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I'm a Co-Founder selling my equity due to disagreement, has anyone sold equity to 3rd party to gain best value in the exit after 3 years sweat equity?

3

Answers

Mike Magolnick

CEO, Social, Digital, Critical Marketing, Strategy

In this business environment, a “corporate buyer” will be looking at your net income and value you based on a multiple of such. For example if the company generated $500,000 but only earned $75,000, you may be looking at a value of $200-$300,000 from a corporate buyer. It also depends on whether or not that revenue is stable and is reliant on you and your partner, in which case you might get an even lower pay out.

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Yoash Dvir

Business and legal expert

Different countries have different rules regarding arbitration. In most places, the parties to the agreement decide in advance what will be the arbitration's rules such as: how will the the arbitrator be appointed, how long will the arbitration take, what procedural rules will apply, who will pay the costs of it (can be both parties in equal parts, according to the arbitrator's ruling or any other way), etc. A good lawyer can draft this as part of the agreement and you can also find some examples on line. Good luck

Kyle Boyer

Business startup expert

Are you asking about software that translates the files for you? If so I wouldn't recommend using software translating anything. It's never really accurate. My recommendation for translation would be to find someone on fiver or another freelance website do that kind of work. Make sure they are familiar with the VTT file format, they are proficient in the language or languages you want them to translate to. Also make sure they are proficient in the English language as well. If you want further advice for where to find people like this, please, feel free to reach out. Best of luck!

Curtis Libby

Breeding new life into business for 30 years!

Having direct experience in this area I would suggest using a combination of D&B data, trade association lists, email opt-in tactics and straight up cold calling. The key is to reaching the right people within the solar firm based upon your target message.

Kari Harper

Project management and marketing professional

First of all I want to give you a lot of credit for what you are doing. One of the great things about being a business owner is that the successes are truly your own, but the downside is that the failures are too. Going through the tough times can be emotionally and physically exhausting. To get started with, well, getting started, you need to first deal with the past crud and work to rebuild the business' reputation and trust. Too often businesses attempt to start fresh under a new identity without addressing the baggage and ultimately they are not successful because the air has not been cleared. Think about any major company that has had a PR nightmare whether it be tainted food, tampered packaging or a mechanical error. What do they do? They publicly admit they messed up and expressed their plan to ensure it doesn't happen again. Now for you, I am not saying to alert the media. Simply start with your stakeholders. Reach out to those you feel you have wronged. Invite them to coffee or lunch, talk through the problems and get their input as to what and how you can improve during this next phase. As you build up trust, your network expands organically, and as you clear that air, those former foes now feel that they are playing a part in your new endeavor. Once you start to rebuild that reputation the re-branding and re-launching is easy. Everyone makes mistakes. It is how they are dealt with that makes the lasting impression, and frankly, people in business want to help others with their business.

TJ Kelly

Expert in Sales-Marketing Alignment

No first-hand experience, no. But I hope my answer can still be helpful. Go after the problem. Write articles and resources about the issues that your add-on solves. Publish YouTube videos and in-depth written pieces detailing every tiny feature of the add-on, and how it benefits G Docs users. It's true that almost no one will read every word of your in-depth piece, or watch all 9 minutes of your video, but that's ok. Google will. And whatever small percentage of those resources applies most directly to searchers will be valuable to them. Then you've gotta promote these resources. Places like Quora and Reddit are a great start. Don't be overly spammy, just hawking your add-on shamelessly. Be genuinely helpful, and provide links to your articles/videos (because THEY are helpful). Trust that some of the Quora/Reddit users will visit your resources, and some of those visitors will view your add-on. Not all, but some. If you try to go for 'all', you'll drive people away, especially on Reddit. Answers like this one on Clarity are another great spot. Facebook and LinkedIn groups. Other forums or online communities. Find niches and verticals that may frequently encounter your problem. Then find groups of people in those niches/verticals. Again, don't spam. But when those people see that you can understand and relate to their problem—and help them solve it—they will gladly risk a click. Let your videos/articles do the rest of the work moving them down the funnel toward the add-on. Hope that helps! By the way, what does the add-on do?? Super curious now.

Steve Coltman

Culture trouble shooter

Hi, The general model these days is a standard annual subscription, with 10% discount if they pay 3 years upfront (all negotiable of course). Feel free to contact me if you need more information. Good luck Steven (based in Europe)

Kari Harper

Project management and marketing professional

While job boards can be a beneficial resource, if you are looking for individuals with experience and a high rate of success your best bet to fill positions will be via networking. High level sales reps are in constant demand across all industries which means they are being fished rather than doing the fishing. Most high level reps are recruited by other companies while employed and do not frequent the job boards as often as entry-level or associate reps. To get started with this approach, think about who you do business with? Who is your banker, who is your insurance rep, who sold you your car, etc. All of these individuals have careers that are dependent upon successful networking and if they sold you, they are a good person to chat with because they will know other qualified individuals. Also, they are likely to know who may not be overly happy in their current job.

Mark McNair

I love turning ideas into profitable businesses!

Love this! You've already got active students which is a great starting place. Just a couple of clarifying questions: - Do you have a separate email list for your students outside of the list gained from giving out the eBook? This could be where your promoter marketing can begin. - Is 'active promoter' the endgame where you make a profit? If so, what does that look like? - As far as bringing in more people; Draws/Competitions are usually more successful in a social media environment for several reasons. What does your social media audience look like? Another way to maximize your traffic to bring in more people would be to set up a re-marketing campaign for the people who have viewed your course, but decided not to sign up. This group might be more likely to just download the free eBook in exchange for their email. The only issue is that you would need paid traffic via Google Ads or Facebook Ads to do this well. If you don't have Google Analytics set up yet, I would do that right away so that it can start tracking those traffic flows.

Alexander Malchevskiy

Organisational design specialist.

Hello! You have to ask yourself: Why I need a business partner? What value this partner can bring to my business? How much this value costs? Does he/she shares the same values and has same vision like I do? According to answers you can prepare a nice offer and a small presentation. But do not forget to connect with your lawyer and prepare all the documents in a proper way, defending your part in the Company. (always do this) Remember, that conflicts between partners are the fastest way to the destruction of the company. Have questions? Call me. I am MBA, PhD, professional in business transformation and business development.

David Favor

Fractional CTO

If you're not an American or Canadian citizen + you have no physical location, you only pay your Estonian taxes.

Nigel Sonariwo

Virtual Strategic Marketing and PR Consultant

Hello! What you are asking after, is an age old business challenge; One that can be addressed, utilizing the modern tools of social media, to help stake your product and service position. The competition are doing what they are supposed to do; They are selling the ‘sizzle’ not the steak; by offering lower prices with less value added services than you do. There will always be customers who initially react to a lower perceived price offering. However; there are a number of ways to compete against price; but I’d first need to know more about what exactly you are selling; your current market position; your competitive price points; margins etc. The competition are the new guys in town, as you rightly noted. They need to attack you as the veteran in the industry; the incumbent “gold standard’ as it were; by offering price related discounted values. Your counter is to remind the customers and prospects of what exactly you offer and how your product stand out from the competition. Let’s talk!

SAAD

Expert in Quality

Canada is very big market for medical devices due to its extensive health care programs.You only need to make clear Usage/Substance of Concern Guides/leaflets so that authorities can clearly understand about the product.

Youssef Zemhoute

Soulcaller & Entrepreneur

Marketing in Luxury Hotels

Daniella Flores

Founder of iliketodabble.com. Web guru.Super geek.

Hello, my name is Daniella. I am the founder of iliketodabble.com. I would suggest link building as soon as possible as it can take up to 10 weeks on average to see 1 rank jump. If you have followup questions, I am glad to help you on a call. Thank you, Daniella

Matt McCullough

Professional Python 2.7 & Python 3 Expert

I'd say that market knowledge is incredibly important. You can buy a business at any revenue point, but if you don't know much about the market it's in or the industry, you could very well tank it. Do your due diligence and understand your exact plan and intentions of what you'd do with the newly bought asset to make sure that it has the resources needed to continue doing it's best and growing.

Allen Broady

Developer and Scientist.

I would monitor the traffic on what app store your app is being downloaded to pinpoint frequency of downloads from individual markets, turnover rates from users, and ratings and comments which would contain valuable information from your users. Determining what previously provoked users to your product, what works what doesn't which such a large user base you should be able to derive a bunch of user data to be able to derive a methodology to further study habits of users and pinpoint at least some of the commonalities of good vs bad for your app. To start you of look into Google Analytics, Fireball, Flurry, they are pretty sold for analytics of small to medium size traffic. All in all whatever method you use please take to account the current privacy issues now in your collection of data to avoid any future complications.

David Favor

Fractional CTO

1) CloudFlare is flakey. If you're attempting to manage SEO, avoid using CloudFlare or any tech which lives between your Website + your visitors. 2) Squarespace allows very little SEO control. Switch to WordPress, if you're running a business you'll be working on for years.

Trishul Patel

Product at Accel

People talk to people they like but people do business with people they trust. You don't actually sell them on anything you provide insight and help them on what's best for them even though it may not create an immediate sale you are building a relationship which will develop over time.

Phong Huynh

Web Developer, Business Consultant, language

A good Selling technique is do not go in right away to the benefit or technical stuff. First state your intention. Ex. Hi john, I'm calling you today because i believe our service can help you increase your sells. then ask How is your sales team doing are they motivated enough to make sales? are they making enough calls? poke and prod and talk about your service.

Allen Broady

Developer and Scientist.

Hello, If I am assuming that you have all these chats per day stored(If not storing these chats on a data warehouse for reporting purposes is an option). There is software such as Nvivo which is great for qualitative analysis which you can use for these tasks. There are also packages for R, Python and even Excel for analyzing data.

Flt.Lt. Sridhar

Start up mentor and speaker

Catch 22? Not at all...You need to project your weakness ( according to you) as a strength. Be open and bold about your online business. It is work experience and not a career break! You take that experience to the companies who are in the same line of business and you are very exciting for them. Please dont waste your time with recruiters. They have fixated ideas and mandates and can rarely identify or appreciate real talent. You need to get rid off your baggage you are carrying in your head. Your non-profit work would never become a business as your target customers cant afford to pay. Keep it that way and continue doing good karma. Join relevant LinkedIn groups based on your business and connect with like minded people. Target businesses in the same domain and directly contact them seeking appointments with hiring managers. Go as an entrepreneur and explore synergies. There is no shame in saying that your business did not work. But analyze why. If you feel that it is only because you did not promote it actively, then please go ahead and promote the hell out of it. Being an entrepreneur is the best work experience any employer can get as you would know the entire business cycle. You never know, your promotion, done in the right way may actually create more jobs!

Craig Zingerline

6x founder. Launched over 50 products.

What are some of the things users are saying that show you it's hard for them to understand the system? Do you have any consistency in areas where people are having trouble? Are you using any tools to track conversion rates through your funnel, and have those metrics gotten worse since your redesign? Feel free to book time with me if you want to dig in.

Yvette Parker

Brand Growth Pro, Project Management

Whether you're seeking B2B or B2C LEAD GEN, you can lease these lists to pump up your email mailing list. You can also harvest email leads through speaking engagements where you can expound on your area of expertise or product value.

Entrepreneurship

How do you determine partner equity?

6

Answers

David C

I help you buy, sell, plan, value a business

Hi, great question. You determine the value of the business before the partner joins, then you determine the value of what they bring. You then issue new shares to them. I made this video which may clear things up a bit for you. https://youtu.be/1EjKjSAd1F8 And this one about share dilution: https://youtu.be/FtogXYXCC1s If you want to discuss your specific circumstances, please feel free to request a call. David www.DavidCBarnett.com

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