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Profit Pitfalls

Profit and Loss

One of the most common misconceptions about startups deals with the basic definition of profits. Most people understand that Profits = Revenue – Expenses
but, many people make some fundamental mistakes about what constitutes revenue and expenses

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Slicing Pie Offer Letter Template

I published a sample Slicing Pie offer letter a few years ago and it has been a very popular download. Last week I took another look at it and made some updates. The key is to make it clear that the participant is being offered a position with an agreed-upon fair market salary, but that […]

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New Book in Progress: Slicing Pie À La Mode

I’ve started work on a new book, called Slicing Pie À La Mode, which will cover a number of topics related to Slicing Pie in more depth including: Consulting Companies Real Estate Deals Bonus Programs Incubators and Accelerators (“Nested” Pies) Company Polices I’d like your input with regard to other topics I should be sure to […]

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The Four Horsemen of the Equity Apocalypse

There are four major problems with the way most equity splits are created in early-stage, bootstrapped companies. These are the “Four Horseman of the Equity Apocalypse” because the presence of any one of them can easily doom a fledgling startup by causing disputes between founders and other participants that have nothing to do with the actual business. A tragic tale told over and over and over…if you’re a party to an equity split with any or all of these fatal flaws brace yourself—things are going to get ugly!

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Avoiding Unnecessary Taxes With Slicing Pie

There is more than one way to make a Pie from a legal standpoint, the big issues relate to how shares are actually issued in a way to avoid unnecessary taxes. All equity-split models create more or less tax exposure depending on how the deal is executed. In some cases, the final split can be […]

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Do Our Monkey Brains Understand Fairness?

Fairness is a central element of human morality, but it is also an instinct of our primate brethren. An attendee of a Slicing Pie event in Seattle brought this to my attention (thanks Jim!) by sharing a fascinating video of how monkeys behave when they sense unfairness. In my experience, humans also have an innate […]

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Slicing Pie is Above the Law…But You’re Not, Unfortunately

Sometimes people ask me if Slicing Pie is “legal.” The short answer is: yes, absolutely, Slicing Pie is completely legal and is never illegal. The long answer is slightly more nuanced because Slicing Pie isn’t a legal framework, it’s a moral framework – it’s a way of doing right by those who help you build […]

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Let’s Keep It Simple…Oops

Don’t be afraid of adding a little complexity to your bonus compensation program. People are pretty smart, and they will buy-in to a structured program that makes logical sense and stimulates the right kind of behaviors from the team.

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How to Talk About Slicing Pie: The Blackjack Analogy

I spend most of my time thinking about equity splits and helping others create fair splits in their startup companies. In fact, I’d be willing to bet that there isn’t a single person on this planet who has put more thought into fair equity splits. I love the topic and look forward to continuing to […]

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Initial Slice Offering (ISO)

I’ve been doing a lot of research lately into Bitcoin and Initial Coin Offerings (ICOs) and, like many people, I still find them pretty confusing. I think, however, that in spite of the uncertainty, the future looks bright for digital currency as a tool for raising startup capital, especially for Slicing Pie companies. I still have much to learn. Today’s post covers some of my initial thoughts on the subject. I’m hoping fellow Grunts will post their own thoughts and ideas in the comment section.

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