Benefits of Price Transparency

Earlier this week I was asked about my thoughts on publishing product prices and general price transparency. Whenever I visit a website, especially for a Software-as-a-Service (SaaS) product, one of the first things I do is go to the pricing page and try and understand how the company positions themselves in the market. Overall, I’m…

Think Quarterly Growth Numbers for Investors

Investors love to talk about certain revenue minimums before they’ll consider investing (e.g. $1 million and $5 million are the most common thresholds). In reality, what they really want is a story that shows scalable growth. Let’s look at two examples: Company A Startup has been in business for four years Added $50,000 in new recurring revenue…

3 Little-Used Interviewing Tips Entrepreneurs Need to Know

After yesterday’s post on The Culture-Oriented 7 Step Hiring Process, Ron Hollis provided a great comment highlighting some his lesson’s learned starting, growing, and selling a successful tech company. Entrepreneurs have so many great tools and resources readily available that they don’t find some of the most powerful tactics. Here are three little-used interviewing tips entrepreneurs need to…

Recurring Revenue and Week Over Week Growth

Recurring revenue is incredibly powerful for startups. On the Software-as-a-Service (SaaS) front, recurring revenue gets combined with strong gross margins, strong renewal rates (hopefully!), and strong predictability. Only, it’s incredibly difficult to get the engine going. Paul Graham says growth of 5-7% per week is good (see his Growth essay). Let’s look at how a 5% per…

Over-Communicating in a Startup

I’ll be the first to admit it: I’m not the best at communicating. I have a ton of ideas in my head and I know exactly where we’re going, but I have a tendency to overlook the fact that just because I feel confident about things that everyone else feels confident as well. Fortunately, I recognize that communicating…

Founder Equity Shouldn’t be Common Shares

Back in 2006 and 2007 there were a number of articles talking about a new type of founder stock called “FF class”, named after Founders Fund. These class of shares were designed for founders that might want to take money off the table at some point before selling the company (see this VentureBeat article on Series…