The tremendous clutter of 21st Century communication creates unique challenges in being heard above the noise when attempting to gather market research data. This is especially true when attempting to gather data via telephone surveying and/or email surveying on a stand-alone basis. For traditional telephone surveying, advanced voicemail and caller ID technologies have significantly reduced the percentage of connected market survey calls.
In our experience of assisting with their business plans more than 1000 startups, small businesses, middle market and Fortune 500 companies, we have noted the following common business plan pitfalls:
Pitfall #9: Not Including Successful Companies in the Competitive Discussion.
Does anyone do "early-stage investing" anymore? When we present deals to "early-stage" investors, we find their criteria to be more in line with the milestones of more established companies, and it sometimes seems like early stage is a non-entity.
I was encouraged by the news of Battelle Ventures and Allied Minds Inc., posted in The Deal here. The author mentions how both firms operate under unique structures which allow them to do true early stage investing in "pre-seed" technologies sourced straight out of research institutions and universities. Battelle only has one LP, the Battelle Memorial Institute, while Allied Minds raises money from shareholders in exchange for future equity with no specified time horizon. Perhaps these "special" circumstances allow them to take on more "risky" investments without having to answer to large numbers of LP's.
It makes me wonder if the traditional VC model actually works. What if traditional VC's could take the handcuffs off and get dirty with raw technologies and mad-scientists out of some futuristic research lab? What sort of companies would we start to see hit the marketplace and how frequent? What about timing issues and market relevancy?
"The greater the level of involvement and business expertise focused on early stage innovation, the more and higher quality of innovation we will see coming out in the marketplace" - Lesa Mitchell- VP for advancing innovation, Kauffman Foundation.
In 1995, Paul Graham co-developed the web-based application, Viaweb, which was subsequently acquired by Yahoo in 1998. Later, in 2002, he conceived a spam filter that inspired most current filters. Paul is currently a partner at Y Combinator, a venture firm that specializes in funding early stage startups.
In a recent article that Graham wrote entitled "The Hardest Lessons for Startups to Learn," Graham offers many insights and lessons that virtually all entrepreneurs can use.
Over the past several weeks and months, we've put together some entertaining "Just For Fun" articles related to business planning, marketing, and general business topics.
Here are links to those articles -- Enjoy!
The best entrepreneurs and executives at fast-growing companies have the ability to move efficiently and profitably from ideation to execution, and then from execution back to ideation and then back to re-focused execution. And they do so regarding all aspects of their businesses -- marketing and sales, operations and finance.
Most entrepreneurs and managers of companies seeking outside capital vastly underestimate how long it will take them to successfully complete a financing. Here's the reality check: in our experience, we've seen that, on average, a company and a management team seeking financing should budget between 500 and 1000 work-hours to the capital-raising process, spread out over a 6 month time period.
Read the full article here.
Can be read here at - http://blog.guykawasaki.com/2007/10/ten-questions-1.html - all aspiring entrepreneurs should take in this advice - in general Guy's blog is one of the best (if not the best) out there re venture capital, entrepreneurship, and technology.