I am not sure if this is the correct place to ask these questions, but I have been working at a large corporation for most of my career. I was recently introduced to a person who is running a startup, and we set up a time next week to discuss an opportunity there. What questions would you want answers to if you were considering such a dramatic career change?
Hello fellow entrepreneurs,
I hope that your experience could help me with this one.
I have an investor who is willing to invest via a convertible note in our startup. The sole hiccup is that she is willing to sign the note today, but wire the funds in September (she's waiting for a liquidity event).
Should I add a clause to the convertible note?
Is there a risk of having a signed note and never receiving the funds?
My startup has not launched yet, but essentially we offer consulting for residential landscaping/home improvement projects. We are signing with company ‘partners’ who are essentially who we recommend to our clients to use.
We will have two types of referral charges to partners. (% paid to us from their contract with the client that we bring them)
Type 1- “Full Referral”. So in these situations we actually are providing not only a customer, but also completing the prior consulting type work the company would typically need to. Things like vetting and approving the client, scheduling with the client, making a basic plan for what they want, etc. This work is only slightly more effort than we are already doing for the client. So when we can do this we’re going to ask for 15-20% depending on the partner.
Type 2- Is a much more basic referral, where all we are doing is giving them a client. Planning to ask for 8%
What do you think about these rates? Are we asking too little/too much? I know since we’re new we can always ask for low now and go higher when we’re successful but yeah. I know this is late to ask to, I’m just worrying about it and stressed. First startup first big deal you know? Thank you!