Gust

OCTOBER 6, 2011

In my conversations with people in the startup world – from angel investors through entrepreneurs and employees with vast startup experience – I often hear about their perceptions of the marketing role as being pretty limited to acquisition. Second – timely, cost-effective customer acquisition is a matter of life-or-death to most startups.

Acquisition 87

Acquisition Marketing CPA PPC 87

Gust

OCTOBER 19, 2014

The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition). This hit RIM (Research In Motion) a few years ago, and cost them $650M to recover. Applying for a patent is a negotiation.

Software Review 173

Software Review Software Technical Review Intellectual Property 173

Gust

AUGUST 10, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Financial projections for investors should always show an annual cost of goods sold and gross margins line, as well as revenue.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Gust

DECEMBER 24, 2012

New product startups rightfully begin with a heads-down focus on creating the ultimate product – whether it’s a new technology, a new look and ease of use, or a new low-cost delivery approach. Quantify the value and cost of acquiring every new customer. Image via Facebook. Remember, this is not a one-time effort.

Customer 166

Customer Startup Retention Differentiation 166

Gust

DECEMBER 23, 2011

Similarly, start calling VCs if your customer acquisition costs can only be recaptured over a substantial period of time. Get those pitchbooks ready if your idea is not genuinely defensible except by being the first kid in the pool and creating a network effect, or dominant brand, before others do.

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127

Gust

NOVEMBER 22, 2011

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. At this stage, you need investment bankers to negotiate a merger or acquisition (M&A), go private, or help you go public with an Initial Public Offering (IPO). Growth stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Gust

DECEMBER 27, 2012

You should know every metric regarding customer acquisition, conversion and retention. The expectation is that in an era of increasing technology and decreasing costs, you will be bringing them an operating company with at least some traction. You should know EVERYTHING about your business, product, customers and competition.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164