hi I’m Evan Carmichael welcome to
another edition of ask Evan in today’s
episode I’m going to answer questions
from one of my readers Eric who runs a
software company has got 30 different
applications that are all in kind of
beta mode haven’t really launched yet
and he’s looking for a CEO to come in
and help him run the company wondered if
a CEO would buy in and that’d be a good
way to raise capital he’s still working
at a full-time job and is you know has
it has a troubled a lot of entrepreneurs
go through where they need money to run
the business but they don’t have enough
money coming in from the business to
kind of keep it going so looking for
ways to raise capital and also looking
at how to get these companies is
software company off the ground so to
give you some advice Eric first of all
it’s very rare that CEOs will buy in
especially the kind of really early
stage you can get a CEO to come in and
join the company but unless you’re
making sales it’s hard for them to give
you money up front if you were you know
full time in this business and you
already had some traction really making
sales and there’s a valuation on the
business it’s a lot easier to convince
somebody to put money in at this stage
if you’re not even in the business full
time it’s hard to convince somebody to
put money in and join the company full
time to pay you a salary so you have you
have to get the business a little bit
further ahead if you want somebody to
put money into the company and join a
CEO so what I would suggest for you is
if you don’t have the skill sets to be
the CEO and be the business development
guy then you can find somebody who can
join you in that role but they don’t
probably wouldn’t buy in but they could
join as an equity partner in the company
and make them earn in to the business so
when I had my first software company I
wasn’t the founder I joined a couple
years after the company was started but
I became an owner in the business we
were one of three owners and I joined as
business development guy so I was out
doing media discipleship in partnership
relationships getting distribution
channel set up that was my role so I
believe in the company they already had
a little
bit of a track record so I joined and I
became you know chief operating officer
and one of the equity owners in the
business I didn’t buy into the business
as it was in a cash outlay at the
beginning but it was my time invested to
you know help make that company grow so
you can still make that work you have to
find the right person obviously I try to
make them earn in so you want to be very
careful with money that you know equity
that you give up in your company you
it’s like getting married when you get
partners in your business so you want to
make sure that there’s milestones that
are put in there so they don’t just earn
whatever you’re thinking giving up
twenty-five percent thirty percent fifty
percent you don’t just give it them
around the bat you have to prove
themselves so it could be you know
making X number of sales or whatever you
want them to do as part of their job
description make them earn in make sure
they earn your trust make sure something
you can work with for a long period of
time and that could be an option for you
to go if you’re really struggling on the
money side you have two options one is
keep going part time and focus on one of
the things that really will help grow
your business they said he had 30
applications what’s the one that’s
closest to actually be able to make some
cash alright the cash flow you got to
get it coming in if you want to be able
to spend more time with your business
there’s nothing wrong with doing it part
time it just takes longer a lot of
businesses are started part-time
moonlighting until you get to the point
where you can afford to spend more time
on it it’s a great way to be able to
build a business it’s not the sexy way
but it’s a great way to be able to build
your business but I would focus your
efforts on set of 30 programs pick one
that you think you can get some money
and quickly with and build that one out
the second option is to go out and raise
capital and it could be from an investor
you’re looking probably in an angel
investor at this stage the challenge
here is if you’re not in a full-time
it’s going to be hard to convince an
investor to give you money for and if
your pre sales or you just have a little
bit of sales you’re going to get killed
on the valuation so you might get the
money you need but you might give up a
huge chunk of your company where if you
let it wait a little bit longer and you
had
more sales and more revenue coming in
you could get a much better valuation so
Erica hope that helps a lot of
information I would still go out and try
to find somebody if you don’t think you
have the skills to help you run the
business make sure that they do burn in
and there’s nothing wrong with keep
going part-time just focus on getting
the software you know the one program
out there that will help generate some
revenue for your business so you can
afford to leave your job and run your
business on a full-time basis and if you
really need to go up raise capital but
maybe make it in small chunks you’re not
giving up too much of the business I
hope that helps let me know what you
guys think if you wanna leave a comment
underneath the video love to hear what
your experience has been or if you have
other questions or so my device for Eric
as well and if you like the video please
give it a thumbs up I always appreciate
seeing those come in it makes you want
to do more of these videos so thank you
and we’ll see you on the next episode
you
another edition of ask Evan in today’s
episode I’m going to answer questions
from one of my readers Eric who runs a
software company has got 30 different
applications that are all in kind of
beta mode haven’t really launched yet
and he’s looking for a CEO to come in
and help him run the company wondered if
a CEO would buy in and that’d be a good
way to raise capital he’s still working
at a full-time job and is you know has
it has a troubled a lot of entrepreneurs
go through where they need money to run
the business but they don’t have enough
money coming in from the business to
kind of keep it going so looking for
ways to raise capital and also looking
at how to get these companies is
software company off the ground so to
give you some advice Eric first of all
it’s very rare that CEOs will buy in
especially the kind of really early
stage you can get a CEO to come in and
join the company but unless you’re
making sales it’s hard for them to give
you money up front if you were you know
full time in this business and you
already had some traction really making
sales and there’s a valuation on the
business it’s a lot easier to convince
somebody to put money in at this stage
if you’re not even in the business full
time it’s hard to convince somebody to
put money in and join the company full
time to pay you a salary so you have you
have to get the business a little bit
further ahead if you want somebody to
put money into the company and join a
CEO so what I would suggest for you is
if you don’t have the skill sets to be
the CEO and be the business development
guy then you can find somebody who can
join you in that role but they don’t
probably wouldn’t buy in but they could
join as an equity partner in the company
and make them earn in to the business so
when I had my first software company I
wasn’t the founder I joined a couple
years after the company was started but
I became an owner in the business we
were one of three owners and I joined as
business development guy so I was out
doing media discipleship in partnership
relationships getting distribution
channel set up that was my role so I
believe in the company they already had
a little
bit of a track record so I joined and I
became you know chief operating officer
and one of the equity owners in the
business I didn’t buy into the business
as it was in a cash outlay at the
beginning but it was my time invested to
you know help make that company grow so
you can still make that work you have to
find the right person obviously I try to
make them earn in so you want to be very
careful with money that you know equity
that you give up in your company you
it’s like getting married when you get
partners in your business so you want to
make sure that there’s milestones that
are put in there so they don’t just earn
whatever you’re thinking giving up
twenty-five percent thirty percent fifty
percent you don’t just give it them
around the bat you have to prove
themselves so it could be you know
making X number of sales or whatever you
want them to do as part of their job
description make them earn in make sure
they earn your trust make sure something
you can work with for a long period of
time and that could be an option for you
to go if you’re really struggling on the
money side you have two options one is
keep going part time and focus on one of
the things that really will help grow
your business they said he had 30
applications what’s the one that’s
closest to actually be able to make some
cash alright the cash flow you got to
get it coming in if you want to be able
to spend more time with your business
there’s nothing wrong with doing it part
time it just takes longer a lot of
businesses are started part-time
moonlighting until you get to the point
where you can afford to spend more time
on it it’s a great way to be able to
build a business it’s not the sexy way
but it’s a great way to be able to build
your business but I would focus your
efforts on set of 30 programs pick one
that you think you can get some money
and quickly with and build that one out
the second option is to go out and raise
capital and it could be from an investor
you’re looking probably in an angel
investor at this stage the challenge
here is if you’re not in a full-time
it’s going to be hard to convince an
investor to give you money for and if
your pre sales or you just have a little
bit of sales you’re going to get killed
on the valuation so you might get the
money you need but you might give up a
huge chunk of your company where if you
let it wait a little bit longer and you
had
more sales and more revenue coming in
you could get a much better valuation so
Erica hope that helps a lot of
information I would still go out and try
to find somebody if you don’t think you
have the skills to help you run the
business make sure that they do burn in
and there’s nothing wrong with keep
going part-time just focus on getting
the software you know the one program
out there that will help generate some
revenue for your business so you can
afford to leave your job and run your
business on a full-time basis and if you
really need to go up raise capital but
maybe make it in small chunks you’re not
giving up too much of the business I
hope that helps let me know what you
guys think if you wanna leave a comment
underneath the video love to hear what
your experience has been or if you have
other questions or so my device for Eric
as well and if you like the video please
give it a thumbs up I always appreciate
seeing those come in it makes you want
to do more of these videos so thank you
and we’ll see you on the next episode
you
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