Endless Growth
The entrepreneurs seeking funding often forecast excessive growth. They project $XXXM in revenue in the next three or five years, growing from YY to YYYY users in year NNNN.
Most revenue projections, notably five-year predictions, are a wild guess. All growth forecasts are wrong (including mine).
Investors are interested in how the start-up would acquire initial customers. How will the team get that massive customer base in the first few months or quarters? How will the enterprise keep the customers pleased?
Explain how the team will bootstrap in the start-up mode. Focus on burn and milestones. Precision is less important. Details matter more than gross, unsupported assumptions.
Saying, “as many as possible,” implies a series of trade-offs, some may not be good ones.
Think, “How big?” It is a question that always gets in the way of, “How good?
Satish Mehta
Author, Speaker, Coach
Blog
Knowledge Letter Sign Up
