Gust

JANUARY 5, 2014

The real milestone, proving the business model, is that first product sold for full price to a total stranger, leaving him happy. Many of the Internet business plans I see these days say the service is free, and revenue will come later from a huge user base. You need a sales channel that works, and one you can afford.

Business Model 171

Business Model Sales Customer Distribution 171

Gust

AUGUST 17, 2014

Other elements of startup focus are a bit fuzzier, so let me zoom-in on some key ones here: Type of business model. Providing shoes for the poor is a laudable goal, but quite a different business than Zappos , which sells clothes profitably, and provides free shoes for the needy due to social consciousness.

Entrepreneur 182

Entrepreneur Technical Review Angel Investor China 182

Gust

AUGUST 30, 2012

Team, Business Model, Traction, Customer Acquisition, Scalability, Defensibiity, Capital Efficiency, Churn, Time to Breakeven, Exit Strategy. Size, Growth, Concentration, Geography, Demographics, Competition, Channels, Regulatory Environment, Technological Developments, Adjacent Markets, Characteristics of the Deal.

Founder Vesting 144

Founder Vesting Option Pool Exit Strategy Vesting 144

Gust

JANUARY 4, 2012

Most investors will assume that if the business plan is solid and a large market opportunity exists, there will be vigorous competition from other players. Large companies] win by locking competitors out of their sales channels. If you do manage to threaten them, they’re more likely to buy you than sue you.

Intellectual Property 143

Intellectual Property IP Startup United States 143

Gust

AUGUST 5, 2012

Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Industry & market sizing. Marketing, sales, and partners.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

NOVEMBER 3, 2013

The discipline of writing down a plan is the best way to make sure you actually understand how to transform your idea into a business. Business model doesn’t make money. A major resource is cash funding, but other resources, such as industry contacts and access to marketing channels may be more important for certain products.

Intellectual Property 183

Intellectual Property Startup Viral Early Stage 183

Gust

NOVEMBER 25, 2012

Pivots come in many different flavors, each designed to test the viability of a different hypothesis about the product, business model, and engine of growth. Most startups these days use one of three primary growth engines: the viral, sticky, and paid growth models. Channel pivot. Technology pivot.

Architecture 187

Architecture Silicon Valley Startup Channel 187