article thumbnail

5 Steps To Get You From Your First Idea To A Business

Startup Professionals Musings

At least the first time around, it pays big dividends for an idea person to find a partner with the business skills you haven’t tested yet. Target measurements allow you to assess your business progress. A full plan may be no more than 20 pages. Take your time in moving from your idea to a business.

article thumbnail

8 Funding Proposal Red Flags Every Startup Can Avoid

Startup Professionals Musings

Undefined business model or very low gross margins. Certainly there are many other red flags that will discourage investors, but every entrepreneur will find that it pays big dividends to be proactive on the key items outlined here. All internal teams need to have relevant skills and experience.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

.   You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   First , dividends. Let’s start at the end.

article thumbnail

The Difference between Debt Financing and Equity Financing: Which Is Right For You?

YoungUpstarts

Banks offer commercial loans for businesses but they can be difficult to get for startups. They are for established businesses. You have to have a viable business plan with a good credit score and collateral to qualify. The investor owns a portion of your business and could potentially have decision-making power.

Finance 157
article thumbnail

4 Things You Won’t Regret Spending Money on When Starting Your Business

Up and Running

It’s no joke that the number of essential, necessary costs can be enough to make a new business owner’s head spin. Nonetheless, not all business costs are compulsory. However, some expenses are worth shelling out for, and will pay dividends down the road when the investment is made up front. Worthwhile expense #2: Branding.

article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

Jonathan Bragdon , CEO, describes Capacity as “a team of founders-turned-funders making non-dilutive, founder-aligned investments of $50-$300k in post-startup, post-revenue businesses planning to 2X revenues in 12-24 months. Any additional funds they take out of the business are considered dividends.

Equity 78
article thumbnail

Convenience is Key for Successful Service Businesses

Up and Running

Over the past decade or two, the most prominent business model that has yielded positive results in the service sector over time is one that has brought convenience to its client base. Planning and preparation, along with competent execution, will pay dividends down the road.