Gust

JANUARY 4, 2012

What kind of risk do we run of being put out of business by others’ IP rights ? Later stage companies have some additional concerns: What favorable impact could IP have for PR, marketing and investor relations purposes, or as an attraction to potential acquirors? Easier said than done!)

Intellectual Property 143

Intellectual Property IP Startup United States 143

Gust

AUGUST 24, 2014

The alternatives range from giving it away for free, to pricing based on costs, to charging what the market will bear (premium pricing). The implications of the decision you make are huge, defining your brand image, your funding requirements, and your long-term business viability. Product line pricing.

Revenue 184

Revenue Startup Retention Internet 184

Gust

FEBRUARY 9, 2014

Beyond the traditional new product or service model, you can always buy an existing business, purchase a franchise, join a multi-level marketing (MLM) company, or simply go out on your own as a consultant. Whichever business model you pick, you need to make a serious commitment to the effort, or you will likely fail.

Entrepreneur 172

Entrepreneur Business Model Government Employee 172

Gust

NOVEMBER 2, 2014

But from my perspective in really helping entrepreneurs, both fall short on several counts: Focus too much on the product, not enough on the business model. The key success factors of the business model (how a business survives and grows), management expertise, and financial projections will likely get overlooked.

Non-disclosure Agreement 160

Non-disclosure Agreement Intellectual Property Accredited Investor Equity 160

Gust

AUGUST 30, 2012

Team, Business Model, Traction, Customer Acquisition, Scalability, Defensibiity, Capital Efficiency, Churn, Time to Breakeven, Exit Strategy. Characteristics of the Market. Characteristics of the Venture.

Founder Vesting 144

Founder Vesting Option Pool Exit Strategy Vesting 144

Gust

AUGUST 12, 2012

A business plan is an “outward facing” document for external investors, or for C-level executives within your own company. The product plan tells your developers what to build, and the marketing team what to market. Market research. Market research and competition.

Product 150

Product Business Plan Differentiation Business Model 150

Gust

JANUARY 30, 2014

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

Cap Table 119

Cap Table API Valuation Startup 119

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. Not every good idea is a good business. Too little focus on marketing. Even viral marketing costs real money and time.

Intellectual Property 183

Intellectual Property Startup Viral Early Stage 183

Gust

OCTOBER 21, 2012

People and operational excellence have to converge in every business, large or small. Microsoft found this out when their market capitalization, once at $560B, had fallen in 2010 to $219B, allowing them to be passed by Apple, who grew from $15.6B Both had access to the same technology, people, and market. during that period.

Architecture 162

Architecture Startup Washington Operations 162

Gust

DECEMBER 20, 2011

In reality, a startup is a temporary organization designed to search for a repeatable and scalable business model. This means the brilliant idea you started with will change as you iterate and pivot your business model until you find product/market fit.” You need a combination of skills. What skills?

Angel Investor 93

Angel Investor Oregon Business Model Search 93

Gust

MARCH 5, 2014

In rare cases, one or both companies may ask the VC to serve as a neutral arbitrator, and help them come to a modus vivendi that works for both parties (although if this gets anywhere within the vicinity of market domination, it may verge on ‘restraint of trade’ and be illegal.).

Portfolio 121

Portfolio Business Model Engineer Search 121

Gust

AUGUST 19, 2012

The approach I recommend is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. Here are the ten slides you need: Problem and market need. Investors like $1B markets with double-digit growth rates.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Gust

AUGUST 5, 2012

Clearly define the customer, channel, and revenue model associated with this solution. Industry & market sizing. Start with the evolution of the overall industry, market segmentation, market dynamics, and customer landscape. Explain the business model. Marketing, sales, and partners.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

DECEMBER 28, 2011

The two major differences in the exit environment in the past decade are (1) the disappearance of the IPO market and (2) the rapidly increasing size of the average VC fund. As you may know, startups can go public on active foreign exchanges – such as Toronto’s TSXV and the London AIM market – but there’s a catch.

IPO 153

IPO Venture Capital Entrepreneur Angel Investor 153

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. This starts with positive thinking that your startup idea will work, but is a lot more. Burning desire.

Entrepreneur 182

Entrepreneur Business Model Startup Design 182

Gust

JULY 19, 2012

My first bet in this area would be Seedrs , a startup based in the UK (but founded by an American securities lawyer) that has been very involved in the legislative process so far, and really understands how the equity markets work. Almost by definition, however, they will be taking it in cautious steps.

Accredited Investor 144

Accredited Investor SEC Equity Early Stage 144

Gust

DECEMBER 16, 2012

All the conviction and market research in the world are no substitute for real customers paying real money. This is called “validating the business model.”. This must be someone who is willing to pay real money for your product or service. Free trials don’t count. Network to the maximum with investor connections.

Angel Investor 179

Angel Investor Intellectual Property Elevator Pitch Angel Groups 179

Gust

DECEMBER 27, 2012

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

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

Gust

SEPTEMBER 13, 2011

A startup is in the business of creating value from nothing – or, as Steve Blank describes it, “searching for a repeatable and scalable business model.” Large companies focus on protecting and expanding upon their existing successful business.

Startup 98

Startup Silicon Valley Reputation Community 98

Gust

SEPTEMBER 23, 2012

Yet, new technology can quickly blindside you, and market dynamics change, plus you need to broaden your opportunity. 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. Plan to spend money on marketing.

Forecast 188

Forecast Viral Social Network Business Model 188

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. This refers to the monetization or revenue model. The “free” model doesn’t capture much value. Value capture pivot. Engine of growth pivot.

Silicon Valley 187

Silicon Valley Architecture Startup Channel 187