From my experience, idea guys often have little ability to manage cash flow or people. Without the proper partners in...Read More »
The first step in developing a capital strategy is to know your revenue projections. If you had the money and team you need, what can you sell and when? In developing a market strategy the...Read More »
It does not matter what world...Read More »
Learning to Pitch Before You Start Raising Capital
By Dr. Tony Ratliff
It only took about six months of deal flow and a handful of “pitches” before I realized that most entrepreneurs are really, really bad at “selling themselves” and “pitching” their ideas and companies to investors.
I cringe every time I listen to a great start-up idea or read a well-written business plan, and then watch in horror as...Read More »
The correct approach is to look at your cash flow projections and determine it from there. For a new startup the goal is to get to breakeven and beyond. For later stage companies the projections may address strategic...Read More »
An angel investor (or an angel investor group or private equity firm) should be more than just a liquid wallet. He/she should be a strategic member of your team. They...Read More »
Post-revenue, most businesses will find salaries (including benefits) falling somewhere between 30% and 55% of their net revenue. But what about pre-revenue companies that are looking to use early capital to launch? I read a...Read More »
I recently saw a business model that concerned me on this point. The SaaS application in the model was not cost effective for early stage customers – there are market alternatives that are offered for free that do just about...Read More »
Here are some additional points to consider when structuring a management team:
c. Beware of Scientist Syndrome. This is a business model killer. It is especially apparent in technology and science based businesses, but you see it in all types of professions and industries. Is the goal of the key leader to advance the technology or to develop a profitable business model? Is the goal of the...
2. Solid Management Team
I have heard it said that more businesses fail due to cash flow than anything else. I completely disagree. I say that more businesses fail due to management team issues than any other reason. If a company dies because of cash flow, it is usually because the wrong person was at the helm and poorly planning and/or making bad decisions – either market opportunity was not...Read More »
Proof of Scale and Proof of Commercialization (at Profit)
Following POC, you want to prove that your concept can scale under a viable business model. Proof of Scale and Proof of Commercialization (at profit) work hand in hand as each is often dependant on the other. POS refers to the ability for a concept to scale in terms of sellable units in the marketplace and business growth requirements....Read More »
Both are intended to solve the “Ability” stage of the business plan process and move the business into the "Meeting" stage:
Proof of concept is simply the proof that the business can develop a working prototype that...Read More »
a great article awhile back in Entrepreneur and thought
I should post the article for those in the formation stages of
their next business venture.
I can't stress enough how much time and energy it takes to launch a start-up, and just how much the success or failure of a budding new company rests on the people involved. I see it everyday as an Indiana technology lawyer involved in Indiana entrepreneurial law.
You can count on spending hours upon hours of the day with your business...
I am always happy with this structure – focus investors’ money on revenue generating activities rather than product development. I see...Read More »
This year's focus is more tailored to helping seed and emerging stage Indiana technology companies pursue excellence in developing their innovation, marketing their innovation and seeking funding for their innovation. As an Indiana tech lawyer these topics hit right at heart of the needs I have wrestled through with my clients.
I...Read More »