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Place your bets now?

6th October 2017

It terms of pains and gains, when it comes to your business modeling it should be all about the gains. If you are lazy and think you can bypass the research part at the beginning, it will definitely come back and bite you at some point (probably at the point you run out of money) a scenario that no startup wants to face.   If you take the time to model your business idea correctly you stand a much better chance of survival in the long term, after all one could argue that you are gambling with your own money, so you might as well go and put it on the best looking horse running in the 3.30 at Haydock! Probably not the best advice.

So, your business modeling process is complete but how do you know when you are ready to launch your new venture? Easy, when the funder comes up with the cash. They aren’t going to let you go out into the market until they are pretty sure they aren’t gambling wildly on their own investment. When you are sure you have a good set of assumptions that are as stable as they can be, are easy to justify, you have sensible break-even targets and the end result is not stressing your cashflow and funding covenants, you’re a safer bet and good to go.

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