When you work in a startup, you aren’t a moron. You know that you aren’t profitable so live off the proverbial investor teet. If the CEO doesn’t close new funding you’re all out on your rear. Staff wants to know if they are going to have a job in a few months. So put yourself in their position. What would …
Why do companies use cash to finance acquisitions?
The cynical answer is that they don’t want to return the cash to investors as a dividend or share buyback and they don’t know how to spend it to grow organically. Why not just spend some of the cash sitting on the balance sheet? The financial nerd answer comes down to what they see as their cost of capital. If …
How can one easily patent an idea (product: name, concept, idea etc.)?
Let me give you the no BS founder perspective. You’ve a total misunderstanding of how the world works. Don’t spend time on any of this, especially till you understand the commercial aspect. Patents are total bs. They’re only as defensible as your legal budget. Say I infringe on your patent, what are you going to do now? Cry? Boo hoo. …
Is it a good idea to use gimmicks in a business pitch? Why or why not?
No. Don’t do anything cringy. Investors want to invest in a real business that logically makes sense. I teach my clients to allude to the things they want to say. If you want to say “I know the industry” you allude to it by telling an industry narrative that illustrates your insights… investors sense you know. You don’t say “we’re …
How do I construct an investment contract for a sole proprietorship myself?
You hire a lawyer. That’s the end of the conversation. I’ve seen founders do too many dumb things to save money. When it comes to legal matters, it is NOT worth saving pennies to lose pounds. I know you hate to pay lawyers, but the downside is disproportionate. I’m not a lawyer so I don’t care… I’m just being honest. …