Average and Marginal costs are both important concepts. However, pricing your product according to these costs mechanisms can lead to dramatically different results. Understanding what this means for your business is critical to your success.
How to Build a Winning Team
How to Create a Strategy, Vision and Mission
How to Create an Advisory Board
How to Get Funding
How to Improve Your Company
How to Improve Your Pitch
How to Start Your Company
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Startup Accelerator Spotlight
Startup Investor Spotlight
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“The single biggest problem in communication is the illusion that it has taken place.”– George Bernard Shaw
Advisory Board compensation is an important consideration. How much is right? Does this change over time? Is there a vesting period?
Ultimately, the fit is as important to the advisory board candidate as it is to the entrepreneurs and the company. If it is learned that the fit doesn’t exist after the advisor has been on-boarded, it will likely turn out to be a waste of time for everyone.
I am amazed at the number of privately held business partnerships that do not have a formal buy-sell agreement in place. This one is absolutely essential. When forming your business, you chose your partner; make sure you have some rights when it comes to who your partner will be as time goes on too.
Board resolutions are numerous issues to address as one creates and establishes a new company.
We often think of business as a special function. In reality, it operates in much the same way normal things around us do. In fact, the concepts behind Newton’s Three Laws of Motion are as applicable to business tips as they are to physics.
Efficiency, the ability to accomplish a job with a minimum expenditure of time and effort, is one of the most important ingredients to business success. Startup companies must be ruthless in this pursuit.
Many founders don’t consider this one until it’s too late. The excitement and adrenaline of getting started leads to a “kumbaya atmosphere” where all things are equal. This spills over into salaries. Sooner or later, the amount of time, effort and energy expended by the partners is no longer equal, but their salaries are. Tensions begin to rise.
Greek historian Herodotus once said, “Great deeds are usually wrought at great risk.” The great company you are building will not come easy. It may require you to go “all in” (and take a prudent risk) to make it work. But what does that mean and when do you undertake such a risky action?