Follow Along

  • 43

    Are your strong revenue projections supported by your strong connections?

    by on November 5, 2009

    So, up and to the right?  Your revenue forecast looks like the classic hockey stick projection.  But really, can you deliver?  We all know that those with the cash and you personally want a quick return, but the catch is in whether the results can be delivered.

    Perhaps you believe these forecasts; that your business plan is indeed going to achieve greatness quickly.  Your idea is so great that it could only achieve greatness.  If this is the case, stop for a moment and look inward.

    The question regarding the attainability of your revenue goals are as much financial as they have to do with your team.  So, before you go out soliciting funds, make sure you have the right team in place.  Sure your team may be your buddies – personal or professional – but are they the right team, are you motivating them properly and are they properly incentivized?

    It’s no secret, most start-ups live and die on the founding team’s connections.  Ask yourself, ‘Do I really have deep and strong enough connections to make this thing happen?’  Don’t kid yourself here.  You’re betting your money, your name and best of all (hopefully) someone else’s money on your connections.

    In the end, your team – you’re A-team is what will define your business.  Nothing more, nothing less.  All the financial forecasts, road shows and spin won’t change that fact.  Make sure the forecasts you assembly are attainable, consistent with your team and of course, go up and to the right.

  • 47

    Does Your Business Plan Go Up and to the Right?

    by on October 28, 2009

    Hopefully, but how quickly up? IPO Dashboards put together a visualization of their top 100 public software companies and what kind of a success they were. Were they a “Rocket Ship,” “Hot Company,” or “Slow Burner?” How long does it take to build a technology empire?

    Some of the conclusions are interesting.  For example, 50% of the companies analyzed took over 9 years to reach $50m in revenue, far from the hockey stick so many like to pitch.  Only 28% did it in less than 6 years.  So, if you’re building the next Adobe, Microsoft, Oracle or Salesforce, do you have the right time frame in mind?

    Who knew Novell was such the hit?  $50m in 3 years.  Yow.

 
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