Startup Professionals Musings

FEBRUARY 13, 2016

Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked. Name the three top ones, and present your sustainable advantage as well as barriers to entry for new startups.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

AUGUST 7, 2015

Large and growing markets imply a high startup growth potential, with high odds of scaling and success. First to market” is not sustainable by a startup. Startup team strengths and domain experience. This allows them to calculate burn rates, break-even points and forecast the company valuation over time.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Berkonomics

MARCH 21, 2019

If the business is not a startup, expect to supply income statements for the past several years as well, to emphasize trends in revenue and costs. Careful about “hockey stick” forecasts. And you should “know your numbers and be able to defend them” during early meetings with candidate investors. Projections for your future.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Startup Professionals Musings

AUGUST 13, 2012

Financial forecast and metrics. These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

MAY 13, 2011

Financial forecast and metrics. These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

APRIL 22, 2010

Financial forecast and metrics. These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Berkonomics

JANUARY 3, 2019

As with the fifty percent rule discussed last week (fifty percent of startups fail within two years), this rule is hard to find an author willing to be quoted as the source. Eighty percent of all businesses purchased by another company or by a new investor-operator fail to meet the stated expectations of the buyer after one year.

Acquisition 48

Acquisition Due Diligence Forecast Employee 48