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MenuWhere should I (developer) as a single-member software company focus my time & efforts to build a current business into a real one with employee help?
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My focus is business strategy and development, I am also a geek-at-heart! There are a few things to dig into to get rolling.
With your strength in tech - tap into virtual resources or even crowdsourcing to get the work done from a marketing and sales lead perspective leaving you to focus on what you do best.
I am happy to have a call with you to discuss steps! This is a critical time for your company and your passion is evident.
I am not sure I have any silver bullets, but would be more than happy to hear a bit more about your situation and offer advice. My company was in a similar situation a few years ago....so I can at least empathize.
I don't have specific advice about your specific question but do have some thoughts on deciding when to quit / scale or try something new (i.e. Opportunity Cost)
Most individuals make these decisions daily, but don't truly understand how to evaluate.
Here's my framework.
What's the potential upside? (Ex: $100K / year) x probability (20%) = 20K in potential.
If you think about that framework apied to other ideas like a new startup or getting a job, then you can better assess the opportunity cost.
For many people, making $40K/yr vs potential of $200K at 50% chance is actually more sensible then staying where they are at - but they decide to stay.
I always look at the opportunity cost of both new ideas + risk of distracting me from executing on existing tasks/projects - hence why I say "no" more now then ever (2 new babies + growing Startup)
Hope that helps.
You are WordPress developer so I assume you have well designed and well developed website. Have you seen any change in traffic patterns on your website ?
Take a step back and try to answer "Do my potential customers know about me?" "How will they find my product?". Answering these questions may open up options for what to do next.
Finally, read up articles by Neil Patel; he is a growth hacker worth reading.
Happy to talk further.
Do not assume you know your employees’ skill level and career aspirations. Some of your employees may already have development goals in mind, but do not know how to get started or if the company will support those plans. Other employees may not realize you see potential in them or need encouragement to reach for the next step in their career. She may remain reluctant until you help her understand that those skills are required to move into sales management, her ultimate goal. By talking to employees, you can work together to figure out what role your business can play in their plans as well as what opportunities you can offer them. Readiness comes in a variety of forms, encompassing desire, skills, and experience. Keep in mind that not every employee wants to – or should – move into management, no matter how good they are in their current position. Doing versus managing are quite different skills sets and pushing an employee into a job they are not ready for can have devastating consequences.
You can read more here: https://www.insperity.com/blog/5-steps-to-creating-employee-development-plans-that-truly-work/
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
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How much equity should I ask as a CMO in a startup?
Greater risk = greater equity. How likely is this to fail or just break even? If you aren't receiving salary yet are among 4-6 non-founders with equivalent sweat investment, all of whom are lower on the totem pole than the two founders, figure out: 1) Taking into account all likely outcomes, what is the most likely outcome in terms of exit? (ex: $10MM.) Keep in mind that 90%+ of all tech startups fail (Allmand Law study), and of those that succeed 88% of M&A deals are under $100MM. Startups that exit at $1B+ are so rare they are called "unicorns"... so don't count on that, no matter how exciting it feels right now. 2) Figure out what 1% equity would give you in terms of payout for the most likely exit. For example, a $10MM exit would give you $100k for every 1% you own. 3) Decide what the chance is that the startup will fail / go bankrupt / get stuck at a $1MM business with no exit in sight. (According to Allman Law's study, 10% stay in business - and far fewer than that actually exit). 4) Multiply the % chance of success by the likely outcome if successful. Now each 1% of equity is worth $10k. You could get lucky and have it be worth millions, or it could be worth nothing. (With the hypothetical numbers I'm giving here, including the odds, you are working for $10k per 1% equity received if the most likely exit is $10MM and the % chance of failure is 90%.) 5) Come up with a vesting path. Commit to one year, get X equity at the end. If you were salaried, the path would be more like 4 years, but since it's free you deserve instant equity as long as you follow through for a reasonable period of time. 6) Assuming you get agreement in writing from the founders, what amount of $ would you take in exchange for 12 months of free work? Now multiply that by 2 to factor in the fact that the payout would be far down the road, and that there is risk. 7) What percentage share of equity would you need in order to equal that payout on exit? 8) Multiply that number by 2-3x to account for likely dilution over time. 9) If the founders aren't willing to give you that much equity in writing, then it's time to move on! If they are, then decide whether you're willing to take the risk in exchange for potentially big rewards (and of course, potentially empty pockets). It's a fascinating topic with a lot of speculation involved, so if you want to discuss in depth, set up a call with me on Clarity. Hope that helps!RD
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My startup just failed. What could I start to "immediately" generate $1,000/mo?
The quickest path to cash is almost always consulting. Be very specific about what it is you can offer. Don't just offer "business consulting". Find a niche and serve it. Reach out to your network, including friends and family and ask if they need or know of anyone who might want to hear about what your consulting has to offer. That will be way faster than trying to go at it from scratch or cold calling. If you call 100 people in your network this week, you will have a consulting gig within 3 weeks. Good luck, and let me know if you'd like advice on entering a digital marketing/lead generation consulting niche. I've grown from zero to $8,000 of monthly recurring payments in the last 40 days! DaveDR
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