What’s Your FU Money Amount

At today’s EO Accelerator Accountability Group meeting one of the topics I facilitated was around business valuations and estimating the value of a startup. For these startups with under $1 million in revenue the most common valuation range is 4-6x profits (e.g. $500k in revenue startup with $100k in profits might be worth $500k). After…

Base Hit to Homerun Values in a Startup Exit

The business world loves sports metaphors. When I was at Duke in the late 90s the business school offered a course on sports metaphors geared towards foreign students because metaphors are so prevalent. One of the more common phrases for startups is homerun, meaning that the startup was bought for a huge amount or went…

The Startup Toolkit’s Business Model Canvas

Yesterday’s post on The 9 Building Blocks of a Business Model prompted a comment by Denis Baranov recommending The Startup Toolkit. I was first shown The Startup Toolkit and their Business Model Canvas a couple months ago at the TiE VISTA Conference by one of the attendees. The Business Model Canvas is the 9 building blocks of…

The 9 Building Blocks of a Business Model

A few months ago I ordered the book Business Model Generation on Amazon.com after seeing it mentioned on several blogs. Memorial Day weekend makes for the perfect time to dive into the book and I’m just getting started. Straight from the book, here are the nine building blocks of a business model: Customer Segments –…

Prepare for Product Demo Failure

This afternoon I had the opportunity to listen to two entrepreneurs pitch their new product and company at my office. The entrepreneurs are talented software developers and have been building an app for the last four months. After some quick catching up I asked them to do a short product demo as I always want…

Limit the Brain Damage Work in a Startup

A friend of mine who’s been an entrepreneur for the last four years likes to refer to any of the stuff he doesn’t enjoy doing as brain damage. In his world, he doesn’t have back-office personnel support resulting in a quite a bit of brain damage. Most entrepreneurs have to deal with minutia that isn’t…