Startup Professionals Musings

OCTOBER 7, 2022

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Be prepared to explain your business model. How much do you really need for the next 12 to 18 months?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

MARCH 11, 2016

Come with a product built and a proven business model. Angels are most interested to help you scale the business, once you have real customer traction and ready to break out. Remember that angel investors are buying equity in your business, so they are not impressed with a customer presentation.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

JANUARY 27, 2021

Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. Every angel looks to scale the business after you have funded product design, perhaps with friends and family. Opportunity sizing and financial projections must be credible.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

JUNE 7, 2020

Entrepreneurs need to document a process of responding to a market need, sizing opportunity, assigning a specific business model, and planning for marketing, sales, and customer satisfaction. Solo entrepreneurs, with a team of helpers, will be assumed to be a hobby rather than a business. Team building status and plan.

Entrepreneur 328

Entrepreneur Exit Strategy Metrics Operations 328

Startup Professionals Musings

NOVEMBER 4, 2011

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. Finalize your financial model. Close at least one initial customer.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Think of the next few sections of your plan as the overarching description of your practice’s business opportunity. Then you’ll think through your ideal customer , your competition , and your opportunities for growth.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Startup Professionals Musings

JANUARY 4, 2020

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Be prepared to explain your business model. How much do you really need for the next 12 to 18 months?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

ReadWriteStart

JUNE 1, 2020

Funding might be a need in some cases — but it’s not an absolute necessity. ? The business should be self-sustainable. The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Growth and expansion stages.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Steve Blank

NOVEMBER 18, 2016

It struck me as I watched the teams try to find how their technology would solve real customer problems, is that machine learning is following a similar pattern of previous technical infrastructure innovations. Each of our teams in this class followed the canonical Lean model: Articulate your hypotheses using the business model canvas.

Artificial Inteligence 318

Artificial Inteligence Lean Exit Strategy Startup 318

Startup Professionals Musings

SEPTEMBER 23, 2010

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. Finalize your financial model. Close at least one initial customer.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Reid Hoffman

JULY 23, 2020

This week, I’d like to turn to the question of how current market conditions affect the approach entrepreneurs should take towards their exit strategy. Those traditional investors ask, “What’s your business model?” That effort failed, and more than a year into Google’s history, there wasn’t a viable business model.

IPO 36

IPO Exit Strategy Acquisition Technical Review 36

Up and Running

JUNE 16, 2014

Make no mistake, you will need to have a business model or a business plan that shows just where you sit in relation to your competitors. This is where the ‘exit strategy’ comes in. An exit strategy is not your plan for when the business fails, but rather, your strategy for returning money to investors.

Exit Strategy 91

Exit Strategy Advisory Board Business Plan Portfolio 91

Startup Professionals Musings

AUGUST 27, 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). Exit strategy.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Duct Tape Marketing

APRIL 18, 2024

As a former business exit advisor, she crafts exit strategies, adding up to five figures to clients’ net profit monthly so they can focus on growth. You get the idea with Gusto, you can focus on the joy of running your business. It's no surprise that 94% of customers are likely to recommend Gusto 94.

Framework 59

Framework Sales Cycle Sales Hiring 59

Startup Professionals Musings

JULY 27, 2018

Unfortunately, customers look for value in solving their problem, and new technologies alone scare them, so these solutions don’t get bought by customers, or funded. In reality, there isn’t much overlap between the business pitch I expect, versus a product pitch. Business model showing costs, pricing, and margins.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Steve Blank

NOVEMBER 18, 2016

It struck me as I watched the teams try to find how their technology would solve real customer problems, is that machine learning is following a similar pattern of previous technical infrastructure innovations. Each of our teams in this class followed the canonical Lean model: Articulate your hypotheses using the business model canvas.

Artificial Inteligence 120

Artificial Inteligence Lean Exit Strategy Startup 120

Startup Professionals Musings

AUGUST 8, 2016

By profit, I simply mean offering a product or service to customers for a price that exceeds the total costs associated with the solution, thus providing some basis for recovering sunk costs and generating a return for stakeholders. Solve a painful problem for customers who have money to spend.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

Up and Running

FEBRUARY 10, 2021

When you put together a business plan, you have to spend time thinking about things like your target market , your sales, and marketing strategy , the problem you solve for your customers, and who your key competitors are. If this is true, then why bother writing a business plan at all? An exit strategy.

Business Plan 138

Business Plan Forecast Balance Sheet Exit Strategy 138

Startup Professionals Musings

JUNE 10, 2011

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). Exit strategy.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Women Entrepreneurs Can

JUNE 3, 2021

Once everything is in place, investing in a few online startup tools makes eminent sense as these tools help you in a variety of ways including marketing and customer service. Having shared values & vision also means you have thought about an exit strategy for your business.

Partner 52

Partner Technical Review Cofounder Georgia 52

Startup Professionals Musings

AUGUST 13, 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 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

AUGUST 7, 2015

When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business. In reality, they need a separate pitch about the business, carrying over only a slide or two about the solution. Remember, investors are buying into the business, not the product.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

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.

Founder Vesting 144

Founder Vesting Option Pool Exit Strategy Vesting 144

Startup Professionals Musings

MAY 28, 2016

Entrepreneurs need to document a process of responding to a market need, sizing opportunity, assigning a specific business model, and planning for marketing, sales, and customer satisfaction. Solo entrepreneurs, with a team of helpers, will be assumed to be a hobby rather than a business. Team building status and plan.

Exit Strategy 155

Exit Strategy Metrics Operations Cost 155

Up and Running

MAY 17, 2017

Even if you aren’t planning to sell, building your business thoughtfully and with an eye toward making it highly acquirable is an effective way to build a healthy business. Plus, you’ll always be prepared in case an opportunity or desire to sell arises in the future—it’s a smart idea to have an exit strategy.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92

Steve Blank

SEPTEMBER 14, 2009

In this time, building a successful business meant building a company that had paying customers quarter after quarter. It did not mean building a startup into a company to flip or hype on the market with no earnings or revenue, but building a company that had paying customers.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Startup Professionals Musings

MAY 19, 2010

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). Exit strategy.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Up and Running

MAY 4, 2015

Explain your plan for customer acquisition. Describe your revenue model. State your exit strategy. You could include a brief product demo that shows off your technology, or more details about your smart and efficient business model that you might not otherwise have had time for. Explain your solution.

Technical Review 60

Technical Review Entrepreneur Software Review Houston 60

Startup Professionals Musings

MAY 13, 2011

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 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

FEBRUARY 13, 2016

Just because your technology is exciting and potentially disruptive doesn’t mean you are ready to build a business. Investors want to hear about customers with money who have a painful problem that you can solve now. How does your business model make money? What is your specific solution and value proposition?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

DECEMBER 24, 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. Finalize your financial model. Close at least one initial customer.

Angel Investor 260

Angel Investor Intellectual Property Elevator Pitch Angel Groups 260

Startup Professionals Musings

JUNE 26, 2020

To be clear, I define a product specification as the technical definition of your product, to be used for development and testing purposes, with a quick business summary for context. Use non-fuzzy terms to quantify customer value. Provide specifics on the customer business model.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

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). Exit strategy.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Startup Professionals Musings

MAY 24, 2015

Entrepreneurs need to document a process of responding to a market need, sizing opportunity, assigning a specific business model, and planning for marketing, sales, and customer satisfaction. Solo entrepreneurs, with a team of helpers, will be assumed to be a hobby rather than a business. Team building status and plan.

Exit Strategy 120

Exit Strategy Metrics Operations Cost 120

Startup Professionals Musings

FEBRUARY 16, 2015

Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. Every angel looks to scale the business after you have funded product design, perhaps with friends and family. Opportunity sizing and financial projections must be credible.

Angel Investor 120

Angel Investor Accredited Investor Venture Capital Startup 120

Startup Professionals Musings

SEPTEMBER 5, 2016

Keep your focus on customers rather than investors. Even the best investors will dramatically increase your workload, with daily communication, agreement expectations, and business overhead. Investors expect nothing less than a full-time commitment, even in the early stages when the business model has not yet been proven.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Startup Professionals Musings

APRIL 22, 2010

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 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186