Gust

AUGUST 10, 2014

Equally important, you need to make these projections first as goals for your own use, to convince the team as well as investors that you have a business which is achievable. Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Gust

AUGUST 19, 2012

Remember the goal is an overview presentation that will pique investor interest enough to ask for the business plan and a follow-on meeting, not close the deal on the spot. Every startup needs both a business plan and an investor presentation, completed before you formally approach any investors. Business model.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Gust

JANUARY 5, 2014

Your revenue model has to make sense. 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. I recently knew a founder whose sales pitch was always the next generation of his product, and he never understood why customers always decided to wait.

Business Model 171

Business Model Sales Customer Distribution 171

Gust

DECEMBER 16, 2012

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. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not.

Angel Investor 179

Angel Investor Intellectual Property Elevator Pitch Angel Groups 179

Gust

JULY 8, 2012

Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream. For VCs, early-stage means customer revenue is less than $10M. Super Angels.

Early Stage 177

Early Stage Finance Seed Stage Entrepreneur 177

Gust

MARCH 9, 2014

It’s not uncommon for me to see a startup business plan “mission” to be the “premier brand” for their product, yet their marketing budget in the financials is trivial. This combination will almost certainly get your plan tossed by potential investors, who understand all too well the need and cost for marketing in today’s environment.

Marketing 146

Marketing SEM Viral Social Media 146

Gust

NOVEMBER 3, 2013

In that context, I offer you my list of ten top startup failure causes, seen over and over again: No written plan. Don’t believe the old urban legend that a business plan isn’t worth the effort. 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.

Intellectual Property 183

Intellectual Property Startup Viral Early Stage 183

Gust

NOVEMBER 22, 2011

Funding of $250,000-$1 million is available from angels, if you have credentials and have done the homework of a good business plan, financial model, and executive presentation. 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.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Gust

DECEMBER 7, 2014

Entrepreneurs who plan to complete a business plan the first month, find an investor the second, and roll out a product the third month are just kidding themselves. 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.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

Gust

JULY 29, 2012

One of the biggest myths I still see in the community of new entrepreneurs is the assumption that “All I need is a good idea, and some investor will give me the big money I need to build the business.” In reality, investors fund good business plans, not big dreams. It’s all in the execution.

Bandwidth 155

Bandwidth Bootstrapping Equity Startup 155

Gust

OCTOBER 11, 2011

Use it in every networking situation and business conference introduction. The elevator pitch should be the first few paragraphs of your business plan, your executive summary, your investor presentation , and the first page of your web site. Outline the revenue model. A different message everywhere is no message.

Elevator Pitch 174

Elevator Pitch Startup Differentiation Distribution 174

Gust

JUNE 10, 2012

Establishing the legal structure for your business, registering trademarks, filing copyrights and patents, and drafting partnership agreements used to require extensive attorney fees and ongoing consultation. I now see and believe business plans that budget $1K for all this, versus a previous $20K or more. Facilities and staff.

Cost 139

Cost Burn Rate SEM Startup 139

Gust

NOVEMBER 28, 2011

Often I find that experienced investors flip to the management page of a business plan, even before they read the product description. Every investor is looking for the “dream team” of executives to put his money on. That’s how important the people are. What are investors looking for in the CEO and the rest of the top executives?

Startup 147

Startup Bootstrapping Social Network Internet 147