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