Are you a candidate for an accelerator? You’ll give up some small amount of equity to the accelerator, receive some amount of cash in return during the program, and learn more in a short time than you’d expect from more formal education programs.
We’ve spoken of financing a young company through friends and family, known as “inside angels.” There are three classes of equity investors for early stage businesses that we have not yet considered. Often grouped into formal organizations, these investors are sophisticated, helpful, and connected.
If you are a screenplay writer, you are familiar with the dogma of the inciting incident. In a movie, the inciting incident is the event at the beginning of the story which causes the hero’s life to be completely transformed and irrevocably changed, and which makes the whole story unfold.
Most innovations come from responding to a customer’s needs, or finding a niche where products need improvement or extension. It is rare to innovate using a blank sheet of paper in a room with bare walls and no other contributors.
“Everybody’s got a plan—until they are punched in the face,” stated boxer Mike Tyson. My experience personally reviewing over three hundred executive summaries each year, all sent to me unsolicited, seems to bear out the truth in Tyson’s statement.
Creating a great company in a relative vacuum is an exercise in complete trust that the entrepreneur knows what’s best for the customer. I’ve developed the three step dance in order to help form a repeatable method of how to create a great company from an early idea.
Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.