raise an equity round. Equity rounds almost always require a simultaneous close of either the whole round or a defined "first close" representing a significant share of the raised amount. Where there are many participants in the round comprised mostly of small seed funds and/or angel investors, shepherding everyone to a closing date can be very difficult. If a company raises money on a note and the company fails, the investors are creditors, getting money back prior to any shareholder and any creditor that doesn't have security or statutory preference. In almost every case, convertible note holders in these situations would be lucky to get pennies back on the dollar. It would be highly unusual of / unheard of for a convertible note to come with personal guarantees. Happy to talk to you about the particulars of your situation and explain more to you based on what you're wanting to know.TW
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.