This presentation walks you through the different considerations you need to make as an entrepreneur evaluating funding needs. Whether you are seeking funding for a non-profit or establishing a new tech venture, this overview is designed to help you determine the right approach for your particular situation.
Falcon Invoice Discounting: Empowering Your Business Growth
Funding strategies to go the distance
1. Hi
Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
Harvard innovation lab
#startupsecrets
www.mjskok.com
STARTUP
SECRETS
An insider‘s guide to unfair competitive advantage
Funding strategies to go the distance
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
1
2. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Agenda
• Many ways to fund your startup
– from angels to accelerators
• Develop a funding strategy
– Your particular needs?
• even raise money ?
– Explore the options
• Initial funding
• Trajectory to stay funded
• Remove the mystique of VC
– Attracting
– Process
• Case example: Endeca – Steve Papa, founder
– Details can be found here
2
3. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Sex, Relationships & Money
This could get complicated, but it
needn‘t!
3
4. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Raising money is like sex
• Everyone wants to know
about it
• Few people talk about it
openly
4
5. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Raising money is like sex
• Everyone wants to know
about it
• Few people talk about it
openly
• People are afraid to ask…
5
6. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Everything you always wanted
to know about raising money *
* but were afraid to ask…
6
7. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Raising money is like sex
• Everyone wants to know
about it
• Few people talk about it
openly
• People are afraid to ask…
• It‘s fun once you get it!
7
8. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Typical sources:
•
Equity
– Angel
– Accelerators
– Seed, Venture Capital
•
Including Strategic / Corporate investors
– Growth, Private Equity
– Public Markets
•
Other
–
–
–
–
•
Bootstrap
Friends & Family
Debt
Grants, subsidies, off balance sheet
Alternatives
– e.g. Crowdfunding
•
•
Business: e.g. AngelList
Products/Services: e.g. Kickstarter
8
9. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Funding strategy
• Should you even raise money?
– If you don‘t know = the answer is no!
– Do the work first
• Example reasons for a ―no‖
–
–
–
–
No need!
Personal: risk aversion, lifestyle, control
Business: Small potential
Other: not for profit, or research
9
10. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Overview
Ideation Confirmation Creation Validation
Repeatability
Scalability
Profitability
Predictability
Decreasing RISK
Increasing VALUE
10
11. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
The 2 best times to raise capital
• With all the POTENTIAL…
– Or
• Plenty of PROOF !
11
12. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Overview
Ideation Confirmation Creation Validation
Repeatability
Scalability
Profitability
Predictability
Decreasing RISK
Increasing VALUE
12
13. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Crisis?
What crisis ?!
13
14. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Overview
Ideation Confirmation Creation Validation
Repeatability
Scalability
Profitability
Predictability
Decreasing RISK
Increasing VALUE
14
15. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Overview
Ideation Confirmation Creation Validation
Repeatability
Scalability
Increasing VALUE
Profitability
Predictability
15
16. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Overview
Ideation Confirmation Creation Validation
Repeatability
Scalability
Profitability
Predictability
Decreasing RISK
Increasing VALUE
16
17. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Angel
• $ wide variety:
– a few thousand to a few million
– Convertible debt or equity
• Individuals
– Generally affluent
– Experienced advice
• Angel networks
–
–
–
–
Networks of connections
Professionally organized - cohesive
Fund centric model
Clarity and speed of process
17
18. Hi
Harvard innovation lab :
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
#innovationlab
Evolution of Angel Investing
•
Accessing Angel
Investors:
CommonAngels Fund III
Who knows you
Stage; total capital
need
– Domain focus / fit
– Portfolio
diversification
$13M ($33M under mgmt)
Stage
–
–
Size
Seed, early stage
Sectors
Software, Internet, Digital Media,
SaaS, Cloud, Mobile
Geography
Boston, New England, and NYC
Management
Two General Partners and an 8person Investment Committee
18
19. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Portfolio Companies
19
20. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Seed…
• Seed spray and pray
Or
• Seed to A
20
21. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Seed Capital
• seed2A or seed2BE?
• Agile, it‘s not just for
engineering
• Think like an investor
• Local or express - preserving exit
options
• Software today is different
21
22. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Seed to A: Confirmation
• Problem
– ―A problem well stated is a problem half solved‖*
• Ideally 4U – see ―Value Proposition‖
• Potential
– Market opportunity
• Product
– Specification
• Team
– Identification
*Charles Kettering, head of research for GM
22
23. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Accelerators
• 4 hats: founder, investor, vendor, donor
• Best are exclusive (YC, TechStars)
• Short time, short money
$18k for 6% equity (optional $100k note)
12 week program
• Strong results
@reedsturtevant
23
24. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
TechStars Boston – $2M fund
24
25. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
TS Boston 2011
• TS invested $500k
• 100x follow on, 2 yrs
• $46M by others
25
26. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Strategic Partnering
Carmichael Roberts
• Identify large companies that need your
technology or products
– Find the internal champion—this is critical!
• Convince them that you can increase the time
to market with their help
– $$$ and expertise
• Carve out an area to work on exclusively with
them
– Royalty on final products
26
27. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Government Support
• Unemployment remains a huge issue in the
U.S.
– Local, State and Federal levels
• Response:
– Programs to stimulate jobs
– Via new ideas & companies
• Find them:
– Grants: money given without any need to repay
– Tax Credits: keeps money in your business
– Special Loans: like grants with small payback
27
28. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Non-Profit Businesses 501c3
• Philanthropy - often best capital source
– Foundations
– HNW individuals
– Large companies
• Can still build a business similar to a for-profit
– Partner with for-profit, if needed
– Reward through bonuses not equity
• If profitable path needed for a particular product line?
– Do not force it!
– License out or spin off the business
28
29. Harvard innovation lab :
Hi
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
#innovationlab
Strategic / Corporate investors
•
Their motivations?
– Business relationship
– Financial return
– Hedging?
•
Your motivations?
– Is this on your roadmap?
•
Or are you being tempted by the $?
– What does this enable that you otherwise wouldn‘t have
•
•
•
Market access
Credibility
Whole product
– What does this limit?
•
•
•
Other strategic partners?
Exit
Business relationship first
– Skin in the game
29
30. Hi
Harvard innovation lab :
Startup Secrets :
Company Formation
@mjskok
#innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
30
What is right for you?
Intense
Capital
Efficient
Small
Potential
Large
30
31. Hi
Harvard innovation lab :
Startup Secrets :
Company Formation
@mjskok
#innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
31
What is right for you?
Intense
Capital
Efficient
Small
Potential
Large
31
32. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Venture Capital
• Seed: ~$100k to $1-3m
– Seed to A or Pray?
• A to IPO
– $Millions, Multiple rounds
• Stage dependent participation, involvement
– Active (board seat)
– Passive (follow ―lead‖ investors)
32
33. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Expectations of your VC?
•
•
•
•
Operating experience?
Investment experience?
Hands on / off?
Thoughts…
–
–
–
–
–
Team & board building
Remove roadblocks
Reveal opportunities to accelerate
Strategic insight
Access to resources, network
33
34. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Sex, Relationships & Money
This could get complicated, but it
needn‘t!
simplified
34
35. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
VCs receive ‗000s of plans
35
36. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
This is what happens to most…
36
38. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Target, be selective and focus
Fit: Geography, Sector, Stage
Portfolio: Complementary, competitive?
Partner(s)
Track record
Capital, free capital, reserves
38
39. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Build a relationship
You could be partners for several
years…
39
40. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Triangulate ways to connect
•
•
•
•
Find someone who knows the VC
Get a warm introduction
Interact on line
Use your initiative!
40
41. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Process
Run your own…
41
42. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Process framework
The VC
You
•
•
•
•
•
•
•
•
•
Research
Connect
Meet
Motivate
Diligence
Fit check
Pitch
Legal
Celebrate (briefly!)
•
•
•
•
•
•
•
•
•
Thesis
Qualify
Meet
Prioritize
Engage
Socialize
Partner meeting
Final diligence
Fund
42
43. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
First connection: Who, what, why?
• Make a connection
• Establish
– Who are you (relevant experience)
– What do you do (uniquely well for who)
– Why does it matter (market opportunity)
• Investors often have ADD
– (not value add – Attention Deficit Disorder!)
– Limit agenda, control the discussion, get the first
meeting !!
43
44. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
First meeting
Tell your story…
See ―Getting behind the perfect pitch‖
44
45. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Process – build momentum!
The VC
You
•
•
•
•
•
•
•
•
•
Research
Connect
Meet
Motivate
Diligence
Fit check
Pitch
Legal
Celebrate (briefly!)
•
•
•
•
•
•
•
•
•
Thesis
Qualify
Meet
Prioritize
Engage
Socialize
Partner meeting
Final diligence
Fund
45
46. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Incomplete stand outs are better than
complete stand ups!
•
We looking for outstanding:
– People
– Technology or other disruption
– Market opportunity
•
One outstanding of the above literally stands out vs. all good, but none
great
•
We don‘t expect complete
–
–
–
–
–
•
Team
Product
Value prop
GTM plan
Business Model
Entrepreneurs don‘t need all the answers!
– Self aware, listening, leaders…
46
47. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Dating and Validating
Why diligence is so important to YOU
too!
47
48. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Dating - evaluating investors:
•
•
•
Everyone‘s money is the same color
Get to know the partnership and their portfolio
This is NOT an arranged marriage! Pick your partner.
– Level of insight and experience
– Track record is great but it‘s history
– Talk to others who have worked with them
•
•
Will they be a balance for you?
Good self-aware mentor?
– Find someone who is genuinely motivated to set you up for success.
– If you don‘t have comfort, and personal chemistry,
•
•
Keep looking!
See LinkedIN article
– http://www.linkedin.com/today/post/article/20130206211336-1893586-who-arethe-best-venture-capitalists-pure-investors-or-operators?trk=prof-post
48
49. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Validating - the VC‘s work
• Get to know the team
– (Time, References etc)
• Understand the business
– (value prop, biz model)
• Check under the hood
– (eg Expert opinion on Tech)
• Validate assumptions
– (GTM, speak to customers, partners)
49
50. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Process – term sheet timing…
The VC
You
•
•
•
•
•
•
•
•
•
Research
Connect
Meet
Motivate
Diligence
Fit check
Pitch
Legal
Celebrate (briefly!)
•
•
•
Term sheet? •
•
•
Term sheet?
•
•
•
Thesis
Qualify
Meet
Prioritize
Engage
Socialize
Partner meeting
Final diligence
Fund
50
51. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
The Deal
“The process is the
deal”
Rich D’Amore
51
52. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Funding strategy questions
• First question
– How much do you need?
52
53. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
How much do you need?
•
•
•
•
Run the numbers
Build the assumptions
Assess the dependencies
Define the milestones
53
54. Harvard innovation lab :
Hi
Startup Secrets :
Company Formation
@mjskok
#innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
Financials
•
P&L, Cash Flow
–
•
6 quarters for cash flow, requirement
For sizing the business, overall capital requirement (informs investor for their
reserves)
–
Annual P&L, CF up to 5 years thereafter,
– Highlighting if applicable
– Cash flow positive
– Breakeven
Suggested information / detail as needed for the above
–
–
–
Headcount
Bookings
Revenue
•
–
–
Gross Margin
Expenses
•
–
–
May need to break out things like Services depending on your business
Major categories like R&D, Sales, Marketing, G&A shown as needed
Profit/Loss
Cash
54
55. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Realistic optimists?
55
56. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Funding strategy questions
• First question
– How much do you need?
• Second question
– How much do you want?
56
57. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
How much do you want?
• Enough to build real value
• Define the milestones
•
•
•
•
•
Key hires
Product beta, ship
First customers
Channel partners
Etc…
• 18 months of runway typically
57
58. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Funding strategy questions
• First question
– How much do you need?
• Second question
– How much do you want?
• Final question
– What should you raise?
58
59. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
What should you raise?
• One strategy (dilution sensitive, risk tolerant)
– Raise just what you need
– Just before you need it ?
• Another strategy (dilution insensitive, risk
intolerant)
– Raise more than you need
– Well before you need it
• Either way
– Timing is everything so plan
– Assume the unexpected
59
60. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Factors
• Predictability of your business
–
–
–
–
Your execution
Market adoption
Cash flows (business model)
Potential outcome (risk / return)
• Competitors‘ balance sheets
• Valuation…
60
61. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Valuation
The sixty four million
dollar question…
61
62. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Valuation vectors
62
63. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Don‘t just value – evaluate…
Always be one round ahead in your thinking
• Proof (Metrics, Milestones per earlier)
– Customers, Partners, GTM, BizModel, Product
• Allow for
– Unknowns
– Time to fundraise
• Capital to capitalize!
63
64. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Ultimate exit potential (if you must!)
• Potential acquirers
– Their motivations
• Recent transactions in the space
– $ paid and valuations basis
• Independent beyond IPO
• Comparable valuations
– Data for these like revenues, growth rates, market cap
64
65. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
―ABC: Always Be Closing‖
• Build relationships
between financing
rounds
• Always ready to close
65
66. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
The most important capital
you‘ll raise…
Human capital
Invest in it with your option
pool!
66
67. Harvard innovation lab :
Hi
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
What really matters
•
•
•
•
Investor fit
Amount of capital raised
Human Capital (option pool)
Timing
(To clear the bar: Clean Terms)
67
68. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Raising money is like sex
• It needn‘t be
complicated
• It‘s fun when you get
it!
• So pick your passion
not your poison
68
69. Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
#startupsecrets
www.mjskok.com
Thank you…
•
•
•
•
Maia Heymann @MaiaHeymann
Reed Sturtevant @ReedSturtevant
Jeffrey Beir @jbeir
Carmichael Roberts
• Steve Papa
– Common Angels
– TechStars
– Seed2A
– NB Venture Partners
– Endeca
*Learn best practices from Endeca Founder Steve Papa here.
69
70. Hi
Hi
Harvard innovation lab :
#innovationlab
Michael J Skok :
Startup Secrets :
Company Formation
@mjskok
Harvard innovation lab
#startupsecrets
www.mjskok.com
STARTUP
SECRETS
An insider‘s guide to unfair competitive advantage
Funding strategies to go the distance
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
70
Hinweis der Redaktion
Problems worth solving are usually 4U …UnworkableUnavoidableUrgentUnderservedMVP, MVS
There may be many ways to express your unique positioning, but I’m a believer in pictures - in case you hadn’t already figured that out ;) So here’s the kind of simple picture I recommend using to clearly position yourself. The key to this particular diagram is the axes you choose. Suffice it to say you want to end up in the top right, positioned to win in a unique whitespace. Here bubble sizing is for relative size of competitors a,b,c,d.Catch me in person and I'll tell you the real key is to find a way to explain why the competitors just can't cross the barriers in this diagram to even enter the top quadrant. Then you know you're really onto a winner. - examples would be the shift from on premise to in the cloud, or scale up to scale out, or on premise to SaaS/multi tenant etc.It's a subject unto itself for a drill down, but you need to be able to get across the white space you have identified
There may be many ways to express your unique positioning, but I’m a believer in pictures - in case you hadn’t already figured that out ;) So here’s the kind of simple picture I recommend using to clearly position yourself. The key to this particular diagram is the axes you choose. Suffice it to say you want to end up in the top right, positioned to win in a unique whitespace. Here bubble sizing is for relative size of competitors a,b,c,d.Catch me in person and I'll tell you the real key is to find a way to explain why the competitors just can't cross the barriers in this diagram to even enter the top quadrant. Then you know you're really onto a winner. - examples would be the shift from on premise to in the cloud, or scale up to scale out, or on premise to SaaS/multi tenant etc.It's a subject unto itself for a drill down, but you need to be able to get across the white space you have identified
Financial planning is a specialist skill though, and few entrepreneurs have it. It's an example of where we can often help introduce the right resources to get your plan together.Outer years are directional only – to show how big the business can be, how the model works, how growth and profitability can be thought about
Show clarity of milestones and thinking around how to achieve what is in your controlRecognize the need for humility in regard to what you can’t control = often the market and timingIt turns out that most entrepreneurs are over optimistic – thinking along the blue lineOf course if you came in and pitched the black, boring line, you will not likely attract funding. And if that’s what you really think your business will do it may not be appropriate for VC funding anyway.Whereas most businesses take longer to take off than people think and if they are successful can exceed expectations. See the red line.In the end no one can really predict all this, but it helps if you can be a “realistic optimist” and plan somewhere in between and adjust along the way – eg the green line.