Should Every Entrepreneur Expect or Aim for "Hockey Stick Growth?"

Small Business Force

Virtually, every business plan that's ever been presented to the investor community, invariably, has that fabled "hockey stick growth" period where suddenly revenue jumps exponentially. Hockey stick growth" is like going viral � good luck with that!

Forecasting Models: What You Need to Know

Up and Running

Why do entrepreneurs sometimes resort to the “hockey stick forecast,” especially when they pitch to investors? I first heard the term in the 1980s, at lunch with a venture capitalist friend, when he said he was “tired of all those hockey stick forecasts” he was getting from startups.

How Blacklane went from one city to over 250 around the world

The Next Web

We asked these companies to tell us the data backed story on how key decisions were made, which growth hacks led to the much loved hockey stick curve, and how this impacted their company.

How Typeform became the world’s most popular online form creator

The Next Web

We asked these companies to tell us the data backed story on how key decisions were made, which growth hacks led to the much loved hockey stick curve, and how this impacted their company.

How MAG created the ‘Good Times Factory’ and reached over 100 million players

The Next Web

We asked these companies to tell us the data backed story on how key decisions were made, which growth hacks led to the much loved hockey stick curve, and how this impacted their company.

5 Keys To Minimizing The Burn Rate For Your Startup

Startup Professionals Musings

Your goal is that magical breakeven point and hockey-stick profit-growth curve. Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall.

How Typeform became the world’s most popular online form creator

The Next Web

We asked these companies to tell us the data backed story on how key decisions were made, which growth hacks led to the much loved hockey stick curve, and how this impacted their company.

How to hustle your way to growth

The Next Web

With the advent and proliferation of “growth hacking”, many products are launching with hopes of leveraging data, A/B tests, and viral loops to manufacture a hockey stick growth curve.

What Makes a Sales Forecast Credible?

Up and Running

So if your numbers are here, going up in a hockey stick—and let’s just say this is your hockey stick—and your marketing expenses go up, and how do I do? So for me, what makes a sales forecast credible? It starts with product market fit.

Desirable growth from a startup: AirBnB case study

The Equity Kicker

AirBnB has delivered on the proverbial hockey stick growth that I imagine they had in their pitch deck back in 2010. The chart above shows the number of guests AirBnB has hosted each summer for the last five years. It was on Techcrunch this morning. It’s an amazing chart.

Top Startup Mistake: Unrealistic Forecasts

Up and Running

When I asked the standard “How are you,” he answered: “If I see another hockey stick forecast this week, I’m going to throw something at somebody.”. That was so long ago that I had to ask him to explain the hockey stick metaphor.

5 Steps To Maximizing Your Startup Cash Flow Runway

Startup Professionals Musings

Your goal is that magical breakeven point and hockey-stick profit-growth curve. Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall.

Launch: The 2-Hour Audio Documentary of a Startup

Software By Rob

There is no champagne-popping, no hockey stick growth, and no overnight success. I’ve just released a 2-hour audio documentary chronicling the story of building and launching my latest startup, Drip. Launch.

Audio 67

The consistency of Amazon’s revenue growth is amazing

The Equity Kicker

As you can see from the chart below Amazon has delivered on the proverbial hockey stick that startups put in their business plans, and they’ve done it at serious scale. Amazon just posted strong Q1 results and investors sent their share price up 11%.

6 Growth Barriers Most Startups Don’t See Coming

Startup Professionals Musings

Every entrepreneur thinks he can relax a bit after his business model is proven, funding is in place, and revenues are scaling as projected up that hockey-stick curve.

6 Growth Slowdowns That Can Quickly Lead To Disaster

Startup Professionals Musings

Every entrepreneur thinks he can relax a bit after his business model is proven, funding is in place, and revenues are scaling as projected up that hockey-stick curve.

5 Sure-fire Ways to Bomb Your Investor Pitch

Up and Running

Present a “hockey-stick” financial growth model without sharing your numbers behind your numbers (a.k.a. If I had a nickel for every pitch I saw where the financial projections grow in the shape of a hockey stick, I could have funded my last startup!

What are the regulatory barriers preventing the emergence of a liquid market for equity in seed stage startups?

Gust

And there are others that people think are teeny little wannabes with a dozen or so employees…that have $25 million in highly profitable revenues with hockey stick growth and zero debt! Parts of the answer are that (a) there are enormous regulatory requirements relating to secondary markets, and (b) there are no analysts tracking private company stocks.

10 Common Dilemmas That Derail Many Entrepreneurs

Startup Professionals Musings

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback.

10 Tough Quandaries That Lead Entrepreneurs Astray

Startup Professionals Musings

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback.

10 Actions To Make Sure Your New Business Will Scale

Startup Professionals Musings

Organic growth (reinvesting profits only) will not allow you to build the “hockey stick” growth curve desired by premium buyers at exit, or financial analysts positioning you for public stock sale.

Sales Forecasting: A Curated List of Our Best Resources

Up and Running

Here, you’ll learn what not to do when forecasting sales, and how to build a forecast on realistic sales projections—rather than the dreaded “hockey stick” forecast. When it comes to starting and managing a business, forecasting your sales is essential.

Investors Measure Entrepreneurs By Cashflow Mileage

Startup Professionals Musings

Your goal is that magical break even point and hockey-stick profit-growth curve. Cashflow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall.

Is Your Business Ready For Curves In The Road Ahead?

Startup Professionals Musings

Every entrepreneur thinks he can relax a bit after his business model is proven, funding is in place, and revenues are scaling as projected up that hockey-stick curve.

Giving up the ghost early

David Cohen

The hockey stick doesn’t emerge quite like you thought it would. There is four times as much seed capital in the venture market this year as there was 1 year ago. Because of this, it’s easier to attract seed funding than it has been in the past. I’ve noticed a disturbing new trend and I think it’s related. Startups are “quitting” when the first year doesn’t go as planned.

Investors Love To Fund Solutions That Are Scalable

Startup Professionals Musings

Organic growth (reinvesting profits only) will not allow you to build the “hockey stick” growth curve desired by premium buyers at exit, or financial analysts positioning you for public stock sale.

8 Common Business Plan Mistakes

Up and Running

Hockey stick” shaped growth projections. This article is part of our Business Planning Guide —a curated list of our articles that will help you with the planning process! What are the most common mistakes when writing a business plan ? Here is my list of the ones to make sure you avoid.

10 Tips For Building The Most Scalable Startup

Startup Professionals Musings

Organic growth (reinvesting profits only) will not allow you to build the “hockey stick” growth curve desired by premium buyers at exit, or financial analysts positioning you for public stock sale.

Bootstrapping Is Much More Fun Than Investors

Startup Professionals Musings

Investors have spread the word that you can’t get “hockey-stick” growth without a large cash infusion.

6 Reasons Startups Should Skip the Big-Bang Launch

Startup Professionals Musings

All investors want to see real evidence that the dogs will eat the dogfood before they give any credibility to your hockey-stick projection curves.

How to Pitch to Investors in 10 Minutes and Get Funded

Up and Running

If your financial chart shows “hockey-stick growth,” be sure to explain what happens to cause those inflection points. Image via WOCinTechChat. I know what it’s like to pitch to investors—both angels and venture capitalists.

Telling Startup Stories With Data

ReadWriteStart

The "Hockey Stick" is a Great Story, Don't Get Me Wrong. The "hockey stick" is a pretty familiar visualization for startups. You have to be able to tell a good story. I mean that as a general rule. i'm a folklorist after all, right?).

Twitter Link Roundup #308 – Terrific Reads for Small Business, Entrepreneurs, Marketers, and Designers!

crowdSPRING Blog

Good insight … Navigating The Make-Or-Break Years As You Create Hockey Stick Growth [link]. For hundreds of years, people have been worried that technology will replace people. Yet at every step, technology has also helped to create jobs.

Twitter Link Roundup #308 – Terrific Reads for Small Business, Entrepreneurs, Marketers, and Designers!

crowdSPRING Blog

Good insight … Navigating The Make-Or-Break Years As You Create Hockey Stick Growth [link]. For hundreds of years, people have been worried that technology will replace people. Yet at every step, technology has also helped to create jobs.

10 Dilemmas Every Startup Founder Must Deal With

Startup Professionals Musings

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback.

Launch: The 2-Hour Audio Documentary of a Startup

Software By Rob

There is no champagne-popping, no hockey stick growth, and no overnight success. I’ve just released a 2-hour audio documentary chronicling the story of building and launching my latest startup, Drip. Launch.

Audio 36

Failed Entrepreneur Liveblogs Implosion Of His Tech Startup

Up and Running

If only we would: “Make feature X free” “Stop focussing on revenue, someone else will pay the bills” “Grow $VANITY_METRIC so you can show a hockey stick at demo day and look good” “Cut out that pesky client that generates 80% of your revenue, they’re a distraction on the road to executing $OUR_BIG_VISION” We drank the Kool-Aid and went all-in.

Angel Investment Criteria

SoCal CTO

More likely, you'll be back for more money in less than 2 years, saying what everyone says: "it's taking longer than we thought" Investors won't believe your numbers anyway, so your over-sized hockey stick betrays your naiveté. I’m planning on going to a Tech Coast Angels mixer tomorrow and the topic for me is whether there is angel funding out there for startups that don’t meet classic VC models.

NPV 182

8 Reasons Business Plans Fail That No One Wants to Talk About

Up and Running

For example, missing crucial deadlines for finishing the business plan, or drawing hockey stick profit projections can repel potential investors. As a full-time editor and academic mentor at an academic writing service, I have read hundreds of business plans over the years.

But Aren’t Financial Projections Always Wrong Anyhow?

Gust

Hockey stick sales forecasts are cool when they’re based on some justifiable logic. It’s a common question: Why bother with financial projections? After all, they are never right, almost always inflated, and generally a waste of time. Right? Do investors even read them? And if so, why? I saw a great answer to that question in Pitching a VC: Why Financials Matter , posted earlier this month by David Hornik on his Ventureblog.

Why The Haters are Wrong About Growth Hacking

Both Sides of the Table

“Growth hacking perpetuates this myth that you can magically achieve hockey-stick growth by using short-term “hacks.” “ I have always encouraged teams to think about growth as daily blocking-and-tackling rather than a dark art.

Top 10 Business Plan Mistakes #4: Lowball Pricing

This is going to be BIG.

Its easy to get high on your own supply as a startup—watching hockey stick growth on an initial launch, knocking down a big biz dev deal, but the road is long and hard no matter who you are.

Traction for Your Startup: How to Get It & How Much is Enough

ReadWriteStart

For startups targeting consumers, "investors want to see 'hockey stick' adoption rates which imply consistent or increasing growth rates on a percentage basis," says Davis. You could have the greatest idea for a startup in the world.