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Startup Validation: Difference between revisions
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* Are there core beliefs or principles that shape your work? | * Are there core beliefs or principles that shape your work? | ||
* Do you have one official managing director/ceo? | * Do you have one official managing director/ceo? | ||
* Which tools does the team use for planning, coordination, communication etc? | * Which tools does the team use for planning, coordination, communication, documentation etc? | ||
* How is your workflow during a typical week? | * How is your workflow during a typical week? | ||
* What is the work-life balance of team members? | * What is the work-life balance of team members? | ||
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* Do you have a built out roadmap? How did you construct that roadmap? How do you decide what to focus on? Are you willing to share that roadmap? | * Do you have a built out roadmap? How did you construct that roadmap? How do you decide what to focus on? Are you willing to share that roadmap? | ||
* Do you have concrete plans to pivot if plan A is failing? | * Do you have concrete plans to pivot if plan A is failing? | ||
* How far did you plan ahead? | * How far into the future did you plan ahead? | ||
* How do you prioritize work? How do you measure progress | * How do you prioritize work? How do you measure progress? | ||
==== Recruiting ==== | ==== Recruiting ==== | ||
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* How do you plan to build your recruiting funnel? | * How do you plan to build your recruiting funnel? | ||
* How are you planning to retain important employees? | * How are you planning to retain important employees? | ||
* Do you have any prior experience with recruiting? Do you already have employees? | |||
* Do you have any prior experience with recruiting? | |||
==== Service providers ==== | ==== Service providers ==== | ||
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==== Budgeting ==== | ==== Budgeting ==== | ||
* What costs did you have over the last years/months (since inception)? | * What costs did you have over the last years/months (since inception)? | ||
* | * Do you have a detailed budgeting plan? Are you willing to share it? | ||
* How much money are you planning to raise in your next round? How are you planing to spend that cash? | * If you are not cash flow positive do you know how long your cash will last before you need to cancel the project? e.g. 9m month run away cash. | ||
* How much money are you planning to raise in your next round? How are you planing to spend that cash? How much runway will you have after closing your funding round? Are you planning (costly) investments in the near future? | |||
* Do you see a way to grow faster (or more sustainably) by making certain investments (hiring developers, hirings sales reps, advertising)? | * Do you see a way to grow faster (or more sustainably) by making certain investments (hiring developers, hirings sales reps, advertising)? | ||
* Do you currently receive a salary? What will your salary be after a successful funding round? | |||
* Are you well prepared on the tax front (monthly payment of payroll tax, VAT) to avoid unexpected tax payments? What processes do you have in place for accounting/ tax and how automated are these? (Checklist here (starting with "1. How to start Finance?"): https://www.florianhuber.de/blog/know-your-numbers-finance-and-controlling-in-early-stage-startups/) | * Are you well prepared on the tax front (monthly payment of payroll tax, VAT) to avoid unexpected tax payments? What processes do you have in place for accounting/ tax and how automated are these? (Checklist here (starting with "1. How to start Finance?"): https://www.florianhuber.de/blog/know-your-numbers-finance-and-controlling-in-early-stage-startups/) | ||
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* How do you see your further growth journey? (e.g. further VC-Rounds, Exit) | * How do you see your further growth journey? (e.g. further VC-Rounds, Exit) | ||
* How fast do you need to grow in order to succeed? | * How fast do you need to grow in order to succeed? | ||
* How soon do | * How soon can you achieve profitability? How much do you want to optimize for profitability? | ||
* Which kind of longterm margin do you think is realistic? Why? | * Which kind of longterm margin do you think is realistic? Why? | ||
==== | ==== Market ==== | ||
* How would you describe your business model? | |||
* How would you describe your business model? | |||
* Why does the market opportunity exists? Why did no one else capture that market yet? | * Why does the market opportunity exists? Why did no one else capture that market yet? | ||
* | * Can you quantify the current & future demand for your product? (Revenue) | ||
* Which | |||
* How big is the total addressable market? How large is the serviceable available market? Which assumptions did you make in your calculations? | |||
* Which % marketshare do you think you can obtain and hold longterm. Why? | |||
* How much revenue did you generate so far? | |||
* How much realistic revenue can you generate within your current step 1 niche/vertical/strategy? | |||
* What are you expansion plans beyond that? Which verticals are you going to tackle next? When will you tackle those verticals? | |||
* What are you revenue growth projections? What kind of assumptions, targets, kpis did you set yourself? What is currently the limiting factor for growth? | |||
* How do you market your product? How high are your Costumer acquisition costs and costumer lifetime value? | |||
==== Product ==== | ==== Product ==== | ||
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* Which part of your product are you most proud of? In which area do you need to get better? | * Which part of your product are you most proud of? In which area do you need to get better? | ||
* Are there any (technical) explanations/demonstrations of your product available so we could get a better understanding of it? | * Are there any (technical) explanations/demonstrations of your product available so we could get a better understanding of it? | ||
* How could we independently validate the quality of your product? | * How could we independently validate the quality of your product? | ||
* Has the product gone through iterations? For how long is the product already in its current iteration? | * Has the product gone through iterations? For how long is the product already in its current iteration? | ||
* Can you sketch the growth curve during the different product interaction stages? | * Can you sketch the growth curve during the different product interaction stages? | ||
* Are there similar products on the market? | * Are there similar products on the market? | ||
==== | ==== Moats & Competition ==== | ||
* | * What is the endgame in your market? How strong are network effects? How much consolidation are you expecting to see? | ||
* What is the most valuable resource in your business? What will be the deciding factor which businesses are going to be successful or not? | |||
* How will one business be able to take market share from the other? (Better product, pricing etc.) | |||
* Which types of moats are you hoping to build for your business? | |||
* Are there any moats that competitors have which are not obtainable for you? | |||
* What are power dynamics between different players in your market? (e.g. between your and your vendors/partners and costumers) | |||
* How are contracts structured generally speaking? | |||
* | * What are your two biggest direct competitors and who are your two biggest indirect competitors? | ||
* Which type of players are you seeing as your most serious challengers in the next years? | |||
* | |||
==== Clients & Partners ==== | ==== Clients & Partners ==== | ||
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* Do you currently have investors? If yes who are they? | * Do you currently have investors? If yes who are they? | ||
* Which conditions did you have in your last funding round? (size, structure) | * Which conditions did you have in your last funding round? (size, structure) | ||
* How is your cap table structured? | * How is your cap table structured? Is there going to be an employee stock option plan? | ||
* Do you vest your own shares? If yes over which period? | * Do you vest your own shares? If yes over which period? | ||