ReadWriteStart

JUNE 1, 2020

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. Any custom manufactured IoT device would require software development as well as hardware customization. Both of which are expensive and time-consuming.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

NOVEMBER 4, 2011

Remember to aim the content of both of these at investors, not customers. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Close at least one initial customer. Prepare an investment-grade business plan. Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

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. Here is where projections of cost, pricing, volumes and cash flow are critical.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Berkonomics

JUNE 22, 2023

Test yourself as to whether you can identify the size of your market niche, and whether you can overcome the many barriers to access customers within your niche. A strategic relationship with one or more of the largest customers? Can this business grow to above $20MM to $50MM in annual revenues? Where in industry life cycle?

Exit Strategy 114

Exit Strategy Technology Revenue Conversion 114

Startup Professionals Musings

SEPTEMBER 23, 2010

Remember to aim the content of both of these at investors, not customers. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Close at least one initial customer. Prepare an investment-grade business plan. Finalize your financial model.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Startup Professionals Musings

FEBRUARY 25, 2023

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. Most experts don’t recommend this approach as your default strategy anymore. You can kick-off your next startup.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

MAY 25, 2020

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. Most experts don’t recommend this approach as your default strategy anymore. You can kick-off your next startup.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

SoCal CTO

FEBRUARY 17, 2007

They are quite happy with a business that will turn into a profitable $20M company and dont necessarily need an obvious exit strategy. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. This is something Ive always wondered about.

Incubator 150

Incubator Technical Cofounder Southern California Los Angeles 150

Duct Tape Marketing

APRIL 18, 2024

With her expertise, she’s boosted hundreds of agencies to millions in revenue, attracting premium clients willing to pay 50-600% fees. 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. But that comes at a cost.

Framework 64

Framework Sales Cycle Sales Hiring 64

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. Clearly define the customer, channel, and revenue model associated with this solution. Solution and benefits.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

AUGUST 17, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Aggressive revenue projections and growth rate. That’s why investors want to hear about your exit strategy.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

AUGUST 27, 2012

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. 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. Exit strategy.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

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. Attracting business investors is as tough as attracting customers, but it’s a different challenge. Business model showing costs, pricing, and margins.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Startup Professionals Musings

MAY 13, 2011

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. Clearly define the customer, channel, and revenue model associated with this solution. Solution and benefits.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

JUNE 26, 2020

A business plan is the outward facing definition of the business you hope to drive with your hardware solution, with a hardware overview in the intro to highlight customer value and competitiveness. Use non-fuzzy terms to quantify customer value. Provide specifics on the customer business model. Budget time and dollars for each.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Startup Professionals Musings

MAY 28, 2013

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Aggressive revenue projections and growth rate. That’s why investors want to hear about your exit strategy.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

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. Productivity and repeatability is the hallmark of a good business, whereas a hobby usually assumes everything is custom built and personal.

Exit Strategy 155

Exit Strategy Metrics Operations Cost 155

Startup Professionals Musings

JUNE 10, 2011

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. 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. Exit strategy.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

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

Startup Professionals Musings

MAY 19, 2010

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. 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. Exit strategy.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Gust

AUGUST 5, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. Clearly define the customer, channel, and revenue model associated with this solution. Solution and benefits.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

AUGUST 10, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Aggressive revenue projections and growth rate. Thats why investors want to hear about your exit strategy.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Startup Professionals Musings

APRIL 22, 2010

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. Clearly define the customer, channel, and revenue model associated with this solution. Solution and benefits.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

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 every case, the relevant pitch needs to start by highlighting a real customer problem, then outlining a new solution, with all the features and disruptive technology.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

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. Productivity and repeatability is the hallmark of a good business, whereas a hobby usually assumes everything is custom built and personal.

Exit Strategy 120

Exit Strategy Metrics Operations Cost 120

Berkonomics

APRIL 13, 2017

Test yourself as to whether you can identify the size of your market niche, and whether you can overcome the many barriers to access customers within your niche. A strategic relationship with one or more of the largest customers? Can this business grow to above $20MM to $50MM in annual revenues? Where in industry life cycle?

Exit Strategy 116

Exit Strategy Technology Revenue Conversion 116

Gust

AUGUST 19, 2012

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. 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. Exit strategy.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Startup Professionals Musings

DECEMBER 24, 2012

Remember to aim the content of both of these at investors, not customers. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Close at least one initial customer. Prepare an investment-grade business plan. Finalize your financial model.

Angel Investor 260

Angel Investor Intellectual Property Elevator Pitch Angel Groups 260

Growthink Blog

NOVEMBER 10, 2017

But you'd certainly share the news that you launched your new website or reached $1M in annual revenues. To better understand your customer. An in-depth customer analysis is essential to an effective business plan and to a successful business. To document your revenue model. What is the company's exit strategy?

Business Plan 128

Business Plan Private Placement Exit Strategy Finance 128

Startup Professionals Musings

FEBRUARY 13, 2016

Investors want to hear about customers with money who have a painful problem that you can solve now. Investors are looking for a concise description of your product or service without technical jargon or fuzzy marketing terms with value quantified in customer terms. What are your forecasts for revenue, expenses and cash flow?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

SEPTEMBER 5, 2016

Every startup I know has pivoted at least once, so learning from your mistakes should be a positive experience, rather than a painful error that will cost you credibility. Keep your focus on customers rather than investors. Don’t quit your day job until the revenue is flowing. Keep your exit strategy options open as you learn.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

www.inc.com

SEPTEMBER 24, 2011

Exit Strategies. Strategy and Planning. Strategy and Planning >. Why Arizona Bay started taking stock from its customers instead of cash. Theres a huge opportunity cost in not taking equity," he says. Arizona Bay has also blended equity payments with revenue-sharing deals. Financing A Small Business.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

MARCH 7, 2015

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. Here is where projections of cost, pricing, volumes and cash flow are critical.

Preferred Stock 120

Preferred Stock Exit Strategy Equity Angel Investor 120

Gust

DECEMBER 16, 2012

Remember to aim the content of both of these at investors, not customers. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Close at least one initial customer. Prepare an investment-grade business plan. Finalize your financial model.

Angel Investor 179

Angel Investor Intellectual Property Elevator Pitch Angel Groups 179

Startup Professionals Musings

SEPTEMBER 12, 2014

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. Most experts don’t recommend this approach as your default strategy anymore. You can kick-off your next startup.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

David Teten

SEPTEMBER 23, 2017

Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. A number of analysts have particular focus on serving the customers of technology companies, e.g., Gartner and 451 Research. For example, some private equity funds are quantifying their exit strategy in a concerted way.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

APRIL 9, 2010

Yet a creative collaboration with your biggest competitor in the same industry may be the best opportunity for revenue and survival. Here are some examples of common alliances between competitors that are synergistic deals: Cost sharing and economies of scale. Also this competitor will have become a prime exit strategy alternative.

Partner 120

Partner Non-Compete Exit Strategy Affiliate 120