Do what you must to improve cash flow and insure survival. Once that’s done, figure out a way to capitalize. No one should put their business on hold for a year.
The only way to truly prove that a business idea is good is to launch it and make it successful. What is much, much easier is proving that a business idea is a bad one.
This week I’m handing off the blog to a good friend and client of mine, Pascal Wagner, to provide a case study for one of my coaching aphorisms, The 1-10-100 Process. Pascal’s experience provides additional insight into what happens when my clients put my advice to work.
Investors are looking for a solid framework of how your company will grow and succeed, and they want to understand all of the assumptions underpinning that framework. It’s called The 1-10-100 Process, and it meets all the same criteria as a five-year projection, without the arbitrary time variable.
All startups are based on assumptions, and most have devastating assumptions that make the product or service impossible to square. If you have a good startup, it doesn’t mean all your assumptions are right. It means that you’ve done everything you can to find out which of your assumptions are wrong as soon as possible. And once you’ve done that, you don’t just quit and do something else.
If you have a problem, do you honestly care HOW it gets done, as long as it works? Spoiler alert: the correct answer is no. Sure, you probably have conditions of satisfaction — the solution can’t cost more than X dollars, or require new software systems, or disrupt your supply chain. This is all a part of what success looks like. Once that’s defined, if your team can get the job done with helper monkeys in cute little vests, more power to them.