ReadWriteStart

OCTOBER 2, 2021

And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. Even if you have a long-term exit strategy, keeping your business as an LLC protects your interest as a founder for as long as you wish.

Technical Review 158

Technical Review LLC IPO Stock 158

Startup Professionals Musings

JULY 5, 2023

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). This normally means more than 30 employees, and more than $1 million in revenue. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

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. Your friends and family are really the only answer until you have a significant revenue stream. Identify the right people in the right venture firms.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Growthink Blog

DECEMBER 27, 2017

Detail all revenue streams. Be sure to include all revenue streams. Depending on the type of business, these may include sales of products/services, referral revenues, advertising sales, licensing/royalty fees, and/or data sales. Provide a clear exit strategy. Be consistent with your pro-forma statements.

Venture Capital 129

Venture Capital Business Plan Technical Review Private Placement 129

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. To be fundable, fifth year revenue projections need to be in the $20-$100 million range. Opportunity sizing and financial projections must be credible.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

Startup Professionals Musings

MARCH 10, 2023

External investors expect a documented business plan, with clear targets on funding needed, use of funds, revenue projections, return potential, and exit strategy. Even if you are not requesting outside funding, I would expect a clear process for sourcing and managing the investment you plan to apply.

Exit Strategy 288

Exit Strategy Metrics Operations Cost 288

Up and Running

JANUARY 2, 2013

Your Revenue Model : Investors tend to care about this slide the most. Your Financial Projections : Show what you’re projecting in revenue (per product) over the next three to five years. Ideally, you have check marks across the top for every category, and your competitors lack in key areas to show your competitive advantage.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

Startup Professionals Musings

OCTOBER 14, 2016

Premium ventures need real traction, such as 100 million users, 10 million in revenue, or brand recognition around the world. Additional defensibility elements that unicorn investors look for include speed of implementation, rate of revenue and user growth, and exceptional team strength and leadership.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

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. How much do you really need for the next 12 to 18 months? Here is where projections of cost, pricing, volumes and cash flow are critical.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

OCTOBER 12, 2020

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). This normally means more than 30 employees, and more than $1 million in revenue. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

Up and Running

SEPTEMBER 19, 2018

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Your funding ask and exit strategy, if applicable. Exit strategy : Needed if you’re seeking investment. Target market: Who is your ideal buyer? Be specific. Competition: Who else offers similar services?

Business Plan 154

Business Plan Technical Review Forecast Exit Strategy 154

ReadWriteStart

OCTOBER 2, 2021

And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. Even if you have a long-term exit strategy, keeping your business as an LLC protects your interest as a founder for as long as you wish.

Technical Review 78

Technical Review LLC IPO Stock 78

YoungUpstarts

SEPTEMBER 19, 2018

Or look for another revenue generating angle. Also, find a mentor who has done something similar and discovered an exit strategy for their business. ” Secondly, if you can’t answer the first question consistently then you should quickly look for another market or opportunity.

South America 104

South America Software Review Thailand Vietnam 104

YoungUpstarts

JANUARY 10, 2018

After all, your clientele is what brings in the revenue and sets up the expenses, so they remain one of the most important elements of your company. A more numerous customer base, of course, means higher revenues and a bigger market presence, but it also says there’s less room within the market for the company to expand.

Valuation 122

Valuation Technical Review Exit Strategy Metrics 122

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. Map Out an Exit Strategy. Finally, map out an exit strategy if your company does or does not become successful in the space.

Jacksonville 189

Jacksonville Due Diligence Exit Strategy Marketing 189

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. To be fundable, fifth year revenue projections need to be in the $20-$100 million range. Opportunity sizing and financial projections must be credible.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

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. This alternative is often paired with a personal no-exit strategy. You can kick-off your next startup.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

NOVEMBER 4, 2011

It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. In most cases, a Microsoft Excel spreadsheet is adequate, with projection formulas for revenue, costs, and cash flow over the next five years. Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

JUNE 7, 2020

External investors expect a documented business plan, with clear targets on funding needed, use of funds, revenue projections, return potential, and exit strategy. Even if you are not requesting outside funding, I would expect a clear process for sourcing and managing the investment you plan to apply.

Entrepreneur 328

Entrepreneur Exit Strategy Metrics Operations 328

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Your funding ask and exit strategy, if applicable. Exit strategy : You only need this if you’re seeking outside investment. Do they self-pay or use insurance? Be specific. Team: Who is on your management team?

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

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. How much do you really need for the next 12 to 18 months? 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

Can this business grow to above $20MM to $50MM in annual revenues? Is there an exit strategy for the investor(s) over time? Building a great business to create wealth for the entrepreneur at exit, means thinking of the exit strategies from the beginning.

Exit Strategy 114

Exit Strategy Technology Revenue Conversion 114

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. prioritize speed over efficiency) when you believe you can build strategic value, even if there are many unknowns and uncertainties around the revenue model.

IPO 36

IPO Exit Strategy Acquisition Technical Review 36

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. These usually play a role in the very early stage of your business, primarily pre-revenue. Reasons for funding. ? Incubators and Accelerators. Government programs.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 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.

Framework 60

Framework Sales Cycle Sales Hiring 60

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. This alternative is often paired with a personal no-exit strategy. You can kick-off your next startup.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Steve Blank

NOVEMBER 18, 2016

While these acquisitions have teams of great researchers, they rarely contribute actual revenue generating products (because most never reached that stage when they were acquired.) Exit Strategy. Exit Strategy was building the penultimate planning tool. I had all that in mind as we watched our teams present.

Artificial Inteligence 318

Artificial Inteligence Lean Exit Strategy Startup 318

Startup Professionals Musings

JANUARY 5, 2011

Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A). To some, an exit strategy sounds negative.

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Startup Professionals Musings

SEPTEMBER 23, 2010

It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. In most cases, a Microsoft Excel spreadsheet is adequate, with projection formulas for revenue, costs, and cash flow over the next five years. Finalize your financial model.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Up and Running

MAY 17, 2017

Plus, you’ll always be prepared in case an opportunity or desire to sell arises in the future—it’s a smart idea to have an exit strategy. A business that is growing in revenue and earnings and trending upward will be more desirable to a potential buyer than a business that is declining. million in sales revenue.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92

Startup Professionals Musings

DECEMBER 28, 2018

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). This normally means more than 30 employees, and more than $1 million in revenue. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

Startup Professionals Musings

AUGUST 13, 2012

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. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

AUGUST 27, 2012

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. Project both revenues and expense totals for next five years, and past three years. Exit strategy. What is the timeframe for the exit? Business model.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

YoungUpstarts

DECEMBER 24, 2018

You should consider more than just the purchase price and the potential revenue-generating potential of your property; you’ll also need to consider the ongoing maintenance costs. Have an exit strategy. This will help you make better decisions in the moment. Consider ongoing maintenance.

Exit Strategy 134

Exit Strategy Finance Cost Security 134

Startup Professionals Musings

AUGUST 17, 2014

Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year. In other words, revenue projections are not the place to be too conservative or wildly optimistic. That’s why investors want to hear about your exit strategy.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

SEPTEMBER 30, 2015

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 120

Exit Strategy Startup Valuation Acquisition 120

Startup Professionals Musings

MAY 13, 2011

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. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290