Every start-up by definition is a small company and they all have the same problem: They don’t have enough revenue to pay for ongoing operations. However there are different ways to solve this problem and choosing the right one depends on knowing which kind of company the start-up is likely to become when it grows up. Choosing the wrong one can be fatal.
There are 4 kinds of small companies. What makes them different is the potential scope of the business and this is defined by business model and the owner’s goals.
- Lifestyle & Legacy Business. These are the companies that 50% of Americans work for. They usually have fewer than 100 employees (most have way fewer). They range from a Mom & Pop storefront or janitorial company started to put food on the table to construction companies or manufacturing plants that become a legacy of wealth for future generations.
- Scalable Startup. These are the companies that founders hope will become the next Google, WalMart, or Ford.
- Large Company Entrepreneur. These are skunk works or other protected enclaves in a large company carved out to protect them from the bureaucracy of the large firm so they can start something fresh.
- Social Entrepreneur. These companies are in it to make money, but are started with a vision to improve the world. They often focus on ecology, social justice, or empowering the poor.
To get over the hump of being a start-up it’s critical to know which kind of company yours is. Then develop a plan to raise money and scale in the most appropriate way.
Programs for Start-ups
- Finding your Business Model Using Customer Development / Hypothesis
- How to Pitch to Investors
- Devil’s Advocate. If this is your first time or you’re starting with only an idea and some passion, this two hour session will tell you what you’re in for. It may keep you from losing your shirt.
Would you like to Learn More?
Call me. 203-775-6676. I’m on eastern time. Or shoot me an email: john@betterceo.com.
Let me know what questions you have and we’ll see if it makes sense for us to work together.
