Gust

AUGUST 24, 2014

The revenue model you select is basically the implementation of your business strategy, and the key to attaining your financial objectives. So what are some of the most common revenue models being used by startups today? It’s great for customers, but not for startups, unless you have deep pockets. Freemium model.

Revenue 184

Revenue Startup Retention Internet 184

Gust

NOVEMBER 8, 2012

Many online business models would be eviscerated by laws like SOPA that seek to essentially deputize private companies as agents of content owners and law enforcement agencies, coerced into policing their own users (customers) at great cost in both dollars and resources. Healthcare Reform. Yes, really.

Silicon Valley 187

Silicon Valley San Francisco Intellectual Property Accredited Investor 187

Gust

AUGUST 22, 2012

One commonly used approach is to identify widely felt “pain points” in the target market; build a workable solution to address them using particularly effective or efficient means; and if the business model pencils out, work like crazy to execute, execute, execute.

Technical Review 172

Technical Review Egypt Morocco Russia 172

Gust

AUGUST 30, 2012

Team, Business Model, Traction, Customer Acquisition, Scalability, Defensibiity, Capital Efficiency, Churn, Time to Breakeven, Exit Strategy. Integrity, Passion, Startup Experience, Domain Expertise, Functional Skills, Leadership, Commitment, Vision, Pragmatism, Flexibility, Personality. Characteristics of the Venture.

Founder Vesting 144

Founder Vesting Option Pool Exit Strategy Vesting 144

Gust

JANUARY 30, 2014

Scalable business model. External validation (ideally traction and/or passionate customers). Viable business structure and cap table. Large and growing market. Real domain expertise. Provable product need. Competitive advantage. Platform/partnership/bizd ev/API strategy. Reasonable valuation.

Cap Table 119

Cap Table API Valuation Startup 119

Gust

DECEMBER 7, 2014

At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. Managing investors is a distraction from your core business. You will squeeze harder on your own dollars than investor dollars. You will be happier and under less pressure.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

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.

Intellectual Property 143

Intellectual Property IP Startup United States 143

Gust

OCTOBER 21, 2012

His focus is on repeatable practices to maximize business opportunities in large companies, but I’m convinced that these apply equally well to startups: Clearly define your value chain. Your value chain consists of customers, partners, vendors, internal systems, and your own team. Communicate effectively with the team and customers.

Architecture 162

Architecture Startup Washington Operations 162

Gust

AUGUST 12, 2012

Equally important, marketing and sales people should be able to identify benefits and marketing strategies, set prices, and validate a business model. Concurrently, or later, it’s necessary to build a separate business plan. Business model, executive team, marketing & sales, financials, and funding.

Product 150

Product Business Plan Differentiation Business Model 150

Gust

DECEMBER 20, 2011

I liked this from Steve Blank: The Startup Team , explaining why the team is so important: “In a perfect world you build your vision and your customers would run to buy your first product exactly as you spec’d and built it. You need a combination of skills. What skills?

Angel Investor 93

Angel Investor Oregon Business Model Search 93

Gust

AUGUST 19, 2012

Here is how and why it works, including a customer-centric quantification of the benefits. Define the characteristics of the overall industry, market forces, market dynamics, and customer landscape. Business model. Explain how you will make money and who pays you (real customer). Opportunity sizing.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Gust

MAY 28, 2012

It is a confidence bolstered by intelligence, preparation, and experience that your business model addresses a need in the market, provides a solution, and will beat the competitors. It’s hard to maintain all of the above if you don’t enjoy the subject area, the team, the challenge, and the customers. Burning desire.

Entrepreneur 182

Entrepreneur Business Model Startup Design 182

Gust

DECEMBER 16, 2012

Remember to aim the content of both of these at investors, not customers. They must amplify your “elevator pitch” to investors, as well as key points from the business plan and the financial model. Prepare an investment-grade business plan. Close at least one initial customer. Free trials don’t count.

Angel Investor 179

Angel Investor Intellectual Property Elevator Pitch Angel Groups 179

Gust

AUGUST 5, 2012

Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. This is not the place for a detailed product specification, but an explanation of how and why it works, including a customer-centric quantification of the benefits. Explain the business model.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

NOVEMBER 3, 2013

Business model doesn’t make money. You may have the solution to the world hunger problem, but if your customers have no money, your business won’t last long. Take heed of the words of an old country song, “if you don’t where you’re going, you might end up somewhere else.”.

Intellectual Property 183

Intellectual Property Startup Viral Early Stage 183

Gust

DECEMBER 27, 2012

You should know EVERYTHING about your business, product, customers and competition. You should know every metric regarding customer acquisition, conversion and retention. You should have a crystal clear understanding of your business model and your financials.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

Gust

SEPTEMBER 13, 2011

How could such a well-regarded, highly successful startup be so inept in its response to an entirely foreseeable customer risk/abuse incident that was guaranteed to happen sooner or later? The answer, I believe, lies in the “echo chamber” nature of Silicon Valley, early adopters, the startup community, and the tech business press.

Startup 98

Startup Silicon Valley Reputation Community 98

Gust

SEPTEMBER 23, 2012

Here are some simple examples of “smart” calculated risks that you should be working on: Deliver an innovative solution to a painful customer problem. Implement a new business model. Software as a service (SaaS) has now pretty much replaced the old licensing model, but offering it was a strategic risk for SalesForce.com.

Forecast 188

Forecast Viral Social Network Business Model 188

Gust

NOVEMBER 25, 2012

His popular book on this subject, “ The Lean Startup ,” lays out how today’s entrepreneurs use continuous innovation to create radically successful businesses. Eric espouses designing products with the smallest set of features to please a customer base, and moving products into the marketplace quickly to test reaction, then iterating.

Silicon Valley 187

Silicon Valley Architecture Startup Channel 187