Gust

article thumbnail

A Valid Business Model Requires Real Customer Sales

Gust

Of course, one sale isn’t really enough, so you need to get the first customer to recommend you to a second, and make sure the rate of sales ramps up quickly enough to keep the business alive and growing. If you lose money on every sale, it’s hard to make it up in volume. Your revenue model has to make sense.

article thumbnail

Gust Blog - Thoughts on startups by investors that fund them

Gust

Last weekend I caught Mashable announcing that Ebook Sales Surpass Hardcover in the U.S. But in the real world, when you get to business numbers, sales are not accounts receivable and revenue isn’t income and people who read financial projections need to know that an apple is an apple, and not an orange. . Subscribe by email.

Startup 180
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Funding Gap

Gust

A medical device company, on the other hand, may need cash resources to pay for FDA testing, designing the prototype, manufacturing the product, establishing an inventory of the devices and establishing marketing and sales channels for the products. Most high-impact companies need substantial cash resources to sustain their rapid grow.

article thumbnail

Intellectual Property for Startups in the Real World

Gust

Sales and marketing plans , lists of prospects, supplier and subcontractor relationships, pricing data, media buying plans and strategies, etc. Large companies] win by locking competitors out of their sales channels. Building and populating databases of user-supplied information and content (copyright). trade secret).

article thumbnail

10 Things I Look for When Reading a Business Plan

Gust

I want a forecast that starts with specifics like channels or traffic and conversions or segments and builds up. Tell me what it costs to produce one unit, what the channel pays for it (if channels are relevant) or what the buyer pays for it, what it costs to ship, and so on. . I want realistic expenses. And progress made.

article thumbnail

These 10 Key Elements Make a Business Plan Fundable

Gust

Clearly define the customer, channel, and revenue model associated with this solution. Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Industry & market sizing. Here is also a good place for a rollout timeline with key milestones.

article thumbnail

3 Essentials for Selling Your Marketing Plan to Investors

Gust

Believable paths, triggers, and channels. For business-to-business and direct selling, be able to show that you understand the expenses involved and the sales cycle selling to large organizations. . Defensibility. Don’t trust trademark or copyright to defend you by themselves.

Marketing 119