We’re moving back to raising capital this week and dealing with getting the dreaded “No” from investors. Anyone who’s raised money has heard this many times. This week we’ll discuss what it means and how to deal with it. When the Investor Says No Hearing a no from an investor can be very difficult. Typically as a founder, you’ve sunk your heart, soul, and sometimes a significant amount of your bank account into your start-up. After months of work on your business plan, financ

This week, we’re going to cover a fatal mistake that regularly catches founders and CEOs by surprise and takes ongoing commitment to keep it in check. What We Learn Growing Up When we’re young, the majority of our accomplishments and accolades come from what we do, such as hitting a home run in little league or getting an A+ in AP calculus—i.e. “Good hit, Annie!” and “Great work, Lila!” Doing things helps us feel good. When we accomplish something tangible, we usually give ou

Last week, we covered potential fatal errors related to funding and valuation. This week, we’ll continue our discussion and address the fatal error of not raising enough capital. Though there are usually underlying issues, running out of cash is the number one reason that start-ups fail. So, why don’t founders raise more money at each round? The answer is usually based on fear or ignorance, and sometimes both. Key point. For your start-up, ensure that you raise sufficient mon

Founders and CEOs who haven’t participated directly in multiple start-ups—most readers of this article—frequently make errors early in the process. Over the last few weeks at Broadscope, we’ve been in conversations with a few new CEOs who have made or are making what may be fatal errors. This week and next, we’re going to deviate from our path through the outline business plan and address some potentially fatal mistakes that you want to avoid. Fatal Errors We define fatal err

If you haven’t already, please read our article from last week about Revealed Preferences (RPs) and how they can affect your sales forecast and overall decision making. We’ll dig more into RPs this week to help you avoid the traps they present. An Overview of Revealed Preferences Sophisticated investors may not know the term revealed preferences, but most are familiar with the effects. RPs often catch many companies by surprise, forcing them to shut down when actual product d