Monday, May 30, 2016

Rocket your Startup with Superior Business Documentation

Posted first here, then LinkedInGoogle+Twitteretc.
Preparing Business Documents
Courtesy of the State of Montana
Let's continue our Startup 2.0™ Steps to “Rocket your Ready-to-Launch Startup,” from the Preliminaries to Phase I, Step 1:  Analyze, Upgrade or Prepare your Business Documentation, in formats such as our Overview format, which references our Business Plan format:

 State a succinct Mission

  • Problem that needs solving
  • Solution – unique and powerful.
  • Purpose – providing a universal benefit

 Define your Market

  • Demographics – type, revenue, workers, expense percentage, stage, growth rate, where you can make a difference
  • Size – number or $$
  • Penetration – percentage or $$
  • Use library and paid Market Databases

 Show off your Management Team – what the Founders become:

  • Members – 3-5
  • Total experience – at least 125 years
  • The Best Fit for each Founder – not every Founder is a CEO
  • Deepen your Bench with Candidates for the Mgt Team:  Board of Directors; Board of Advisors; few meetings – call/email 1-4 hrs/mo; small equity = $30k-$60k+ in years 3-5; show off those resumes!

 Clearly outline the Money – your Financial projections:

  • Detailed, reasonable Expenses – indicates your business knowledge and includes capitalization
  • Realistic Income
  • Net Income
  • 1st 12 months
  • Next 4 quarters
  • Next 3 years – longer if needed for decent ROI
  • Reviewed by qualified Accounting Advisor (generally a CPA)
  • Be careful disseminating too much information so it doesn’t become an illegal “public offering” of an investment

 Establish written Agreements with:

  • Team Members – duties; compensation; exit contingencies; other negotiated
  • Early Investors – shows interest
  • Vendors – shows reality
  • Potential Customers – LOIs, MOUs or Purchase Orders

 Write robust Plans:

More to come on the Startup 2.0™ Steps

Feedback and suggestions are always appreciated here, by message or email.
Thank you very much, Kenton, USA 302KentonJ
LinkedIn • BRIEF • TEAM & Aggregate Resume • Startups 2.0™ Meetup (Denver, 4pm Mondays:  main, 1st; work session, 3rd)