Be careful who you give your share
Posted: Sat Jan 18, 2025 7:08 am
Funding and capital are limited in most startups, so equity is a common fallback option.
But over time, I realized that it's important to be careful about who you give shares to, how much you give them, and when.
If you have a disagreement with any of the shareholders, you will have to either come to an agreement, allow them to continue making decisions in the company, or buy them out.
Buying out bad partners can be expensive, as I learned at Crazy Egg.
Make sure you know who you are giving shares to, how much you are giving them, and when you decide to give the shares away.
The more successful your company becomes, the more expensive the share buyback will be.
13. It is difficult to make money
While it is difficult to make money, it is easy to save money.
Instead of always counting on the next paycheck or the next round of funding to help you, start saving money. There are many ways that can hinder your ability to make money in the startup world.
Keep track of how much you spend and what you spend it on, and focus your resources on saving money rather than spending it.
You will thank me.
I have learned this in several areas of my life.
As a kid, I remember asking my mom if we could go eat at purchase mom data user data Taco Bell. She would often say no, that we needed to save some more money first.
We were doing well, but my mother was a very conscientious housekeeper.
When I started making money, I wanted to spend it. I had money, so I had to spend it, right?
So I went to buy a Maserati. I was turned down because I didn't have a loan. I didn't even know what a loan was.
But it was probably the best thing that happened to me. It taught me to be aware of what I spend money on and to save even when I had a lot of money.
One of the companies I worked for early on spent a lot of money building software, and then the recession hit. We didn't have enough money saved to survive the recession.
But over time, I realized that it's important to be careful about who you give shares to, how much you give them, and when.
If you have a disagreement with any of the shareholders, you will have to either come to an agreement, allow them to continue making decisions in the company, or buy them out.
Buying out bad partners can be expensive, as I learned at Crazy Egg.
Make sure you know who you are giving shares to, how much you are giving them, and when you decide to give the shares away.
The more successful your company becomes, the more expensive the share buyback will be.
13. It is difficult to make money
While it is difficult to make money, it is easy to save money.
Instead of always counting on the next paycheck or the next round of funding to help you, start saving money. There are many ways that can hinder your ability to make money in the startup world.
Keep track of how much you spend and what you spend it on, and focus your resources on saving money rather than spending it.
You will thank me.
I have learned this in several areas of my life.
As a kid, I remember asking my mom if we could go eat at purchase mom data user data Taco Bell. She would often say no, that we needed to save some more money first.
We were doing well, but my mother was a very conscientious housekeeper.
When I started making money, I wanted to spend it. I had money, so I had to spend it, right?
So I went to buy a Maserati. I was turned down because I didn't have a loan. I didn't even know what a loan was.
But it was probably the best thing that happened to me. It taught me to be aware of what I spend money on and to save even when I had a lot of money.
One of the companies I worked for early on spent a lot of money building software, and then the recession hit. We didn't have enough money saved to survive the recession.