The AVC Smart Startup
Guide was written for
entrepreneurs who need to create cashflow now with minimal up-front
investment.
From over two decades of
entrepreneurial experience, I have come to divide them into
two groups based on how they handle the start-up phase. The
first group weds itself to a particular product which requires a
certain sum of capital to launch. This group then takes the traditional
approach to start-ups by first writing a business plan and then looking
for investors to provide the funding. The problem with this approach is
that most start-ups are never able to raise the necessary capital and,
therefore, either die on the vine or finally morph into something else
more do-able after six months of a futile capital quest. The
second group consists of entrepreneurs who announce their intentions to
go after a given market opportunity and are, seemingly magically, in
business a month later with bona fide customers and sales revenues.
What is the difference
between these two types of entrepreneurs? What is the magic used
by the second group? These are the questions that inspired the research
which culminated in The AVC Smart Startup Guide.
The AVC Smart Startup
Guide introduces a systematic new way of thinking about start-ups
called the Smart Start-up Model TM. The Smart Start-up Model
applies the latest in business modeling research to help you create a
"transition phase strategy" whose objective is to quickly create
positive cashflow for you. Once you have cashflow life becomes much
simpler. Cashflow not only enables you to pay your bills but it places
your company into the "stream of opportunities" that established
businesses enjoy.
The Smart Start-up Model is derived from the strategies used by
America's most successful small private companies which launched
without outside capital.
The objective of this
manual is to help you to discover how to get into a cashflow positive
situation first. That pet project requiring investor capital
may, therefore, have to wait six months or even a year. First things,
first, as they say. Shoot for cashflow immediately. Do not make the
traditional mistake of wasting 6 to 12 months writing a business plan
and then shopping it around to investors. Very few companies succeed at
raising capital from outsiders.
Think of entrepreneurs as
being a bit like chefs. Some
chefs are very rigid in their style requiring that a specific list of
ingredients be made available to them before they can start cooking.
This is fine as long as you are not too hungry and can wait for the
required ingredients to arrive. However, if you are hungry now and lack
the cash to buy more groceries, you will need to be flexible and work
with what you have.
Other chefs, the more
entrepreneurial ones, will not wait for someone else to deliver a
bag of groceries to them, but will instead immediately begin to search
the pantry, refrigerator, and vegetable garden for what's available.
They then use the items at hand to create a feast.
This is what true
entrepreneurship is all about.
The AVC Smart Startup
Guide defines two basic start-up models: the rigid Sitting Duck
Model wherein nothing can happen until a specified sum of money is
raised, the flexible Smart Start-up Model, a transitional model, which
helps you to get started with whatever you have at hand.
In entrepreneurship it's
all about cashflow and paying your bills. It's not about wasting a half year or more
of your life shopping a business plan around to strangers as the bills
stack up at home and your spouse fumes. Take my word for
it, you may love a certain widget which you want to introduce to the
world, but you will love positive cashflow even more. If your widget
requires a lot of money to launch, focus on cashflow first and
launching the widget second.
How to
Think Like a Successful Entrepreneur
If you
are not ready for
the 200 page AVC Smart Startup Guide just yet, why not check your startup
strategy against
the strategies used by the founders of highly successful startups?
There are many common elements amongst these startups. The closer your
strategy follows theirs, the more likely you are to succeed.
Research conducted at a
number of top universities suggests that entrepreneurs can
dramatically boost their
chances for success by applying the right startup strategy and going
after the right opportunity.