Are you a successful business?

Three of the most important things startups need to focus on / demonstrate if they are raising money, want to grow or just plain want to be successful:
 
1.       Gaining customers (or if no proof of concept then a list of qualified customers)

2.       Showing they know how to grow their business

3.       Demonstrating profitability and ROI

These points may sound easy to achieve and you may be saying to yourself, ho hum, I don’t need to read further.
 
Point number 3 – Demonstrating profitability and ROI. A lot of startups get lost here.  They don’t realize that you have to invest/spend money in order to make money – Lie #4 – I have to show a profit before I can market.  Investors (and actually the company owners should feel this way too) are looking to see if you’re profitable or when you are predicting profitability (break even and beyond).  And tossing some money out willy-nilly at marketing efforts will never bring ROI into your company…you have to be strategic in how you market.

Here’s some definitions and formulas for calculating ROI and profitability:
http://www.dbmarketing.com/articles/Art129.htm


Sandra Holtzman teaches CEO 035: Licensing.

She is the author of Lies Startups Tell Themselves to Avoid Marketing.

Are you a successful business?

Three of the most important things startups need to focus on / demonstrate if they are raising money, want to grow or just plain want to be successful:

1. Gaining customers (or if no proof of concept then a list of qualified customers)

2. Showing they know how to grow their business

3. Demonstrating profitability and ROI

These points may sound easy to achieve and you may be saying to yourself, ho hum, I don’t need to read further.

Point number 2 – showing you know how to grow your business is key to not only getting funding but to keeping your business healthy. This is something that many startups and small businesses don’t focus on. They say cash is king and “they” are right. Sometimes companies become very successful very quickly and can’t handle it. Prepared for growth. By managing your cash flow you can set goals to grow your business, manage cash on a monthly basis and get a clear picture of what’s going on in your business. Make sure you understand all the financing options available to you – traditional as well as alternative and invoice factoring.

Don’t put your entire business at risk because of something that’s easy to plan for and track.

Here’s some interesting related points:

http://www.alleywatch.com/2014/02/5-red-flags-of-startups/?utm_source=AlleyWatch+Daily+Pulse&utm_campaign=c1ae92d926-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_e01c347085-c1ae92d926-62886025


Sandra Holtzman teaches CEO 035: Licensing.

She is the author of Lies Startups Tell Themselves to Avoid Marketing.

Are you a successful business?

Three of the most important things startups need to focus on / demonstrate if they are raising money, want to grow or just plain want to be successful:

1.       Gaining customers (or if no proof of concept then a list of qualified customers)

2.       Showing they know how to grow their business

3.       Demonstrating profitability and ROI

These points may sound easy to achieve and you may be saying to yourself, ho hum, I don’t need to read further.

Point number 1 – gaining customers is something that many startups and small businesses don’t focus on. They fall into my Lie #1 – If I build it, they will come.  Investors (and actually the company owners should feel this way too) are looking to see where your market is – are you marketing?  And startups, even marketing startups, often get lost in this space.  Ask yourself:  Would I invest in a company that can’t show me their market?  The customers lined up to buy the product as soon as it’s available?  A list of beta-testers?  ANY INTEREST AT ALL?

More and more I’m seeing startups and small businesses flounder in this area.  Forget for the moment Michael Moore’s crossing the chasm…these businesses aren’t even getting the early adopters.  Take heed and show the market interest.

Here’s some interesting related points:

http://www.alleywatch.com/2014/02/5-red-flags-of-startups/?utm_source=AlleyWatch+Daily+Pulse&utm_campaign=c1ae92d926-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_e01c347085-c1ae92d926-62886025


Sandra Holtzman teaches CEO 035: Licensing.

She is the author of Lies Startups Tell Themselves to Avoid Marketing.

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