Author: Gordon Daugherty

Eisenhower – Planning

"No battle was ever won according to plan, but no battle was ever won without one." (Related: "In preparing for battle I have always found that plans are useless, but...

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technology licensing

Licensing Your Technology

Some startups build core technology with the sole purpose of making money by licensing it to others while other startups later discover they have something that could be licensed as…

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Defending Your MVP or Prototype Stage with Investors

Defending Your MVP or Prototype Stage with Investors

While you are still in the idea phase, investors tend to focus on vision, promise, potential and personality traits of the founder(s) because that’s all you have for them to…

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Colten – Imitation

"Imitation is the sincerest form of flattery" – Charles Caleb Colton, 1820       Note:  Similar versions of this quote can be found as far back as 1708: "You...

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bridge note

Bridging a Gap Using a Convertible Note

Most startups think of a convertible note as the most common fundraising vehicle used during the pre-seed and seed stages (see related article titled “Convertible Note Basics“).  What they might…

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startup accelerator

Is a Startup Accelerator Right for You?

It seems like everywhere you look now there is some form of startup program advertising their method of helping entrepreneurs increase their odds of success.  From incubators and accelerators to…

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marketplace expansion

Expanding Beyond Your Home Market (Marketplaces)

Online marketplaces are being created for just about anything you can think of.  Some have a local services component on one side of the marketplace that carries an extra burden…

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negotiation

Intro to Enterprise Sales

Not all sales processes are created equal.  In fact, the whole purpose of developing a sales process for your company is to uniquely match the dynamics of your target audience’s…

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Ben Franklin – Planning

"If you fail to plan, you are planning to fail" – Benjamin Franklin

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approached for acquisition

Approached for Acquisition – Now What?

I have written articles about various aspects of M&A and have even written two, based-on-true-story case studies (titled “A Tale of Two Acquisitions”) to teach the numerous lessons I’ve learned…

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Golden Rules For Really Tough Times

Golden Rules For Really Tough Times

Many (probably most) startups go through periods of extremely little cash in the bank and with visions of crashing and burning before being able to recover.  Unfortunately, crashing and burning…

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strategic partnership

The Hidden Value of Embedding With Your Strategic Partner

It usually takes a huge effort to get the attention of a big strategic partner and impress them enough to get a formal partnership. In fact, might have you read…

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Naval Ravikant – Desire

“Desire is a contract you make with yourself to be unhappy until you get what you want.”  – Naval Ravikant (serial entrepreneur, angel investor)

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Startup Lessons from Mother Goose

Startup Lessons from Mother Goose

As I was reading a collection of Mother Goose rhymes that I bought to eventually read to my new granddaughter, I was reminded of a great book titled “All I…

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Startup Lessons from Dr. Seuss

Startup Lessons from Dr. Seuss

As I was reading some Dr. Seuss books that I bought to eventually read to my new granddaughter, I was reminded of a great book titled “All I Really Need…

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10 basic Fundraising Terms

10 Basic Fundraising Terms You Must Understand

Every field of study has its basic vocabulary of words and phrases that come up over and over again. This vocabulary is so fundamental that it is used to explain…

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demand generation campaign portfolio optimization

Optimizing Demand Generation Using Portfolio Theory

There is one question that haunts every experienced marketing executive as it relates to spending money on demand generation: what is the optimal mix of demand gen marketing campaigns and…

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Einstein – Simplicity

"If you can't explain it simply, you don't understand it well enough" – Albert Einstein Note:  There is some dispute about whether Einstein actually wrote or said this.  Lord Rutherford...

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hiring first sales rep

Hiring Your First Sales Professional

You built your MVP, got it launched to the delight of some paying customers and just raised some seed funding to move to the next phase of your company's evolution.  You...

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Misuse of Open Source Software Can Kill Your Acquisition Exit

Misuse of Open Source Software Can Kill Your Acquisition Exit

How can something that’s free and openly available cause so much unintended harm to your business?  The availability of open source software has contributed as much to lowering the cost…

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Mark Twain – Vigor

"It's not the size of the dog in the fight, it's the size of the fight in the dog." - Mark Twain

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website conversion rates

10 Ways to Improve Website Conversion Rates

Regardless of your ideal mix of demand generation programs, I’m willing to bet that most of them are designed to bring prospects to your website in the hopes of later…

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code names

A Secret to Securing a Strategic Partnership

Most startups desperately crave a partnership with a big, strategic player that could offer them significant leverage and credibility.  Just think about the giants in your particular industry.  That’s who…

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Investors Write Checks for Outcomes, Not Activities

In a previous article, I described various ways to determine how much money to raise (you can read it here).  If you’ve decided and communicated how much you are raising, you might…

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first board meeting

Your First Board Meeting

When you first incorporated as a C-corporation, probably only you and your co-founder were named as board members. You never really had official meetings or voted on anything, that you…

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Friedrich Nietzsche – Strength

"That which does not kill me makes me stronger" (German: "Was mich nicht umbringt, macht mich starker") - Friedrich Nietzsche (from Maxims and Arrows)

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The Internet of Everything – Market Projections

Wow, what a plethora of trends, projections and factoids from Business Intelligence.  Great material for IoT startups looking to add market sizing and trending data into their pitch. http://read.bi/1BUGhHg  (click...

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management system

Establishing a Management System

I know what you’re thinking.  “We don’t even have 20 employees, so why do we need a management system?”  You might be thinking this because you previously worked for a…

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market sizing

Sizing Your Market

If you aspire to build a company that is scalable, then the size of your market is a very important element of your business plan. That’s because it suggests the…

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acquisition

A Tale of Two Acquisitions – Part 2

Common perception is that in an acquisition the acquirer has all of the power.  After all, they are the one that’s writing the check and they can walk away at…

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acquisition

A Tale of Two Acquisitions – Part 1

For every headline you see about a tech company being acquired for some huge multiple of revenue or profit there are literally hundreds of other acquisition approaches that either ended in nothing…

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startup CTO title

The Dilemma of the Startup CTO Title

You see it all the time.  A young, invincible hacker-hustler duo join together as startup co-founders to pursue a dream of becoming the next Google or Facebook.  The hustler takes the CEO…

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startup compensation

Founder & Early Employee Compensation When You’re Cash Poor

In the earliest days of a startup venture, there are no published compensation rates or even good studies to use as guidance.  That’s because each company and founder situation is…

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Setting the Max Authorized Amount on Your Convertible Note

Let’s assume you have already determined $500K is the ideal amount of money to raise in your current fundraising round (see related article titled “How Much Should You Raise”) and…

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sales compensation

Documenting Your Sales Compensation Plan

I can't tell you how many startups go through the effort to think through the best method to compensate their sales team but don't take the next step to document...

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stock pricing

Pricing Your Stock in the Early Days

I get this question all the time from US-based startups: how should we price our individual units of equity (shares of stock for C-corps; units for LLC’s)  It’s a very…

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legal costs

10 Tips for Controlling Legal Costs

It’s amazing how quickly legal costs can add up. If you’re running a startup, it’s possible that your legal costs are second or third highest amongst all of your expenses....

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convertible note extension

Extending Your Convertible Note

You didn’t plan for it to happen this way but you’re reaching the maturity date (end of term) on your convertible note and didn’t raise money in an equity round…

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cool code names

Cool Code Names

How cool is it to use a code name for an important project rather than “version 2.5” or “next gen”?  Same for a company acquisition or game-changing strategic initiative that…

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product roadmap

Prioritizing Your Product Roadmap

If you already have an experienced product manager on your team, they are probably/hopefully following some well-established product management process. But what about the early days of company formation before…

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startup

When Offered Help, Be Ready

Throughout your startup’s evolution you’ll find that you do a lot of networking with others that can potentially help you.  This includes potential business partners, employees, advisors, angel investors and VC’s.  Regardless…

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Visualizing the Interactions Between CAC, Churn and LTV

Visualizing the Interactions Between CAC, Churn and LTV

Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities,…

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startup focus

Tools for Maintaining Focus

Regardless of a company’s size and stage, maintaining focus is often a critical success factor.  This doesn’t suggest nimbleness and flexibility are bad.  Quite the opposite, as focus and flexibility…

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sales commission compensation plan

Two Variants of the Straight Line Sales Commission Plan

In the spirit of keeping a sales commission plan simple, many sales executives choose to use a simple straight-line methodology.  In other words, 88% achievement of the sales goal equates…

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Absolute Versus Relative Sales Commission Plans

Compensating a sales team is a tricky and sensitive endeavor that requires a lot of advanced planning.  I previously wrote about my 5 Golden Rules of Sales Compensation.  But even if…

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MBO bonus plan

MBOs Demystified

Certain roles in the company call for a bonus as part of the total compensation plan.  But what criteria should be used for determining the bonus payout?  Common choices include company-level,…

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exit strategy

Answering the “Exit Strategy” Question

You’ve just completed a great investor pitch with heads nodding and good interaction.  You’re about to ask “Does this opportunity interest you enough to explore an investment?” when instead you get…

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competitive positioning

Comparing Yourself Publicly to the Market Leader

Market leaders almost never compare themselves to competitors publicly because it gives their competitors legitimacy and potentially shows nervousness about them.  But what if you’re #3, #5 or lower in…

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The “Yeah, Right” Rule

Similar to the “So What” rule, every time you make a claim, prediction or forecast, imagine your audience is thinking to themselves “yeah, right!” in skeptical fashion immediately after seeing/hearing your…

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SAFE versus convertible note

Comparing the SAFE to Convertible Notes

Initially made available by Y Combinator (YC) in 2013 and subsequently updated in late 2018, the SAFE investment instrument was intended to improve on the highly popular convertible note used…

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