Startup Professionals Musings

JANUARY 9, 2021

In addition, current investors want to see every startup go public or be acquired, as an exit event, so they can get their due return for that investment which has been tied up for the last few years. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

Up and Running

MARCH 14, 2018

Customer acquisition: Marketing and sales strategy. How will you reach your customers? Your financials should easily allow you to calculate your customer acquisition costs. Your exit strategy. This is usually one of the most skipped sections of an investor pitch and a full business plan.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Startup Professionals Musings

MARCH 3, 2021

For example, if you have ever watched the Shark Tank show on TV, they always ask about the cost of customer acquisition. It still amazes me that some entrepreneurs seem totally at a loss on this question, or customer retention rate, or even margin expectations. Present a viable exit strategy for investors to cash out.

Exit Strategy 406

Exit Strategy Merger Angel Investor IPO 406

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. This alternative is often paired with a personal no-exit strategy. IPO – public company initial public stock offering.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Hearpreneur

OCTOBER 10, 2023

2- Yes, to build a customer-centric business model Photo Credit: David Brewer We based and built it around the idea that our industry could, and should do better and that was the model that we were going to implement that idea as our core objective. Thanks to Evan Tunis, Florida Healthcare Insurance ! #2-

Business Plan 126

Business Plan Jordan Entrepreneur Florida 126

Up and Running

SEPTEMBER 19, 2018

The problem is that they sell extremely similar products, and customers in the area are becoming more adventurous and seeking variety. You provide extensive customer service and a variety of rewards options for customers. You provide extensive customer service and a variety of rewards options for customers.

Business Plan 154

Business Plan Technical Review Forecast Exit Strategy 154

Growthink Blog

DECEMBER 27, 2017

Customer Analysis Goal of customer analysis section: Convey the needs of your customers and show how your company’s products/services satisfy those needs. Define your customers precisely. How many customers fit the definition? Where are these customers located? Identify the needs of these customers.

Venture Capital 129

Venture Capital Business Plan Technical Review Private Placement 129

Startup Professionals Musings

MARCH 10, 2023

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 288

Exit Strategy Metrics Operations Cost 288

Startup Professionals Musings

OCTOBER 8, 2023

Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. Angels need to see a proven business model, with a working prototype and preferably a real customer or two. Opportunity sizing and financial projections must be credible.

Accredited Investor 265

Accredited Investor Venture Capital Exit Strategy Syndicate 265

Up and Running

JANUARY 2, 2013

Customer Acquisition : This is usually one of the most skipped sections of an investor pitch and a full business plan. How will you reach your customers? Your financials should easily allow you to calculate your customer acquisition costs. How much will it cost? How will you measure success?

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

YoungUpstarts

SEPTEMBER 19, 2018

I started with a custom t-shirt printing company, branched out into a creative agency and then spun out a software solution from my t-shirt business that you see today as EMERGE App. Secondly, I get a flood of emails, chats and messages from customers and prospects every day. Or look for another revenue generating angle.

South America 101

South America Software Review Thailand Vietnam 101

Startup Professionals Musings

OCTOBER 7, 2022

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. If you have a good idea, but haven’t started yet, only friends, family and fools will likely be interested.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

JANUARY 7, 2013

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. Use friends, family, and angels, if possible, to get a product, revenue, and customers first before the VC connection.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Startup Professionals Musings

MARCH 11, 2016

Angels are most interested to help you scale the business, once you have real customer traction and ready to break out. Remember that angel investors are buying equity in your business, so they are not impressed with a customer presentation. Assemble a team with the requisite expertise and experience.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

SEPTEMBER 28, 2015

Instead, find and quantify the specific demographics of the subset that your solution best fits, and target all your features and messaging to those customers. A near-term customer value proposition. In all cases, you need customer support, formal processes and training in place. Solution production and support.

Exit Strategy 120

Exit Strategy Technical Review Distribution Viral 120

Startup Professionals Musings

JUNE 7, 2020

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.

Entrepreneur 328

Entrepreneur Exit Strategy Metrics Operations 328

YoungUpstarts

JUNE 9, 2018

Between choosing location in new cities to creating an exit strategy after you attain success, penetrating a new market requires a strategic plan. Research these three key customer boundaries for information on each market segment: Demographics. Customer habits. Map Out an Exit Strategy. Psychographics.

Jacksonville 188

Jacksonville Due Diligence Exit Strategy Marketing 188

Up and Running

AUGUST 28, 2018

Then you’ll think through your ideal customer , your competition , and your opportunities for growth. Your funding ask and exit strategy, if applicable. Positioning : Describe how you will present your company to your customers with your positioning statement. Problem and solution. Your operations plan. Financial plan.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Growthink Blog

APRIL 13, 2011

Interestingly, I'm a Tiny Prints customer. So, I became a customer. The process of preparing your company for sale is called "exit strategy planning." We recently formalized our exit strategy planning consulting service. the online seller of personalized cards, invitations, stationery and photo books.

Exit Strategy 69

Exit Strategy Intellectual Property Acquisition Stock 69

YoungUpstarts

JANUARY 10, 2018

Profile Your Customer Base. Another element that affects a business’s sellability is the state of its customer base. More sellable companies will typically have ‘better’ customers than ones that need a little more time to mature into a company that’s ready to change ownership. Another important metric is churn.

Valuation 108

Valuation Technical Review Exit Strategy Metrics 108

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? Some great ideas just cannot be made into a product at a reasonable enough price to attract customers.

Exit Strategy 114

Exit Strategy Technology Revenue Product 114

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

OCTOBER 14, 2016

If you don’t yet have a hundred investors knocking on your door, it’s time to put more focus on viral marketing, closing customers, and exponential growth. Credible yet flexible exit strategy. When top tier investors compete for a piece of the action, the price can go up exponentially. Keep working on increasing the momentum.

Intellectual Property 120

Intellectual Property Valuation Exit Strategy Merger 120

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. If you have a good idea, but haven’t started yet, only friends, family and fools will likely be interested.

Preferred Stock 337

Preferred Stock Startup Exit Strategy Equity 337

Startup Professionals Musings

JANUARY 27, 2021

Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. Angels need to see a proven business model, with a working prototype and preferably a real customer or two. Opportunity sizing and financial projections must be credible.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

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

Steve Blank

NOVEMBER 18, 2016

It struck me as I watched the teams try to find how their technology would solve real customer problems, is that machine learning is following a similar pattern of previous technical infrastructure innovations. Get of the building and test those hypotheses using customer development. Exit Strategy.

Artificial Inteligence 318

Artificial Inteligence Lean Exit Strategy Startup 318

mashable.com

MARCH 20, 2014

Whats your exit strategy? Before accepting an offer with a startup, ask what their exit strategy is, and make sure youre on board. In addition, the prospective employee can decide if his or her goals align with theirs. Bobby Grajewski , Edison Nation Medical. If theyre all about acquisition, ask about time frame goals.

Technical Review 103

Technical Review Software Review Exit Strategy San Francisco 103

Up and Running

AUGUST 16, 2017

Firms that want to innovate with a focus on customers often hold small meetings with the potential end users where they describe the project and then ask users for their opinions. Startups and small businesses can offer more customized salary packages than large multinational corporations. No exit strategy for firing lazy co-founders.

Business Plan 127

Business Plan Hockey Stick Cofounder Salary 127

YoungUpstarts

FEBRUARY 20, 2015

Facts: A startup does not necessarily have to begin with an exit strategy in mind. Discover an audience of eager buyers, and then focus on customer segmentation. Intensely focus on customer feedback to refine your ideas about what they want to buy until you can speak directly to this unfulfilled need. What is a Startup?

Cofounder 100

Cofounder Montana Startup Seed Capital 100

Austin Startup

OCTOBER 23, 2019

As the cost of starting a company goes down over time, VC’s have become more than just money providers— they also help entrepreneurs gain customers and grow their teams. Instead of stressing about frazzled customers, use that passion to reflect on your work and continue modifying and improving.

Fractional VPE 49

Fractional VPE Austin Artificial Inteligence Fractional CTO 49

Gust

SEPTEMBER 12, 2011

Respect for the exit. I don’t care that much about the specifics of the exit strategy, because things change too fast and exits are 3-5 years in the future. I don’t want to hear “we don’t care about an exit strategy because we want to do this forever.” A great market story. Scalability.

Technical Review 70

Technical Review Software Review Angel Investor Exit Strategy 70

Reid Hoffman

JULY 23, 2020

This week, I’d like to turn to the question of how current market conditions affect the approach entrepreneurs should take towards their exit strategy. That gave us the power to choose our exit strategy. Going public allowed us to better tell our story to our users and customers. You can listen to that here.

IPO 36

IPO Exit Strategy Acquisition Technical Review 36

YoungUpstarts

SEPTEMBER 9, 2019

You are meant to get the testimonials, the happy customers, the great business relationships, and then pivot into making sure your business has enough capital to survive economic recessions, internal issues, savings for your own personal retirement, health care, black swan events, you name it. No Exit Strategy.

Exit Strategy 161

Exit Strategy Startup Bootstrapping Social Media 161

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

Hearpreneur

OCTOBER 5, 2018

It really started as an in-house software solution to address the stock woes that I had with my custom t-shirt printing business. Spreadsheets sort of worked for a while but it didn’t scale with my t-shirt business and it certainly didn’t help me to invoice my customers on time or avoid an overstocked situation.

Software 55

Software Management Entrepreneur Vietnam 55

Up and Running

MAY 1, 2014

Every business is solving a problem for its customers and filling a need in the market. Who is your ideal customer? If you can show that your potential customers are already interested in—or perhaps already buying—your product or service, this is great to highlight. Describe the problem you are solving in the market.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163