Concentrate on startup business focus while progressing through the corporate formation of a startup. And again during all planning processes. Your Angel and VC investors will especially appreciate your attention to these points:
- Investors and all other stakeholders want a startup to have a strong startup business focus. It is good to have multiple future revenue stream possibilities. But stay focused on the one with the low hanging fruit at the beginning.
- Your thinking should converge on strong business focus during planning processes. Thus your focus will emerge clearly in your core planning documents and presentations
- Avoid activities that detract from or confuse your strong business focus
- Your marketing messages should include a clear articulation of your business focus
- Many angel and venture capital investors will not invest in a startup that they consider to be a “Design House” that wishes to spin off multiple startups. On the contrary, they wish to invest in a startup that focuses on one specific business.
- If a potential investor learns that a startup company is a spin-off from a Design House, the investor will want to understand the autonomy of the startup and the level of commitment of its employees. In general, investors have a strong preference for full-time employees
- The type and amount of focus in any startup is important to potential investors, customers, employees, other stakeholders and founders.
- If you are going to operate a startup without external investment, business focus must be very important to you. You can diversify after you achieve a good level of success.
Conclusion – Strong Business Focus
Clear communication of Startup Business Focus is required when interacting with co-founders and any other stakeholders. Therefor control of Startup Business Focus is vital during the many planning processes.
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- Business Plan
- Plans and Reports For New Ventures
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