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. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Royalty based investment.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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. Investors know that the fun of a startup turns into managing production processes, sales processes, and personnel in a few years.

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. Investors know that the fun of a startup turns into managing production processes, sales processes, and personnel in a few years.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

YoungUpstarts

DECEMBER 24, 2018

Real estate agents are much more familiar with the property sale dynamics in your location, and they’ll probably have access to far more properties than you could find on your own. How much will it cost? Have an exit strategy. This will help you make better decisions in the moment. Consider ongoing maintenance.

Exit Strategy 149

Exit Strategy Finance Cost Security 149

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Marketing, sales, and partners. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

AUGUST 27, 2012

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Marketing, sales, and partners. Exit strategy.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

JULY 27, 2018

Business model showing costs, pricing, and margins. Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. Customized marketing strategy and realistic sales plans. “If

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. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Marketing, sales, and partners. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

JUNE 10, 2011

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Marketing, sales, and partners. Exit strategy.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

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. Marketing, sales, support, and service operations. Solution development and delivery. Team building status and plan.

Exit Strategy 155

Exit Strategy Metrics Operations Cost 155

Startup Professionals Musings

JUNE 26, 2020

For example, “We just patented a new battery technology that will cut your smartphone charge time and cost in half.” If possible, quantify these in non-technical business terms, such as dollars saved or replacement costs over time. They want to see revenue to share in the return. Use non-fuzzy terms to quantify customer value.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

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. Remember you can’t sustain a business or social cause with no revenue or profit.

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. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Marketing, sales, and partners. 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. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Marketing, sales, and partners. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

APRIL 22, 2010

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Marketing, sales, and partners. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. Specific elements of your marketing and sales plans. If we build it they will come” is not a marketing and sales strategy.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Gust

AUGUST 19, 2012

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Marketing, sales, and partners. Exit strategy.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

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. Marketing, sales, support, and service operations. Solution development and delivery. Team building status and plan.

Exit Strategy 120

Exit Strategy Metrics Operations Cost 120

Startup Professionals Musings

JANUARY 16, 2011

It has been at least a decade since going public via an Initial Public Offering (IPO) has been considered a credible exit strategy for startups. Rightly or wrongly, public ownership often lends prestige and credibility to the company in its sales efforts, general public relations, and the execution of its future strategies.

IPO 223

IPO Social Media Media Exit Strategy 223

Startup Professionals Musings

FEBRUARY 13, 2016

The business model has to clearly define who is your customer, market penetration expected, how much customers pay versus total costs and the investment required to sustain cash flow. What are your specific marketing and sales plans? 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. 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

David Teten

SEPTEMBER 23, 2017

Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. I previously posted a detailed presentation with sales technology tools useful for B2B sales. is an AI bot which helps companies refine their sales pitch to VCs. Pitchbot.vc 3) Originate investments.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. Pricing Strategy. Exit Strategies. Strategy and Planning. SALES & MARKETING. Theres a huge opportunity cost in not taking equity," he says. He prefers to work with companies that are building Web-based applications and have relatively low start-up costs.

Arizona 40

Arizona Equity Iowa Venture Capital 40

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 document your revenue model. Documenting the revenue model helps to address challenges and assumptions associated with the model. What is the company's exit strategy? Probably not.

Business Plan 128

Business Plan Private Placement Exit Strategy Finance 128

ReadWriteStart

APRIL 2, 2012

For example, are they looking for an increase in sales or in net revenue? What's your exit strategy? Do your investors have their own exit strategies? But as in any marriage, things don't always go smoothly. And if things get ugly, you can end up in court instead of living happily ever after.

Exit Strategy 118

Exit Strategy Matching California Salary 118

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. Investors know that the fun of a startup turns into managing production processes, sales processes, and personnel in a few years.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

YoungUpstarts

MAY 7, 2015

For example, in most third-party sales with a business broker or investment banking firm, a commission or “success fee” will be charged as a percentage of the sales price. Many ESOPs are as small as 12-15 employees with less than $1 MM in annual revenue. ESOPs generally increase the after-tax proceeds of a sale.

Stock 100

Stock Employee Private Equity Valuation 100

www.virtuosimedia.com

MARCH 8, 2012

If the idea was reliant on ad revenue for profit, it quickly becomes apparent that there will be no incoming money at all. In addition to cost quotes, also ask for time quotes so you can get a feel for how long the project should take to implement. Research the cost of advertising your product. At this point, everyone loses.

Technical Cofounder 41

Technical Cofounder Cofounder Technical Review NDA 41

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. Up-sell related products after the initial sale.

Partner 120

Partner Non-Compete Exit Strategy Affiliate 120

Mike Michalowicz

JANUARY 8, 2015

I’ve sold two companies, and the sales were vastly different experiences, with wildly different results. When I was approached about the sale of my first company, I wasn’t looking to sell. Fast forward a few years to the sale of my second company. My first sale – the most profitable one – took two months.

Intellectual Property 60

Intellectual Property Investment Bankers Exit Strategy Sales 60

Up and Running

MAY 1, 2014

Marketing and Sales Plan. What marketing and sales tactics will you be using? Highlight the key aspects of your financial plan, ideally with a chart that shows your planned sales, expenses, and profitability. Marketing and Sales Plan. You can look at your costs and then mark up your offering from there.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Startup Professionals Musings

JUNE 2, 2013

The single most important ingredient of success is not the idea, but having a team in place that has impeccable integrity, can iterate the product quickly, pivot the business model as necessary, and keep costs down in the process. This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Startup Professionals Musings

APRIL 27, 2016

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. Investors know that the fun of a startup turns into managing production processes, sales processes, and personnel in a few years.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Up and Running

NOVEMBER 12, 2018

The subscription box industry is growing rapidly thanks to a steady revenue model and tapping into people’s love for surprises. Marketing and sales plan. Financial summary : Project your revenue for the first few years. Creating a buyer persona puts you in the customer’s shoes to guide marketing and sales decisions.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

Startup Professionals Musings

SEPTEMBER 28, 2015

Common failures I see along these lines include: solutions that are "nice to have" but don't address painful problems; a business model that lacks a means for bringing in revenue; and a founder who has turned a blind eye toward his or her competitors. Validated pricing and a sufficient revenue stream.

Exit Strategy 120

Exit Strategy Technical Review Distribution Viral 120

Startup Company Lawyer

MAY 4, 2009

Startup companies consume resources intelligently, put people to work in efficient ways, and produce market driven products at lower costs. The application fee is $50, which only partially offsets costs associated with processing applications. June 23rd, 2009: Create a revenue model for your business. Exit Strategies.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Up and Running

AUGUST 19, 2015

Yet, in our haste to make a sale, we often fail to ask ourselves this question at the outset. In my business, I always tell my clients that they are going to get increased revenue and profitability opportunities, enhanced prestige in their markets, and the chance to significantly reduce their sales cycles.

Small Business 60

Small Business Audience Exit Strategy Sales Cycle 60