Gust

DECEMBER 15, 2013

Even in these cases, all other options should be explored first: Sales are strong – too strong. When you have invented a new technology, you need expensive models and testing, including samples for potential customers. If nothing else, these make good excuses for failure – no freedom, wrong guidance, etc. You need a prototype.

Bootstrapping 183

Bootstrapping Sweat Equity Entrepreneur Technical Review 183

Gust

DECEMBER 6, 2011

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.

Angel Investor 179

Angel Investor Venture Capital Valuation Software Engineering 179

Gust

JANUARY 4, 2012

In general, IP protection will do nothing to prevent others from independently developing something similar, copying the overall business model, targeting similar customers or end users, and perhaps even mimicking the product’s look and feel. Large companies] win by locking competitors out of their sales channels. trade secret).

Intellectual Property 143

Intellectual Property IP Startup United States 143

Gust

NOVEMBER 2, 2011

Product Rollout or Sales. For example, some investors would not fund a company without at least a minimum of customer feedback or intellectual property. Quality Management Team. Zero to $0.5 Sound Idea. Zero to $0.5 Working Prototype. Zero to $0.5 Quality Board of Directors. Zero to $0.5 Zero to $0.5

Valuation 79

Valuation Pre-Money Valuation Intellectual Property Southern California 79

Gust

AUGUST 5, 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. Marketing, sales, and partners. Solution and benefits.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

MARCH 9, 2014

In fact, the average spent by Inc 500 companies for sales and marketing expense continues to hover around 10% of overall revenues. Do something unique to get customer attention. This step requires thought because you need to identify what can set you apart from your competitors and how to retain customers.

Marketing 146

Marketing SEM Viral Social Media 146

Gust

SEPTEMBER 14, 2014

Startup leaders recognize the need for strong credentials to demonstrate competence to team members, customers, and investors. Otherwise, customers and investors will see new initiatives as merely change rather than progress. Customers want to see results. These are the hard parts. Creating shared context. Committing to action.

Technology 174

Technology Startup Leadership Global 174

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. Explain how you will make money and who pays you (real customer). Marketing, sales, and partners. Opportunity sizing.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Gust

NOVEMBER 18, 2012

Early customers and contracts in progress add value. Every customer contract and relationship needs to be monetized, even ones still in negotiation. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast. NewCo doesn’t have any of these yet.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Gust

JANUARY 30, 2014

External validation (ideally traction and/or passionate customers). Proven team (tech/product/design/mark eting/sales/domain/etc.). Competitive advantage. Platform/partnership/bizd ev/API strategy. Viable business structure and cap table. Reasonable valuation. And the attributes I look for in that entrepreneur are: Integrity.

Cap Table 119

Cap Table API Valuation Startup 119

Gust

DECEMBER 14, 2014

These authors argue effectively that the hard part of executing most strategies is changing human behavior – first the people on your team, then partners, vendors, and most importantly, customers. For example, more customer leads are predictive of more sales revenue later. Changing yourself is tough enough.

Entrepreneur 189

Entrepreneur Founder Revenue Startup 189

Gust

AUGUST 3, 2014

They hate sales, and don’t understand what making a profit even means. They love talking about their business and their product, and dream of having millions of customers. Creative and artistic. You have to give the creator some resources, time, and throw in some food once in a while, and a “completed design” will appear in due time.

Entrepreneur 165

Entrepreneur Algorithm Business Plan Design 165

Gust

MAY 29, 2012

You can’t have a $20 million sales estimate with 10 employees in the company and a few hundred thousand dollars of marketing expense. By far the best validation of a plan is actual sales made already. Second best are letters from future customers promising future business. . I want realistic expenses. And progress made.

Business Plan 174

Business Plan Forecast Channel Cost 174

Gust

JUNE 24, 2012

As an entrepreneur, you should assume none of your customers is like you, yet I find that most entrepreneurs assume just the opposite. Customers don’t have your technical base, the passion, and interest in your solution. By habit, people market to customers like themselves, because they know what they like and need.

Marketing 136

Marketing Database Social Media Media 136

Gust

AUGUST 12, 2012

Equally important, marketing and sales people should be able to identify benefits and marketing strategies, set prices, and validate a business model. Because this document is “outward facing” the tone and level has to change to be understandable by customers and investors. Market research.

Product 150

Product Business Plan Differentiation Business Model 150

Gust

OCTOBER 26, 2014

Use voicemail, a world-class website, and personal customer service, with small expenses, to beat your big competitors. As soon as you bring in investors, they force you to plan for an exit (merger or sale) in three to five years. Simply take enough to live on, but not to the point of your detriment. Act big, behave small.

Bootstrapping 176

Bootstrapping Startup Merger Salary 176

Gust

OCTOBER 11, 2011

Focus on customer benefits rather than features, indicating real pain, rather than just nice to have. A product may be great, but it won’t make a business if you don’t hit customers with money to spend. Giving the product away, or selling below cost may make it attractive to customers, but your business won’t be attractive.

Elevator Pitch 174

Elevator Pitch Startup Differentiation Distribution 174

Gust

NOVEMBER 15, 2012

In my own portfolio I have companies that are generally perceived to be extremely successful with high profile customers and lots of sales…but they just happen to have a liquidation preference ladder of $25 million!

Seed Stage 131

Seed Stage Hockey Stick Cap Table Liquidation Preference 131

Gust

JANUARY 12, 2014

For example, a result is not forty hours of work, but a prototype complete, partner contract signed, or first customer sale. Build your business plan and day-to-day operations around real results that are quantifiable and measurable. Focus and prioritize. There will always be more things to do than anyone has hours in a day.

Entrepreneur 171

Entrepreneur Hiring Employee Operations 171

Gust

NOVEMBER 22, 2011

For instance, if your company is only a few weeks old and you have zero customers and your product offering is still in design, don’t expect someone to hand over $10 million to fund your efforts. If your startup is at the wrong stage for the investor you are approaching, fishing for money is a waste of time for both of you. Growth stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Gust

DECEMBER 16, 2011

And, a bit misty-eyed, this old war veteran can actually remember the glory days: Venture capitalists would commit tens of millions for a startup to buy expensive infrastructure; hire sales and marketing teams as products were still being built; and lease out big slugs of office space for the coming hiring spree.

IPO 87

IPO .Net Social Network Mobile 87

Gust

JUNE 10, 2012

Sales and marketing costs. Now you can get a product built in China almost overnight with minimal up-front cost, with delayed payment based on first-customer order commitments. We all know how much costs have come down on computer hardware, computer software, printers, PDAs, high-speed internet access, servers, and security measures.

Cost 139

Cost Burn Rate SEM Startup 139

Gust

AUGUST 29, 2012

The market defining story explains the need, or want, or why-to-buy factor, defines the target customer, leads to credible market numbers, generates the marketing messages, and communicates a market to investors, so that they can visualize it, and sense it’s potential, in their own imagination. I see three essentials: .

Marketing 119

Marketing Social Media Sales Cycle Angel Investor 119

Gust

OCTOBER 14, 2011

Undisciplined change can sow chaos among your staff, and even worse, your customers. It instills confidence in your customers. Your customers should feel the same way. Nothing was more amazing than watching the press—and Apple customers– work themselves into a frenzy over what might be announced at the next MacWorld.

Product 70

Product PR Matching Engineer 70

Gust

OCTOBER 20, 2011

Marketing/Sales Channels/Partnerships 0-10%. Looking at the strength of the competition in the market, the target is weaker (75% of norm) but early customer feedback on the product is excellent (Other = 100%). The company needs some additional work on building sales channels and partnerships (80% of norm).

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Gust

JANUARY 12, 2014

For example, a result is not forty hours of work, but a prototype complete, partner contract signed, or first customer sale. Build your business plan and day-to-day operations around real results that are quantifiable and measurable. Focus and prioritize. There will always be more things to do than anyone has hours in a day.

Entrepreneur 70

Entrepreneur Hiring Employee Operations 70

Gust

DECEMBER 31, 2012

Customer service. Who better to run your customer service than an experienced professional with a little gray hair, who is firm but calm, soft-spoken, and credible around your customers? High-travel sales and buyer positions. Retail sales to Gen-X and Gen-Y. Executive Assistant (aka Secretary).

Advisory Board 177

Advisory Board Angel Investor Startup Equity 177

Gust

NOVEMBER 25, 2012

Eric espouses designing products with the smallest set of features to please a customer base, and moving products into the marketplace quickly to test reaction, then iterating. In the reverse situation, sometimes a single feature is insufficient to support a customer set. Customer segment pivot. Customer need pivot.

Silicon Valley 187

Silicon Valley Architecture Startup Channel 187

Gust

NOVEMBER 24, 2013

If the panel is looking for value and return for the investor, skip the technology pitch, or customer sales pitch. Let your adrenalin help you deliver an outstanding performance, but trying to wow investors with jokes or stories of unending success will not move you up a level. Dress appropriately and professionally.

Technical Review 171

Technical Review Entrepreneur Angel Groups Audience 171