Comments on: Random lessons from 12 years in startups http://leanstartups.com/random-lessons-from-12-years-in-startups.html Best practices in lean business operations, technology, and other areas pertinent to success of startups, small, and mid-market businesses. Thu, 11 Mar 2010 04:35:37 +0000 http://wordpress.org/?v=abc hourly 1 By: Apolinaras Sinkeviciushttp://leanstartups.com/random-lessons-from-12-years-in-startups.html#comment-3005 Apolinaras Sinkevicius Wed, 16 Sep 2009 21:51:27 +0000 http://leanstartups.com/?p=523#comment-3005 1st. Honored to have you comment on my blog. 2nd. Love it when you get deep into the issues. Definitely helps my mission of opensourcing as much knowledge as possible, so 1st time entrepreneurs would take advantage of it and make less mistakes. 1st. Honored to have you comment on my blog.
2nd. Love it when you get deep into the issues. Definitely helps my mission of opensourcing as much knowledge as possible, so 1st time entrepreneurs would take advantage of it and make less mistakes.

]]> By: Jeffrey J Davishttp://leanstartups.com/random-lessons-from-12-years-in-startups.html#comment-3004 Jeffrey J Davis Wed, 16 Sep 2009 21:46:34 +0000 http://leanstartups.com/?p=523#comment-3004 Apollo -Good post with some sage advice. I would offer just a few modifications / additions.MOD1: I think you should get comfortable with the financials if you have ANY ownership stake, even 1%. Your residual equity value will be HIGHLY dependent on growth in financial performance and EBITDA generation of the company. Don't get confused by complex accrual based accounting treatment. Focus on how much free cash is being generated by the company and where it comes from.MOD2: Make sure "normal human" English does not get diluted down to "ambiguous and unenforceable" English. You need to be able to lean on this contract when and if the time comes.ADD1: Invest some of your own money to have a professional labor attorney review and revise your employment contract prior to signing, ensuring solid and fair change of control, termination and vesting language that protect your interests.ADD2: Get very knowledgeable with the investment thesis and exit timeline of your equity sponsors, angel investors or VC backers. As much as you may not believe it, your job is to help them monetize their investment in your company (while at the same time creating a great enterprise).ADD3: Never assume that your company or your position will exist more than 30 days into the future. Keep networking, Keep your radar up, Pay It Forward.Best,@JeffreyJDavis .-= Jeffrey J Davis´s last blog .. =-. Apollo -

Good post with some sage advice. I would offer just a few modifications / additions.

MOD1: I think you should get comfortable with the financials if you have ANY ownership stake, even 1%. Your residual equity value will be HIGHLY dependent on growth in financial performance and EBITDA generation of the company. Don’t get confused by complex accrual based accounting treatment. Focus on how much free cash is being generated by the company and where it comes from.

MOD2: Make sure “normal human” English does not get diluted down to “ambiguous and unenforceable” English. You need to be able to lean on this contract when and if the time comes.

ADD1: Invest some of your own money to have a professional labor attorney review and revise your employment contract prior to signing, ensuring solid and fair change of control, termination and vesting language that protect your interests.

ADD2: Get very knowledgeable with the investment thesis and exit timeline of your equity sponsors, angel investors or VC backers. As much as you may not believe it, your job is to help them monetize their investment in your company (while at the same time creating a great enterprise).

ADD3: Never assume that your company or your position will exist more than 30 days into the future. Keep networking, Keep your radar up, Pay It Forward.

Best,

@JeffreyJDavis
.-= Jeffrey J Davis´s last blog .. =-.

]]>