Over the last six months, I have shared many lessons with you on how best to build your startup. Below is a checklist of the most important "must-haves" for any successful startup:
___ A well-thought out business plan and recurring revenue model (Lesson #7, Lesson #78, Lesson #108 and Lesson #132)
___ A large and growing industry, where a big business can be built (Lesson #118)
___ A firm handle on current and future competition (Lesson #19)
___ Defensible barriers to market entry (Lesson #43)
___ An experienced board of directors or advisors (Lesson #12 and Lesson #45)
___ A deep network of colleagues in your startup ecosystem (Lesson #47 and Lesson #85)
___ A motivating and credible CEO (Lesson #14)
___ An experienced and backable start-up team (Lesson #2, Lesson #27 and Lesson #83)
___ Appropriately compensated employees (Lesson #58 and Lesson #59)
___ Equity in hands of key managers (Lesson #9)
___ An entrepreneurial office culture (Lesson #13)
___ A healthy office environment with work-life balance (Lesson #18 and Lesson #55)
___ A religious focus on putting your customer first (Lesson #33)
___ The right product and pricing strategy (Lesson #20)
___ A profitable and tested "go to market" sales and marketing plan (Lesson #21)
___ Infectious enthusiasm and passion for business (Lesson #50)
___ A clear management focus on what you are building (Lesson #40)
___ Speed to market and knowing when to cut losses (Lesson #71)
___ Disciplined decision making skills (Lesson #87)
___ Flexibility to fine-tune model and navigate challenges (Lesson #8 and Lesson #31)
___ Persistence in goods times and bad (Lesson #29)
___ The right mix of intangibles that investors are looking for (Lesson #86)
___ Market timing and luck (Lesson #3)
And, more specifically, do not approach professional venture investors until you have acheived:
___ A good mix of the "must-haves" above
___ A sufficient proof of concept based on key milestones (e.g., revenues or visitor traction) (Lesson #122, Lesson #128)
___ Your planned go-to-market strategy tested and profitable (Lesson #120)
___ Meaningful customers under contract who would be solid references
___ A sizable pipeline of customers in the works
___ Key industry partnerships with brand-name marketing partners
___ Clarity you fit the types of investments your target investor makes
___ A fine-tuned elevator pitch, to get their attention
___ A credible "road map" for investor to realize 10x returns within 5 years (Lesson #140)
___ Realistic thoughts on potential exit options and buyers
___ A realistic expectation on valuation to attract capital (Lesson #32)
___ Clear handle on how much money you need, including cushion to last 18 months
___ Logical use of proceeds invested in future growth (not past debts)
___ A debt/equity investment structure that works for the investor (Lesson #109 and Lesson #116)
For this second list, please re-read Lesson #4--How to Raise Capital for Your Startup and Lesson #10--How Best to Approach VC's or Angel Investors. And, be sure to watch this video presentation I made on How to Pitch Venture Investors.
So, keep this startup checklist handy. If you check-off most of the items on the above list, you should be "off to the races" in building a winning business that should attract smart venture investors for your business. Wishing you the world of success (and luck) in your entrepreneurial adventure.
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