12) What are the indicators of an expert?
- Going from bullshit product to providers to product to SaaS product. (Corollary: The reverse is beginner hour.)
- Chopping prices day by day.
- Promoting day by day, each minute.
- When you may have a billion in revenues, staying centered. When you may have zero revenues, staying unfocused and developing with new concepts day by day.
- Saying “no” to people who find themselves apparent losers.
- Saying “sure” to any assembly in any respect with somebody who’s an apparent winner.
- Understanding the best way to distinguish between winners and losers (which is the topic of a complete different put up, however in your intestine, you recognize – belief me).
13) What ought to the CEO’s wage be?
Not more than 2x your lowest worker in case you are not worthwhile. This even assumes you’re funded. In case you are not funded, your wage ought to be zero till your revenues will pay your wage final.
Essential rule: The CEO’s wage is the final expense paid in each enterprise.
14) When ought to I’ve intercourse with an worker?
Whenever you love her and the sensation is mutual.
15) Ought to I ever fear in regards to the information or the financial system?
Completely not. The most effective companies are began in horrible economies.
16) What occurred to all of my pals?
You don’t have any extra pals.
17) Ought to I spin off this unrelated concept right into a separate enterprise?
No. Make one enterprise nice. Throw every thing in it. Do DBAs to determine completely different concepts.
18) I made a mistake. Ought to I inform the shopper?
Sure. Inform him every thing that occurred. You’re his accomplice. Not the man that hides issues after which lies about them.
19) I undercharged. What ought to I do about it?
Nothing. Cost the subsequent shopper extra.
20) I’ve a variety of visitors however no revenues. What ought to I do?
Promote your enterprise. There’s just one Google. (Properly, there are two or three Googles: Fb, Twitter, and so forth., however none of them are you.)
21) I’ve been in enterprise now for six years, and my enterprise doesn’t appear to be rising. It’s even slowing down. What ought to I do?
Provide you with 10 concepts a day about new providers your enterprise can provide. Attempt to get a buyer for every new service.
I do know one enterprise on this scenario that refuses to do that as a result of their VCs are telling them to focus extra. You’re going to exit of enterprise in any other case.
22) How do I market my app?
Pals after which phrase of mouth.
23) Do I hearken to enterprise capitalists?
Sure, in fact. They gave you cash. However then don’t do something they ask you to do.
24) Ought to I care about margins?
No. Care about revenues.
25) When ought to I rent individuals full time?
When you may have revenues.
26) C Corp or S Corp or LLC?
C-Corp for those who ever wish to tackle buyers or promote to a different firm.
27) What state ought to I incorporate in?
Delaware.
28) Ought to founders vest?
Sure, over a interval of 4 years. On any change of management, the vesting hurries up.
29) Ought to I patent my concept?
Get prospects first. Patent later. Don’t speak to legal professionals till the final potential second.
30) Ought to I require enterprise capitalists to signal NDAs?
No. No one goes to steal your concept.
31) Ought to I’ve a technical co-founder if I’m not technical?
No. If you happen to don’t have already got a technical co-founder, you’ll be able to at all times outsource know-how and never hand over fairness.
32) Ought to I barter fairness for providers?
No. You get what you pay for.
33) Ought to I construct a product?
Possibly. However first see if, manually, your product works. Then take into consideration offering it as a service. Then productize the generally used providers. Too many individuals do that in reverse after which fail.
34) How a lot dilution is an excessive amount of dilution?
If somebody desires to present you cash, then take it. The outdated saying, “one hundred pc of nothing is price lower than 1 p.c of one thing” is true.
35) What if no person appears to be shopping for my product?
Then change to a service and do no matter anybody is prepared to pay for utilizing the abilities you developed whereas making your product.
36) If a shopper desires me to rent their pal or they gained’t give me the enterprise (e.g. like a bribe) what ought to I do?
At all times do the moral factor: Rent the pal and get the shopper’s enterprise.
37) What do I do when a buyer rejects me in a B2B enterprise?
Keep in contact as soon as a month. By no means be indignant.
38) In a B2C enterprise?
Launch quick. Add new options each week.
39) What if my shopper asks me to do one thing not in my marketing strategy?
Do it, or discover somebody who can do it, even when it’s a competitor.
40) Ought to I ever speak badly a couple of accomplice or an worker despite the fact that they’re terrible?
By no means gossip. At all times be straight with the offender.
41) I’ve plenty of concepts. How do I decide the proper one?
Do as many concepts as potential. The proper concept will decide you.
42) Ought to I get an workplace?
No, not until you may have revenues.
43) Ought to I do market analysis?
Sure. Discover one buyer who DEFINITELY – definitely – will purchase a service from you. Word that I don’t say purchase your product, as a result of your preliminary product is at all times not what the client needed.
44) Ought to I pay taxes?
No. You must at all times reinvest your cash and function at a loss.
45) Ought to I pay dividends?
See above.
46) When ought to I hearth workers?
When you may have fewer than six months’ burn within the financial institution and also you aren’t getting revenues rising quick sufficient.
47) For what different causes ought to somebody hearth an worker?
- After they gossip.
- After they don’t over-deliver continually.
- After they ask for a elevate as a result of they assume they’re making beneath business commonplace.
- After they speak badly a couple of shopper.
- After they have an perspective.
48) When ought to I give a elevate?
Not often.
49) How large ought to the worker possibility pool be?
15 to twenty p.c.
50) How a lot do advisers get?
One-fourth of 1 p.c. Advisers are ineffective. Don’t even have an advisory board.