May 13

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6 Tips for Tech Startups, From Those Who Know

Have solid founders

Make sure everyone is fully committed. It goes without saying, unless it doesn’t. The founders need to be solid, no wavering, no hesitation or doubts. It’s painful for a startup to lose a founder, and it doesn’t look good to investors.

Burn Rate and Profit

Look for ways to get to profitability as fast as possible. Look for government grants and funding programs to help your cash position.

Investors and Fundraisers

Build a credible 3 year forecast and a financial model that has reasonable and easy to understand assumptions. Prospective investors will want to see all of it.

HR

Hire ‘T’ people – those who have a lot of depth in one area and some experience in many others. Focus on keeping the team as small as possible so you have room for the compensation that will make your people stay. Get the right people on the bus in the right seats!

Market Side

You investors will want to know who your target market is, the total serviceable market, how you plan on reaching it, planned methods, your strategy for customer acquisition, the whole nine yards. Build your marketing plan early and update often.

Think about the exit!!

How will you exit? Is your goal to be acquired? IPO? What are the requirements for your options. Who could be your strategic acquirers?


Tags

advice, startups


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