Investor Pitch Deck Guide

The Most Comprehensive Investor Pitch Deck Guide

Gone are the days when startups would photocopy their business plans to create a handout for potential investors. Nowadays, it’s all about having an impressive and attractive pitch deck to wow them. An excellent investor pitch deck is essential when presenting your business to stakeholders. So let’s dive into pitch decks, the do’s and don’ts, and the best tips in this comprehensive investor pitch deck guide. 

What Is a Pitch Deck?

In business, a pitch deck is a presentation that entrepreneurs put together to explain to investors about a business concept, product or service, fundraising needs, and critical metrics like valuation, target market, and financial goals. Pitch decks, also known as startup pitch decks or slide decks, are best when brief but informative accompanied by visually appealing slides that further convey the message.

What Is the Point of a Pitch Deck?

You may assume the only purpose of a pitch deck is raising funds. It is not entirely true, though. Sure, money is the ultimate goal. But you have to get there, one step at a time. Through a pitch deck, you get to:

  • Spark interest in your business
  • Get a second meeting
  • Raise funds

If the investors are interested after hearing your pitch, they want to know more about your business. That earns you a second meeting. Why does a second meeting become important?

You know that pitch decks are brief. Sure, they are Informative but brief. It is a way for investors to gain the first insight into your company or business idea. What they learn in this first meeting is limited. They would need to know more before deciding to make investments. You want to leave investors interested to know more after they hear your pitch. That will earn you a second meeting. 

Investor Pitch Deck Guide - Raising Funds and Securing Investments
A Killer Investor Pitch Deck Helps You Raise Funds  

Investor Pitch Deck Guide: How to Create a Killer Pitch Deck

Now that you know the purpose of a pitch deck, it is time to create yours. Before you start working on it, you have to know what format works best to attract potential investors. Through our investor pitch deck guide, you will get to know what to include in your presentation through slides (can include up to 10-11 slides). Take a look:

1. Vision and value proposition

You can include your company’s value proposition on the first slide. Present an overview of your business and the value you offer to your customers. What you plan to say should be clear, short, and simple. 

For example, you could make your company’s value proposition compared to another well-known company. You could say something like; “We’re the Netflix for Video Games”

The phrase is clear, short, and simple. Plus, this approach is a clever way to introduce your concept. However, remember that you cannot use a random high-profile company name here. Make sure the comparison makes sense. Your business model has to be similar to the company you are referencing. Otherwise, you are just name-dropping for no reason.

2. The problem

What problem are you planning to solve through your service? The second slide is about that. 

Discuss in detail the specific problem you are solving. It would be best to use real-life stories of people facing the issue to explain it. It is the most effective approach to present the problem. Try to make the problem evident and well-described to the fullest extent. That way, your investors will find your business and your goals promising. 

You can briefly mention other solutions available in the market as well. It is also better to mention the limitations of those solutions if those solutions are presented. However, do not go into detail yet. It is for another slide.

3. Target market and opportunity

This slide is to discuss your ideal customer. Explain who your customer is and the population. The investors would want to know the total market size and how you position your company in the market? We recommend collecting data on how much people or businesses currently spend on the competitors’ solutions in the market. Such details will help investors to recognize the market size. Take this opportunity to explain the scope and scale of the problem you plan on tackling. 

A classic mistake is trying to give the impression that your market is as large as possible. However, that is not what the investors would want to hear. A more reachable and specific market is more appealing to them. If you are vague and unrealistic about your market, it may give off the impression that you are not aware enough of it. If you are more realistic and specific, the more likely investors will be on your side. 

4. The solution

Here we are at the most exciting section of the story; the solution. In this part of the presentation, you can describe your product or service in-depth. Include how customers find the service helpful in tackling the problems you mentioned earlier.

If you are a good storyteller, you would know how to present this section to your audience. So far, you have built up the problem, highlighting the negative impacts it creates. Now, introduce your product, highlighting how it will save the day.

Even at this point, give more focus to your customers and the problems those customers face. That seems more convincing and genuine than a whole rant focusing only on the product.

Investor Pitch Deck Guide - Your Product or Solution
Your Product or Service Should be the Ultimate Solution to Targeted Customers’ Problem 

5. Revenue model or business model

By this point, investors got to know about your product in detail. Now it is time to explain how it makes money. Explain how much you plan on charging and who pays the bills. 

You can also highlight how your price fits into the larger market by referencing the competition environment. Are you a premium, high-priced product or a low-cost offering that undercuts existing market solutions?

6. Traction and market validation/Timeline of your achievements

Discuss any sales or early adopters you have with your product in this section. Investors want to know if you have proven some aspect of your business model. Why? Well, because they do not want to take unnecessary risks. If you have succeeded, it is a clear sign for them that your product can solve the problem you have identified. Use key performance indicators like monthly active users, ARPU (average revenue per user), and profit margins. These KPIs will show that your approach is promising.

What if you do not have a minimum viable product yet? Then, substitute this slide with a timeline slide to mention your achievements and milestones you have reached. Also, include your future goals and milestones you plan on achieving. 

7. Marketing and sales strategy

This slide should highlight your marketing and sales plan. You have to explain what your sales process looks like and how you plan to attract customers? Make sure to show that you know what you are doing. Let the investors know that you have a clear understanding of how to win customers. 

Explain the tactics you plan to use to reach your target market and what sales channels you plan to use. Suppose your marketing and sales process is a little off-beat, different in comparison to others. In that case, take some time to explain that too.

Sales and Marketing Strategy
The Marketing and Sales Strategy Is One of the Most Important Slides in the Pitch Deck 

8. Introduce your Team

Investors expect to know why are you and your team the right people to build and grow this company? What experience do you have? What sets you and your team apart from others? Convince them by highlighting the best talent of your team, pointing out their expertise. The expertise must be explained to the investors in a manner that they can comprehend. Sometimes these investors can be from a non-technical background, so they might need a high-level overview of the expertise. Also, give examples of their best work (for example; mention the awards they have won and recognition they received in the field) 

What if you do not have a fully fleshed-out team yet? In that case, mention the key positions you still need to fill. Do not forget to explain why those specific positions are critical to company growth.

9. Financials

This slide allows investors to see your financials. It should include sales forecast, your income statement, and cash flow forecast for at least three years. Make sure to present these details in a presentation-friendly format. They would not want in-depth spreadsheets that would be difficult to read and would not work for presentations. Instead, take advantage of visual effects. Use charts that show sales, total customers, total expenses, and profits.

You would have to explain how you reached the conclusions regarding your sales goals. Also, make sure to let them know about your vital expense drivers.

Remember to try and be realistic. If you can explain your growth based on traction, you already have or compared to a similar company in a related industry, that is extremely useful.

10. Your competitors

Your potential customers are using alternative solutions to solve the problem of interest.

Use this slide to explain how you fit into the competitive landscape. Highlight how you’re different from the competitors, including how your solutions are superior to theirs. You can explain how you are different from them. Emphasize that X factor that you have that your competitors don’t. Give solid points with examples and explain why customers will choose you over your competitors.

11. Investment and use of funds

We are finally on the topic of money. The last slide is all about the ultimate goal of your pitch deck-raising funds. Your potential investors would want to know how much money you expect.

You also need to explain why that specific amount. Also, investors will want to know how you will use their money. Explain how you plan to spend the money to achieve specific goals you are setting out for your startup.

You can also bring up investors you have invested in you. (if you have any) Explain why they thought it was a good idea to invest in your business.

Investor Pitch Deck Guide – Do’s and Don’ts 

The investor pitch deck guide is not complete without letting you know the do’s and don’ts when pitching decks. The following investor pitch guidelines will tell you what to do and what not to do. Do you want to know how to get investors on your side? Also, how to avoid the classic mistakes that could cause investors to reject you? If you want to know, keep reading.

Investor pitch deck do’s 

1. Master Storytelling

The best pitch deck must be simple, easy to understand, compelling, and attention-grabbing. And the best way to achieve that is through storytelling. No one can resist a good storytime, not even investors. A relatable story will get their attention than a long, boring self-introduction. Skip introductions and start your presentation with a relatable story that defines your concept and conveys your message. 

2. Use numbers, not words

Numbers tell a lot about the company’s financial health and future prospects. It’s said that traction speaks more than words do. Having traction is proof that the company has done well and can grow even more in the future. It also demonstrates how precise you are when it comes to implementing your plan. It is a good indication of whether the firm is really aiming for the stars or just leading the investors up a gum tree. 

3. A head-turning opening line

The first few seconds of your pitch deck can make a huge difference. It is the time when you have maximum attention from everyone. And remember that these investors get to hear a lot of pitch decks. Yours is just one of the hundreds. So you want to make your pitch deck stand out. Get them to find yours unique from the very first line. You do not have to waste the first few seconds with greetings and thank yous. Go for an exciting quote instead. Or you can start with a stat or a great review from one of your customers. Either way, it should have the power to get attention from your audience and keep them interested to know more.

4. One topic per slide

One topic per one slide is the way to be clear and precise. You do not want to stack all the information into a couple of slides and expect the investors to understand. That would make them feel like they are back in a college lecture again, which is not what you want.

Also, it makes things easier for you, the presenter. For example, suppose you explain different issues the store owners face and their customers in your pitch deck. The ideal way to present this information is by having the problems split into two slides. Give one for the customer and one for the store owner.

5. Slide design consistency

Consistency throughout your presentation is essential for a few reasons you cannot undermine, including:

  • It gives a professional look to the presentation. 
  • Your audience can focus on what you have to say.
  • It gives the impression that you are detail-oriented.

Remember that even if you are doing the talking, your slides speak louder. If the designs you used on the slides are inconsistent and all over the place, it will not convey your message correctly. To avoid that, stick to a specific design and color theme throughout the presentation. Apply a consistent color scheme to all your slides. We recommend going with your brand colors. 

Pitch Deck Don’ts

1. Do not bore them with plain slides

You can do so much better than plain white slides and bullet points. You want to give the impression that you are innovative and up-to-date with new tools. And the basic-looking slides with bullet points lined up with no visual effects will not help you there. Use the visual medium to compliment and elevate your story. It should not bring you down. 

2. No TMI (Too much information)

We are sure that you are passionate about your business and love to go on and on about it. However, a pitch deck is not the time for that. You may not find it wrong, but it might sound like verbal diarrhea to impatient investors. 

They only want to hear about the most critical aspects of your business, so no TMI. Therefore, cut down anything that is not relevant to investors. 

Investor Pitch Guide - No TMI
Too Much Information Leads to Confusion

3. Not enough visuals

What if your slides have more text and little to no visuals? Trust us-that is not a good look. It can be boring and distracting for the investors to bear with it. And you will ultimately lose their attention. They might fall asleep halfway through it. That is why you need to add some animations or transition effects. 

You can use images and clips that convey your message. They can absorb information faster when you use visual mediums than text.

Investor pitch deck guide – Summary 

There you have it. Our investor pitch deck guide covered everything from explaining what a pitch deck is to everything you need to know to create your own. You now know that a pitch deck is a necessary tool to 1) get a second meeting and 2) raise funding from investors for your startup. Sure, there are no set rules to follow for creating pitch decks. However, there are a few ‘unwritten laws’ that you may have to follow. For example, you have to keep the basic investor pitch deck guidelines in mind: keep the pitch deck short, simple, and clear. Also, following the format we suggested works best to get investors on your side. 

Alternatively, you could consult an expert to help you out. Reach out to professional pitch deck consultants and explain your business idea. Then ask them to craft your story and create your deck for you. Suppose you are only unsure of the design aspect of it. In that case, you can either hire a pitch deck designer or use an intuitive pitch deck builder. That way, you know your pitch deck is flawless.

Blockchain Technology in Sri Lanka

How Sri Lanka Can Be Benefitted from Blockchain Technology

Blockchain! Not only in the tech world, everyone who has a little awareness about the new digital world might hear this word one or more times. Surely, the main reason is Bitcoin, a cryptocurrency, an exceptional application of Blockchain technology. I am not going to clarify what blockchain is, instead I would like to discuss what benefits we, Sri Lanka, especially the Government, can get via the Blockchain & distributed ledger technology. If you are new to blockchain, I would suggest reading some articles on blockchain technology including this: , before diving into this discussion. 

The main advantage of blockchain is its immutability of data written into the blocks with a distributed ledger, cryptography & consensus (mutual agreement on something) mechanisms. Unlike conventional software applications where a single server or few servers are owned by a single organization, blockchain imposes a Peer – Peer Network architecture, and everyone in the network must hold the same copy of the ledger. Therefore tampering or deleting data is almost technically impossible in a blockchain network and increases the trust among the participants.

Client Service vs. Peer-to-Peer Mode
Client Service vs. Peer-to-Peer Mode

In a database, four main operations are possible: Creating, Retrieving, Updating & Deleting (CRUD) the records but, in a blockchain ledger Updating and Deleting is eliminated purposely by imposing once you write something, it can never be edited or even deleted. Because of this, blockchain-based systems are more transparent, reliable & accurate when compared with non-blockchain systems.

Well, how will these advantages offer benefits for the products, companies, or Government institutions that are using blockchain technology? Predominantly trust or credibility is something well-worth in a software application, especially in a Government sector where in most cases it deals with people’s money. A country like Sri Lanka that needs monetary aid from the World Bank, IMF, etc. can obtain massive benefits if the crucial government-based systems have transparency and reliability. Blockchain-based systems will enhance the ‘Digitalization Process’ in massive steps and reduce the manual workload in Govt. organizations. Eliminating frauds that can be done with conventional software systems would lead to more transparency systems that carry off the trustworthiness of the general public and the international community. But, this needs a genuine intention from the political leaders!

Benefits of Automated Fraud Detection
Benefits of Automated Fraud Detection for Governments  


Let’s turn to the international, not too far, our neighbor India. India published “National Strategy on Blockchain” in December 2021. It consists of Scope, Roadmap, National Scenarios, Strategies & Targets for 5 years, National Blockchain Framework, etc. A clear & comprehensive document stated what they are going to do and how they are going to achieve that. Some developed applications and pilot projects have been mentioned there (section 5) related to governance, banking & finance, cybersecurity, etc. It seems that India’s Ministry of Electronics and Information Technology (MeitY) has a definite vision of implementing blockchain solutions to their most critical use cases relevant to the public sector and offering benefits to their people.


Well-known ‘Smart Dubai’ bundled with blockchain technology is another great example of blockchain use cases in governments. As mentioned in the ‘Dubai Blockchain Strategy’ they intend to be the “first blockchain-powered government” that saves 5.5 billion dirhams (nearly 1.5 billion USD) per annum in document processing, the value of one Burj Khalifa’s tower!!!

Other Governments

This article describes the Governments that are using or experimenting on CDBC (Central bank digital currencies):

Suitable for Sri Lanka? But a few questions arise here:

Are Blockchain-based systems suitable for Sri Lanka? Especially for the Government?

Will it be possible to implement blockchain systems in Government institutions?

The massive obstacle is the corruption-based system in Sri Lanka (most developing countries) that demotivate transparency and always tries to hide the information from the general public. The writer read an article published in an investigative newspaper that mentioned a major Government organization’s software application that is developed to allow adding new users by violating the ordering mechanism purposely! Altering & deleting data/records from the database level backs up this kind of malpractices and reduces the trust among the people about the existing systems in the Government institutions (same for the private sector as well). There are massive allegations to the Governments who have led Sri Lanka including the incumbent, for escalating frauds and misconduct to gain their own advantage.

Corruption Rank - Sri Lanka
The Fluctuation of Corruption Rank in Sri Lanka Over the Years

Well-known ‘Computer Jilmart’ (computer-based malpractice) raised by the opposition in 2010 in Sri Lanka is a distinctive example of the attitudes of the citizens in Sri Lanka towards the computer-based systems in Government organizations. Although any ‘Jilmarts’ hadn’t happened (the same group claimed 3 years later) people were believing that some frauds were done with the support of IT systems. Changing this frame of mind from Sri Lankan people is very difficult as long as using the conventional software systems in the Government institutes. On the other hand, introducing tamper-proof & immutable software systems are difficult as long as the fraudulent ruling system is being practiced. But the responsibility & the accountability is goes to the Digital Technology and Enterprise Development Ministry of Sri Lanka, at least get the support of the leadership and start to rearrange the policies and establish a ‘Blockchain Strategy for Sri Lanka’ to build more transparent & decentralized Government.

What should be done?

Before all, need a way to educate the people, especially the Government officers who have very low literacy in the latest ‘Digitalization and Decentralization’. Basic computer literacy or handling an ERP system isn’t enough to perform the duties in the modern world for any ‘non-IT’ officer but, the comprehension of modern digitalization is essential. While establishing a ‘National Blockchain Strategy’ there should be a way to enrich the knowledge of the responsible officers in the Government as they are the key to running the systems.

Educating the next generation is mandatory with the latest evolutions in computer science & IT like Blockchain, AI-Machine Learning, Big Data & Cyber Security. My opinion is the very primitive concepts of these technologies should be introduced to the G.C.E. (O/L) syllabus, better to introduce a non-compulsory subject ‘Modern Digitalization’, and wrapped these concepts with some practical examples. Changes must be made to the ICT subject in G.C.E. (A/L) by adding intermediate knowledge of the said technologies and practice labs.

Main applications should be developed or revamped with blockchain layers:

  • Land registration system (new/revamp)
  • Motor vehicle registration system (revamp)
  • National identity card system (revamp)
  • Passport issuance system (revamp)
  • Personal criminal records (if any, or developed a new one aligned with IRC records)
  • National procurement system (new)
  • Educational certificate system for G.C.E. (O/L) & (A/L) (new)
  • Public donation management system (new)

Private sector’s contribution:

There are thousands of software companies in Sri Lanka but, extremely limited of them are concentrating on blockchain-based solutions, products is a pathetic situation. This is even after 11 years of the first practical blockchain application (Bitcoin) and 6 years after the Turing-complete, a not-only-finance platform like Ethereum and Enterprise suited platform like Hyperledger. Our companies must more focus on these kinds of solutions and offer support for the Government sector to achieve the maximum out of blockchain technology! Support may not be the correct word, Influence is the best!!!

Final thoughts:

In summary, a bunch of profits can be gained with Blockchain technology as a country if we grab it accurately. It seems that people are only focusing on cryptocurrencies, wallets, tokenization, etc., and miss all the other great utilizations. The reason is most of them only know or learn about the crypto and related stuff but didn’t analyze what is beyond them in the Blockchain ecosystem. Learning & practicing in blockchain technology indeed need a sizable knowledge and skills in software product engineering & computer science (for the most part back-end technologies) may be the route cause for this.

It is unavoidable for the rulers and policymakers to take the necessary steps to make policies & strategies with the support of the appropriate intellectuals to develop a solid foundation for adopting Blockchain technology in Sri Lanka. This should be a quick process but, analyzing the long-term risks, personal data protection (public blockchains), aligning with the existing digitalization architecture, etc. should be done with due diligence. As software professionals, we are expecting a significant contribution from authorities and bureaucrats to implement more blockchain applications in the Sri Lankan Government sector and are willing to provide support as it is our ought and duty.

Pros and Cons of Bootstrapping a Startup

The Pros and Cons of Bootstrapping Startup

Are you thinking of bootstrapping your business? A bold choice, for sure. But is it the right call? Considering the pros and cons of bootstrapping a startup can give you the big picture. Choosing to fund yourself comes with a ton of benefits. But you cannot ignore the drawbacks that are also a part of the process.

Bootstrapping is appealing to many because you can develop the business the way you want without incurring much debt. It takes away the pressure from investors, which is a plus. But at the same time, it can also be a stressful venture to build an entire business from scratch with no outside funding. If you are still not sure which way to go, this post will be your guide to weigh the pros and cons of bootstrapping a startup.

Pros Of Bootstrapping Your Startup

You are the boss 

As a bootstrapper, you will retain 100% of your business ownership. As you have complete freedom of action, you get the final say in running the startup without pressure from investors. Also, you do not have to miss out on equity in your business. The benefit still applies even if you are a co-founder. How so? The reason is that your share of the equity will still be far more extensive than if you go through numerous fundraising rounds and keep diluting your ownership. 

Pros of Bootstrapping a Startup - 100% Ownership
Bootstrappers Get the Privilege of Having 100% of the Ownership of the Businesses

You get to be in control

You get better control over your business’s direction with you in charge. That means you get several benefits like:

  • You get to remain independent of venture capitalists or investors who will eventually end up wanting to call the shots
  • Avoid clashes with investors over differences in views and goals
  • Not have to get approval from investors to act on your decisions
  • Not have to meet their demands or expectations 
  • You get the creative freedom you want

Whether you want to create an alternate product design or even completely change your company’s heading, you can do that. It gives you the freedom to act upon your ideas, values, and views without the added pressure from investors behind your back.

Of course, even with raising capital, you may get super-voting rights that give you more control. However, if you value having control over artistic direction and decisions over anything else, bootstrapping your business is the right choice for you.


Less Stress with Limited debt

As a bootstrapper, you have the option to open a credit card to build business credit or make one-time purchases. Yet, your company does not have to depend on outside funding to proceed. You will be able to pay off any debt quickly. On the other hand, you will not have to worry about owing on a massive loan if things do not work out according to plan.

You get to keep your business

Was it always your dream to grow your startup as a lifetime business or even make it a multigenerational business? You can achieve this dream by bootstrapping your startup. It is, in fact, the best option you have if you want to continue and not have to give up in 10 years. You do not want to let investors set a time limit on your ability to make a significant profit. 

Sense of Accomplishment

It is certainly not the most obvious advantage. Still, you cannot undermine the sense of accomplishment this experience can give you as an entrepreneur. You will know what we are talking about when your startup grows and becomes profitable. Seeing the growth of your hard work will encourage you to work harder and achieve more. One day you could even sit by a fireplace and tell your grandkids how you built an entire business from scratch.

You have no other choice but to build a business model that works

You know that bootstrapping is a business from scratch, with no funds, no investors, no nothing. In this scenario, the owner has to somehow make the impossible happen. This challenging situation is an opportunity for a bootstrapper to build a business model that works well quickly. In such cases, you focus on a single profitable product or service while maintaining a strict budget and building customer loyalty. If you succeed, your startup will produce cash flow and profits in a short period of time. 

Business Model for Success
Effective Business Modela are Essential for Bootstrappers.

You get to focus entirely on the business

As an entrepreneur, your primary focus has to be on creating a product that customers want and like. However, how often can you focus on your goal when you are busy trying to impress investors and fighting for your creative freedom? With a bootstrap startup, you only have to focus on impressing your customers. You can focus on being successful in the direction you want to take. And all of these factors add up to the fact that if you can successfully bootstrap, you will have a great product and loyal customers.

Cons Of Bootstrapping Your Startup

Now, we have come to the second section of our “pros and cons of bootstrapping a startup” post. This section helps you really understand the cons of bootstrapping a startup in detail. Let’s review them now so that you can weigh the pros and cons and come to a decision. 

Slim chances of survival

Bootstrapping is not the easiest choice out there. You may feel like you are walking on thin ice, knowing how low your chances of survival are. You cannot afford to make many mistakes. The accuracy of your decisions essentially decides whether your business survives. You may have to make tough calls and change routes, especially when it comes to financial issues.

It is a well-known fact that most businesses collapse when they run out of cash. Why? Because you can create a terrific product or service that others will love, but it will not be sufficient to ensure survival. If you are in a tough spot for just a couple of months, your startup may never reach its full potential. At this stage, meticulous planning and budgeting are necessary to find a way to survive. Budgeting may reveal that you will need to obtain outside capital, and if this is the case, you may need to persuade investors as quickly as possible to make a decision. This means you may have to be ready to present your story to investors to get their support.

You are taking a personal & financial risk

The most obvious con with self-funding your business is that you risk losing all the money you put into the startup. Bootstrapping means your entire startup depends on you. If you succeed, you gain profit, and if you do not, you lose it all. Suppose your business takes a hit at some point. It could be due to a lack of sales or an unexpected expense- it will directly impact you. 

The situation can be even more challenging if you are not taking your salary as most entrepreneurs do during the first few months of the startup. In that case, if you fail, you will have to survive without an income. The financial risks to bootstrapping are huge, so you have to come up with a plan to move forward. 

Cons of Bootstrapping a Startup - Financial Risk
The Financial Risk Can be High for Bootstrappers 

Expect to see slow growth

Why do most entrepreneurs go out to fundraise lots of capital? Well, that is to scale big and fast. Without outside funds, you cannot do much to serve your customers. By bootstrapping your startup, you sign up to proceed with minimum resources. It can cause your growth to be slow. Of course, you only have to wait until money starts coming in.You can then begin to invest in resources. However, know that it will take time and until then, you will have to adjust your overall projections.

You may not have enough time

As we mentioned earlier, with bootstrapping, you get the chance to focus entirely on the business without having to stray from the end goal over clashes with investors. However, you may not have as much time as you think in reality, and therefore, time is a factor to consider when bootstrapping a business. It can be tricky if you are in a situation where you cannot afford to give up your day job. That means you only get a little spare time to work on the startup. You may not be able to devote yourself to your business as much as you want. Unfortunately, that leads to your startup taking a long time to execute. 

However, this does not have to be the case for you. You do not need to keep your full-time job until your startup is stable. You can still commit to working on your project. If you decide to do so, set some personal savings aside-not for the business- but for yourself. It could be your ticket if you ever need to back out.

Cons of Bootatrapping a Startup - Running Out of Time
Battling with Time Can be Challenging for Bootatrappers

Get ready to hustle harder

You can find a lot of successful bootstrap startup stories. None of which would have worked out without hard work. Bootstrap means you have to make the most out of pretty much nothing. So you will have to hustle harder, work extra hours, single-handedly tackle all issues and make the right calls as the owner. Since you do not have the budget for recruiting the best talent, you have to work with what you got. It would be best for the business if you could recruit people who are passionate about the vision and mission.

You have to stay organized

Being a bootstrapper means you have a lot on your plate. You are out there trying to make the best decisions, putting your thought, effort, and time into taking the business to the next level. With this workload, you may forget about teeny tiny but essential details. We are talking about taxes, systemizing processes, and bookkeeping. 

If your books are not clean, it will cause trouble when filing with the IRS, trying to scale, and if you end up wanting to raise funds. Regardless of how busy you are with the startup, do not neglect these small but essential details. They can make a significant impact on every step of the way.

Networking can be challenging

Being a bootstrapper, you do not have to deal with investors, which saves you a lot of trouble. However, you will miss out on the incredible opportunities they bring to the table. Investors and venture capitalists are well connected. They usually offer strategic connections to more investors and possible team members. Plus, they can connect you to larger organizations and provide partnership opportunities to open up new markets for your product. 

When you bootstrap your startup, you will miss valuable strategic networking connections. Besides, investors can provide advice, and their input could help your business thrive. As a bootstrapper, you do not have investors to back you up or help you with networking. So you have to make connections yourself. Great connections can be your best resources. So start networking to find yourself potential customers, mentors, and people who will help you spread the word about your startup.

Treinetic’s Final Thoughts on Pros and Cons of Bootatrapping a Startup

There you have it! This post helped you weigh out the pros and cons of bootstrapping a startup. So did you make up your mind yet? Bootstrap can bring many benefits and, unfortunately, some drawbacks as well. However, whichever path you choose- bootstrapping or investors- you will have to face both advantages and disadvantages. No approach is smoother than the other. 

Ultimately, it is up to you to decide which direction works best for you and your business. 

How to Scale Remote Team

Everything You Need to Know About How to Scale Remote Team

Understanding how to scale a remote team is essential if you’re thinking of setting up your own IT consulting firm. In recent years, the need for company executives to manage remote teams has grown tremendously due to the attractiveness of a remote workforce. The advantages of remote working are many. And they may be reaped by both the business and the remote team members. These benefits include increased employee satisfaction due to the flexibility of working places and a more extensive global reach for the organization.

Why choose remote teams?

When discussing how to scale a remote team, it is essential to consider why they have chosen to work remotely. Consider the following scenario: you want to launch a new IT firm in a few months. It’s been proven that companies can save a lot of money on employee costs with remote teams. And this is because they don’t need to have physical office space. This means that the business usually doesn’t have to spend a lot of money at the start.

In recent years, remote working has become more popular among IT professionals and small and startup organizations. And the global pandemic has significantly contributed to this increased popularity. The settings in which these organizations operate are constantly changing. Therefore, they see the obvious advantages of not making a significant investment in a physical work location.

Remote working has many advantages. But it also poses many obstacles to businesses and the people in charge of management inside the organization. Managing a remote workforce comes with several issues. These may include ensuring that employees are working as efficiently as possible, that they are present when they are needed, and that they are motivated.

The Advantages of Building Remote teams
The Advantages of Building Remote teams

What Exactly Does It Mean to Scale a Team?

Scaling a team is simply the process of increasing revenue while keeping team costs at a constant level. If your sales rise by 40%, but you have to add five additional workers to your team, you aren’t scaling it. If you can handle that 40 percent growth with your existing personnel, you have successfully scaled your company’s operations.

How to scale a remote team: step-by-step instructions

UC Berkeley and Stanford researchers found that 70% of the companies they studied sought to scale too early before other basics of their company were in place. They published their findings in the Startup Genome Report. A key conclusion of the analysis was that premature scaling was a contributing factor in 90 percent of failing startups. Therefore, as well as knowing how to scale remote teams, you must know the right time to go for it.

What is the source of this widespread issue? It all boils down to the reality that none of these choices are made in a vacuum. For some startups, the temptation to exploit hiring statistics as a façade of success while under pressure to enhance performance may be tremendous. A startup founder could be under a lot of pressure to show investors that things are going well for the next meeting. On the other hand, a mid-sized (proprietary) software company would have to respond to many requests for a new feature and make it happen before their competitors.

The time it takes to see a return on investment (ROI) varies by position (the position in the management hierarchy of the organization) and might be months long. Among the costs of recruiting are the time spent by existing workers teaching new employees and the cost of hiring itself. It costs the company a lot of money and time to get rid of people who aren’t healthy or who leave early. Don’t focus on a short-term victory to distract from long-term uncertainty. Invest time in defining how your organization’s mission, values, and culture will be implemented on a new team.

Below are the crucial elements of how to scale remote teams:

Continue to be adaptable (stay agile)

When referring to a group, the word “agile” describes their capacity to adapt. The self-organization of all team members is the first step in scaling your remote team. The completion of any product or project relies on various people, including developers, designers, QA officers, and so on. Teams that work in an agile manner are cross-functional and have a shared sense of responsibility for the outcome.

Agile Development for Remote Teams
Agile Encourages Stakeholder and Team Engagement

Scaling your business the old-fashioned way will result in organizational silos and sluggishness. On the other hand, firms that use an agile approach find it much simpler to adapt to scalability problems. When business experts first used agile methods, they thought they could only be useful for small-scale projects. Perceptions, on the other hand, have shifted dramatically.

An agile team is defined as a team that executes an agile project (a project that follows iterative development which results in continuous and incremental improvement.) For example, by establishing the significance of features, the team may understand the most critical aspects of a project that might provide value. When a team of software developers uses an agile methodology, they may meet a project’s deadlines and costs progressively, allowing it to be launched sooner and begin earning revenue sooner.

Diverse firm personnel may come together to provide the first scope of work, i.e., the MVP (Minimum Viable Product), much more quickly than anticipated if they work cooperatively on the project.

Create a highly effective, distributed development team

When wondering “how to scale a remote team,” this is one of the most crucial things to keep in mind as you plan. Your firm will never be able to expand effectively if you recruit the wrong individuals for the job. For agile teams to work, team members must work together to accomplish tasks. The task of identifying the most qualified candidates in this industry is challenging. But one must also keep in mind that there’s intense rivalry among firms. Therefore, it has become challenging to provide above-average pay and perks to their employees.  

A distributed team provides the ability to enrich your current resources with specialists and generalists. It also gives you access to a larger global talent pool with more favorable wage expectations. And this improves your return on investment and increases your productivity.

The problem is that leading a remote team may be very difficult to manage. In your capacity as a company, you will be responsible for supplying your remote workers with the required infrastructure and technology. While some organizations choose to hire in-house staff or freelancers, the majority prefer to use an alternative method known as outsourcing.

Using an outsourced development team is a good idea

It takes a lot of time, money, and dedication to hire a new employee. If you hire someone, you have to provide them with perks like health insurance and an annual bonus, among other things. The same situation applies if you employ a freelancer. You should not expect them to devote their complete attention to your project alone. And this is because they may be working on many other projects at the same time as your project. Outsourcing is an excellent middle ground since it allows you to save time and money while still receiving total devotion. The option of outsourcing tasks that are excessively time-consuming and create undue pressure on your present employees is available to you as well. 

How to Scale Remote Teams - Outsourcing
Outsourcing is an excellent method of assembling a remote workforce

Moreover, outsourcing is a great way to build a distributed team because you don’t have the skills in-house or you have too many projects. There are several advantages to outsourcing, including the fact that there are no set costs; you will only be charged for the services you get for a particular project. In addition, outsourcing lets you quickly grow and slim down your development team with varying needs. You don’t have to worry about letting people go when the project is done or hiring quickly when the project is growing.

Choose the Most Appropriate Processes and Technology

This is another prime element to consider when discussing the topic of “how to scale remote teams.” Open communication is key to managing a remote group of people. And if you employ an agile strategy, it is critical to maintain open communication and utilize the right technologies in development. And these may include video conferencing, project management, etc. It’s essential that you automate all the automatable jobs. An automated task management system will allow the teams to focus on high-impact work instead of tedious duties.

If outsourced, you should ensure that your outsourcing contractor provides all of the tools and resources necessary for the various developers to perform their duties. Ensure that your in-house staff are in sync with your outsourced staff and have access to all the resources they need to execute their jobs.

It becomes more challenging to determine which technology is the best choice and when to invest in it as time passes. Leasing technology gear and tools is an excellent alternative to buying them, as it avoids the entire cost of the item. If you choose this route, you won’t have to stress about finding the money to buy the tools you need to get started right away. You only have to pay a monthly fee for each user and per device.

It’s essential to connect your scaling strategy with your current company demands while also planning for future expansion for scaling your remote team. If your business adapts quickly, it will be easier for your development team to keep up with changes.

Analyze and make modifications as necessary

To be successful in any undertaking, you must be open to the possibility of change. For a company to be successful, it must constantly monitor changes in the market and adapt its strategy accordingly. Develop and promote best practices for your whole team, no matter how geographically scattered they may be. To become more adaptive, your company will need to take a proactive approach to monitor the changes. 

Taking a proactive approach also helps identify relationships amongst teams, as well as the identification and mitigation of possible hazards. In the case of environments that have utilized Scrum, adapting Scrum ceremonies to the demands of each team is essential. You must also pick the most appropriate strategy for the team’s size. Retrospectives provide an excellent chance to evaluate your company’s return on investment, efficacy, and productivity.

Treinetic’s final words on how to scale a remote team

Scaling a remote development team may be difficult. But the advice provided above on how to do it will help managers and team leaders build a solid foundation for future growth and expansion.

When implementing agile techniques and putting technology and procedures into place, it is critical to identify cooperation among individuals and the dependencies between them. Assemble the right team, whether inside the company or externally contracted. Only then can you ensure that best practices and solid relationships are in place to provide a mutual understanding of the desired outcome. 

Why Startups Fail

The Most Comprehensive Guide on Why Startups Fail

You are not the only entrepreneur who worries over “why startups fail.” Did you know that 90% of startup businesses fail? It is unfortunate but true. Numerous startups have already died down with their business idea in the first few years. While only a few manage to succeed, the majority fail. 

If you plan on starting a business, this news should not discourage you. Instead, we hope you feel motivated to do what 90% of startups fail to do. To achieve that, you first have to know why startups fail. That way, you can learn from those experiences and avoid accidents along your way. It is usually not just one factor, but several reasons that prevent success. This guide will unpack the most common reasons why startups fail that every entrepreneur should know.

Why Startups Fail - Common Reasons
Why Startups Fail – Common Reasons

Why startups fail: the most common reasons 

1. Lack of market need

If no one will buy what you sell, your business is bound to fail. Often, companies run into the problem of little or no market for the product they have built. You can recognize the situation from the following signs:

When there is no good enough reason for the buyer to purchase the product 

Sometimes there is no compelling enough value proposition or exciting scenario to cause the buyer to invest in the product. 

Wrong timing

Being ahead of your time might not be a blessing in the startup world. Instead, it could be a reason why startups fail. If you are ahead of your market by a few years, that means you have a disconnect with the buyer. They may not be ready for your particular product at this stage. Before gaining great success and becoming the most lucrative corporation in the 2000s, Apple was responsible for some of the most catastrophic product failures in the history of the world. Before its introduction in 1983, the Apple Lisa had been in development for nearly three years and cost over $50 million. It was developed as a sophisticated personal computer with a graphical user interface for corporate users.

Although the computer cost $9,995, which is equivalent to an estimated $25,000 today, many customers found the pricing too costly. Apple terminated the Lisa in 1985 after only selling 100,000 units in two years of manufacture. Probably, it was too early in the 80s for consumers to invest money in personal computers with a high price tag. 

2. When you are too optimistic

A positive attitude is good, but it should not give you false hope or stand in the way of your success. One of the most common causes why startups fail is that entrepreneurs wrongly presume that they will easily attract customers. An exciting website, product, or service, does not guarantee a permanent clientele. Sure, It may work with the first few customers. However, with the emerging rivals and consumers’ requirements constantly changing, it soon becomes an expensive task to acquire customers after that. In most cases, the cost of acquiring the customer (CAC) is notably higher than the lifetime value of that customer (LTV).

The rule of the game is that you have to win your customers for less money than they will produce in value of the lifetime of your relationship with them. Yet, most entrepreneurs fail to figure out a realistic customer acquisition cost. They do not put enough thought into this critical number. These entrepreneurs fail to recognize that their business model may not work as they do not see that CAC will be higher than LTV. 

The Essence of a Business Model

It is essential to focus on what matters in your business model. To do that, you have to ask yourself the following two questions:

  1. Is it possible to find a scalable way to attract customers?
  1. If yes, can you then monetize those customers at a significantly higher level than your cost of acquisition?

Did you find answers to the questions? You see, when you break it down into simpler terms, it is straightforward and less complicated.  

Next up, look at the following rules regarding the business model. They are not as complex as they sound, rather more like simple guidelines. How it goes: CAC (Cost of Acquiring a Customer) should be less than LTV (Lifetime Value of a Customer.) But please keep in mind that the entire business model is not just about these two.

Customer Acquisition Cost
Calculating Customer Acquisition Cost

Calculating CAC

To calculate CAC, you have to take the entire cost of your sales and marketing functions. Here you should include salaries, lead generation, marketing programs, travel, etc. Then you have to divide that by the number of customers you closed within that time. For example, suppose your total sales and marketing spend in Q1 was $1m, and you closed 1000 customers. In this case, you spend $1000 on average to earn a customer.

Next, to find out the LTV, consider the gross margin associated with the customer over their lifetime. It should include net of all installation, support, and operational expenses. It is pretty easy for businesses with one-time fees. However, suppose your company has recurring revenue. Then you can calculate this by considering the regular monthly income and dividing that by the churn rate per month.

Most businesses have other functions like G&A and Product Development that are extra expenses more than marketing and sales and delivering the product for a profitable business. So you will need CAC to be significantly less than LTV. For SaaS businesses, it seems that multiple is about three to break even and that to be profitable and generate the money needed to grow. An ideal LTV to CAC ratio should be 3:1. You can test these numbers for real by getting feedback from the community on their experiences.

The Rule Around Capital Efficiency 

To have a capital-efficient business, it is also advisable to recover the expenses of acquiring your customers in under a year. Banks and wireless carriers break this rule, but that is because they can afford to do so. They have access to cheap capital, whereas you do not. So let us get back to the rule, which is; Recover CAC in less than 12 months.

3. Wrong management team

In the end, the wrong management team would become one of the top causes that leaves everyone pondering about “why startups fail.” You can never expect weak management to take your business to the top. Only a good management team will be smart enough to avoid Reasons 4 and 5, whereas weak management teams make mistakes in multiple areas such as:

Their strategy is weak

They would develop a product that no one wants. This situation happens when the management has not done enough work to validate the ideas before and during production. 

They are usually poor at execution

 As a result, the product may not get built correctly and/or on time. 

They will create weak teams under them

Only a strong management team can make a strong team of players. The weak ones hire below their skills to make themselves look good. This wrong team can be a recipe for disaster. If the cooperation between the employees does not work, if the skillset is not there, the startup business does not stand a chance either. Before you know it, the rest of the company will end up as weak as the management, and poor execution will be rampant. 

4. Running out of Money

Lack of capital resources is another unfortunate reason why startups fail. A perfect example here is the drone company Airways, which had to close its bulkheads again recently. The company desperately looked for financiers for around a year and a half. However, things did not work in their favor. Eventually, the company ran out of money and had to quit. Airway’s goal was to be a pioneer in commercial drones. 

Why Startups Fail - Lack of Capital
Lack of Funds Is One of the Most Common Causes of Startup Failures 

Unfortunately, the market did not grow as fast as Airware anticipated. Besides, there were long development cycles and missing software features that Airway’s competitors already had on offer. When Caterpillar withdrew as one of the largest financiers, the company lacked the financial resources to place itself successfully on the market. Around 120 employees were out of a job after the business had burned $118 million in cash. 

It is essential to know how much cash is left. The CEO should also understand if the company has enough money to drive the business to a milestone that can provide successful financing or positive cash flow. 

Milestones to Raise cash

You cannot expect the valuations of a startup to change linearly over time. Just because it was a year since you raised your series A round does not mean that you are now worth more. Instead, companies need to reach important milestones to increase in valuation. To understand the rules further, take a look at the following example regarding a software company:

1. Progress from Seed round valuation

Here, the goal is to remove a significant element of risk. It could be hiring a key team member, proving that you can overcome some technical obstacle, or developing a prototype and getting customer feedback.

2. Product in Beta test, with customer validation

It is essential to realize that if there is no customer validation to the finished product yet, do not expect the valuation to increase much. Note that the customer validation part is the key here. 

3. Shipping 

The product is shipping, and early customers have already paid for it. They are using it in production, and the reactions are positive.

4. Issues

Product/Market fit issues, like some missing features, have been eliminated for the most part. You are starting to see early indications of the business beginning to elevate.

5. Business model 

The business model is now proven. At this point, it is clear how to acquire customers, and also data shows that you can scale this process. The cost for earning customers is low enough, and the available data shows that the startup can be profitable because monetization from each customer goes beyond this cost.

The business has scaled well but requires more funding to accelerate expansion further. This capital might expand internationally, accelerate growth in a land grab market situation, or fund working capital needs as the business grows.

How things can go south

Things can go wrong when the management fails to reach the next milestone before cash runs out. It can cause the startup to run out of money and also fail to raise additional funds. Although sometimes it could still be possible to raise cash, the valuation will be lower.

When to hit the Accelerator Pedal

Knowledge of regulating the accelerator pedal is essential to avoid failures. And the task is up to the company’s CEO, who’s in the driving seat, to do the right thing at the right time. Suppose the product is still developing in the early stages of a business. At this point, you must focus on saving money by lightly setting the pedal. It is not the right time to hire lots of sales and marketing people if the startup is still working on the product to the point where it meets the market need. If a company makes this mistake, it will result in a fast burn and frustration.

Later, there comes a time when you should press the accelerator pedal down hard- as hard as the capital resources available to your company permit. That is when statistics finally indicate the cost to attract a customer (and you can maintain this cost as you grow) and monetize those customers at a significantly higher rate than CAC. It could be three times higher as a rough starting point. And it should also indicate that you can recover CAC in under a year.

Of course, knowing how to react when they reach this point can be tricky for first-time CEOs. So far, they have been maniacally guarding every penny of the company’s cash and holding back as much as possible. At this point, they have to change their ways. Suddenly they have to throw a switch and start investing aggressively ahead of income. It could involve hiring multiple salespeople monthly or spending considerable sums on search engine marketing (SEM). That switch can be very counterintuitive.

5. Why startups fail: product problems

Companies fail when they cannot create a product that meets the market need. Sometimes it can either be because of execution. Or else it can be more of a strategic problem, which is failure to achieve Product/Market fit.

Product Problems - Why Startups Fail
Startups Can Fail Because of Product Problems

Usually, the first product that a startup introduces will not completely meet what the market requires. If you are lucky, it will only take a few revisions until the product is the right fit. In some cases, the product will be way off base and may force you to go back to square one and completely alter the original idea. This unfortunate situation is a classic indication of an incompetent team. It implies that they did not validate their ideas with customers before and during development.

6. Getting outcompeted

Another reason why startups fail is when stronger competitors overtake them. Most businesses end up with no choice but to quit when they face competition. Take Wesabe, for instance. It was a failed online personal financial management service outdone by Mint. Mint saw the weaknesses of Wesabe’s MVP and waited to introduce the platform until they had developed a better solution. It gave Mint a competitive edge. While Wesabe was comparatively more powerful and offered more functions, it was more difficult to operate.

7. Costs and pricing

A business should present a high enough price to cover costs but low enough to acquire customers. Unfortunately, many startups fail to do so, which prevents their success. The perfect example to explain this is Delight. The business had the idea to develop a new type of mobile analysis: visual analysis. They decided their most expensive monthly plan was going to be $300. Their customers had higher expectations for this price point. Add to that the poorly chosen billing model. 

The company calculated the cost according to the number of recording credits. Their customers did not influence the duration of the recordings, so most of them were being careful when using up the credits. It would have made more sense if Delight based pricing models on the accumulated length of recordings. Also, it would have increased the number of subscriptions.

Wrapping Up 

Now that you understand the reasons “why startups fail,” it’s essential to address any mistakes you may have made. Today’s markets are very competitive, which means you must have a sound business strategy and a management team to survive and thrive in this environment. Please refer to our blog for further helpful articles on raising funding for startups to ensure that you do not run out of money in the future. Even if you fail once, it does not always follow that you will fall again. Nonetheless, repeating the same mistakes will almost certainly fail.

How to Seed Funding for Startups

The Most Complete Guide to Seed Funding for Startups

There’s a typical dilemma that many business owners confront at some point. A solid concept with great potential, the seeds of a fantastic team, and an established strategy for bringing their business to market are all assets they possess. However, there is one element that is lacking. Finances to get things started and the know-how to secure those funds. So, entrepreneurs have to deal with the same two issues. And it is at this point that your knowledge of “how to seed funding for startups” will come in handy.

This article will assist you in overcoming the difficulties mentioned above so that you can get off the ground.

What is seed funding for startups?

Investopedia defines seed funding as money that comes from any source that helps a company get off the ground and into the stage of its business when ideas become realities. Companies may use seed capital to launch a particular product or idea or even enter a new market with the help of various investors.

Unlike a loan, seed funding is not a form of financial aid. As a condition of receiving funding, business owners often provide investors with an ownership stake in the firm and a percentage of the company’s earnings in return for their capital investments. Angel investors, friends, family members, and the original firm founders are often the sources of early investment for startups. In addition to bank loans, a startup may seek capital from angel investors, which is usually favored in its early stages. According to, seed investments typically range between $500k and $2 million.

Starting a business from the ground up necessitates the use of seed funding. The firm has not yet shown its worth in the market, as a result of which it bears a somewhat high risk.

Startup Funding Stages
Seed Funds Help a Business Get off the Ground

What’s the importance of seed funding for startups?

Many entrepreneurs cannot reach the stage where their product is ready for sale unless they have raised a significant amount of funding. Many costs add up quickly when you start a business. These costs include product development, employee salaries, infrastructure costs, etc. You could spend a lot of money before you even have a product to sell.

These and other critical growth phases are made possible by seed funding for startups. In addition, seed funding helps founders spend on early marketing and public relations, essential appointments, such as bringing on a Vice President of Product or a Chief Technology Officer, and forming a productive sales team.

When is the right time to raise seed funding for startups?

Raising initial investment for a startup may be a complex process to time correctly. As a rule of thumb, you should only talk to seed investors if you think you are in a stable position. As such, you have a strong enough product, market, team, or combination of those things. So, you are almost ready to build a company that deserves to be backed by venture capital. In other words, you can expand and develop your business to the point where an investor can get a good return on their investment.

Founders should seek funds after they have determined the market potential and who the client is, and when they have developed a product that meets their demands and is being accepted at an exceptionally remarkable rate. Furthermore, to obtain funds, entrepreneurs must impress investors. Those who failed to impress investors the first time must focus more on improving their business concepts and products. If you believe that your company has what it takes to deliver significant returns to an investor, it is most certainly time to begin the fundraising process.

Steps to obtain seed funding for startups

It doesn’t matter which route you choose. The first step in securing seed funding for startups is enhancing your company’s visibility. Participating in networking events, attending conferences, and developing your online presence on social media all raise the likelihood that you will attract investors’ notice.

Prepare to talk about your company in the next step. At this point, you should have a well-thought-out business strategy that includes reasonable forecasts for expenses, revenues, and future development. In doing a detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for your company, you will demonstrate your understanding of how your company fits into the broader market. Do you have a network of mentors or experts in your field that can help you? Don’t forget to link investors to resources that may provide them with in-depth information about your concept or product.

SWOT Analysis for Startups

You can follow these steps for seed funding for startups

1. Decide on the type of funding you want

There are various options for obtaining seed money, each with its own set of advantages and disadvantages:

1. Venture Capitalists

Venture capitalists (VCs) are entities that have been specifically created to give finance to businesses. The most traditional fundraising option, mainly as you go through Series A investment and beyond, is via venture capital. Most venture capitalists (but not all) are amenable to seed money. And you should expect these investors to be quite conscientious, frequently demanding many meetings and the participation of numerous stakeholders.

2. Angel Investors

Angel investors are the second most prevalent form of investor for seed funding for startups, behind venture capitalists. Unlike venture capitalists (VCs), angels are wealthy individuals who invest in early-stage enterprises with their own money. Obtaining initial capital from angel investors may be a speedier procedure that requires less due diligence. Nevertheless, angel investors often seek a more significant ownership stake in return.

3. Friends and family

Many early-stage enterprises get initial investment from friends or members of their families. This provides you with a little more freedom in terms, as you may approach it as a loan rather than an equity exchange. But it also introduces the difficulty of combining your professional and personal lives, which can rapidly become a cause for catastrophe if not handled properly.

4. Crowdfunding

Sites like Kickstarter have made crowdfunding a popular alternative to traditional venture capital, enabling thousands of entrepreneurs to begin their businesses. So, this has recently become a favored method for seed funding for startups. Creating a crowdfunding campaign based on product pre-sales and then persuading hundreds or thousands of contributors to invest in your product before it hits the market is how this kind of seed fundraising is often accomplished. You may produce the product and fulfill the requests of each of the early investors if you gather enough funds. And this does not require sharing the stakes as well. 

5. Accelerators and Incubators

Many companies, like Y Combinator, are called accelerators or incubators because they help people start and grow businesses. For their services, it’s not unusual for these corporations to ask for stock in return. And in certain situations, they may be able to offer startup money for smaller businesses.

6. Bootstrap

Keep in mind that not all businesses need outside capital to be successful. Making an investment of your own money or just depending on your firm’s income to fund future development is what bootstrapping a startup is all about. Bootstrapping enterprises that achieve success is not the norm. But there are some exceptional instances of bootstrapped businesses worth mentioning (Facebook and Apple, to name two).

Funding Methods for Startups
A Summary of Funding Methods for Startups

2. Calculate the amount of seed money you will need

Overlooking this stage is typical when seeking seed investment for new businesses. Don’t be tempted to request an excessive amount of startup financing. But how much is too much in this case?

Start by calculating your current monthly expenses. Next, estimate how many months it will take to get your company up and running from that point on. What changes do you expect to occur in your company over that time period, and what influence will this have on your costs? To account for unforeseeable variables, add a percentage to the top of it after you’ve calculated a value.

Your business’s value will ultimately determine how much money you can raise via a crowdfunding campaign. When it comes to raising seed funding for startups that are just laying the foundation and getting off the ground, the focus will be on the company’s growth potential rather than on the value of its assets or intellectual property. The amount of growth your business will make with various investments of varying sizes, as well as the percentage of the company you’ll have to give up to get that initial money, must all be taken into account.

3. Make a plan for approaching potential investors

To feel comfortable investing their money in your firm, investors need to see indications of potential success. In other words, whether they believe you and your team are the best individuals to bring the vision to life will play a role in their selection. However, a large portion of their judgment will be based on objective criteria, such as detailed plans and financial projections.

You should have an executive summary and a pitch deck ready to go that includes:

  • Identifying information about your firm, such as its name, logo, or slogan
  • Your long-term objectives
  • The issues that your product addresses are
  • Who is your ideal customer?
  • What you’ve developed and why now is the right time.
  • The market size that can be targeted
  • Your traction
  • Your company’s business model
  • Predictions on the financial situation (revenue, expenses, profit)
  • An in-depth examination of overhead costs, including utility bills, salaries, rent, product development costs
  • Long-term strategy for future product development as well as financial planning (beyond the runway this funding provides)
  • You and your team, including who they are and what they bring to the table
  • What you’ve previously raised and what you’re hoping for in terms of fundraising

4. Create a list of potential investors to contact

Obtaining seed funding for a startup may be a time-consuming and challenging process. As a startup, you’ll have to meet with several possible investors. The easiest way to think about this is in terms of an investor funnel. What you’re really doing here is creating an investment pipeline. Because each possible investor is a fresh lead, you want to make sure that you do the following: 

  • Make sure that the investors at the top of your funnel match the characteristics of your ideal investor persona.
  • Leads should be scored and prioritized based on their importance (the investors most likely to fund you).
  • Make sure that you work on each of those connections all the way down the funnel until you win the deal.
  • Use active investor search services such as Visible Connect to find active investors that suit your needs.
Investor Funnel
Creating an Investment Pipeline Simplifies Meeting with Possible Investors

6. Meet with potential seed investors

Meeting with investors is a talent that you’ll develop through time and practice. To your advantage, you’ll have plenty of hands-on experience dealing with a variety of potential investors before you ever sign a contract. The following are the essential guidelines to remember while meeting with possible seed investors:

  • Ascertain who your target audience is before you begin (the investor, not your customer). Recognize the types of investments they make and why they do so.
  • Make your pitch as simple as possible. Concentrate on the most critical elements and keep them short and sweet.
  • To show respect, learn from their comments, and create mutual trust, pay close attention to what they have to say.
  • Pitch your goal, and make it a big one. But be sure to back it up with data and statistics.
  • Make sure you strike a fine balance between self-assurance and humility. You want to demonstrate that you believe in your concept and are a capable entrepreneur. But you don’t want to come off as arrogant in your approach.

7. Finalize the terms of the agreement

For many entrepreneurs, negotiating may be a difficult task. Because a VC or angel investor performs this daily, you’ll most likely find yourself on the defensive side because they’re much more experienced than you are. It is therefore preferable not to engage in real-time negotiations.

It might be tempting to accept the first offer you get. And although you definitely don’t want to waste any time, it’s worthwhile to try to bargain on variables such as equity compensation if you have the opportunity.

One percent of a $100 million firm is worth $1 million, so consider how much future value you’re giving up by investing now. But don’t let the opportunity pass you by. You must get the funds into your account as quickly as possible. So, after you and your partner have reached an agreement, sign the documents and settle up.

Takeaways to Remember

It’s no secret that seed funding for startups is a complicated process. Do you want to offer your startup the best possible chance of success? Understanding is ultimately essential, and we hope our information on initial capital for entrepreneurs has been of use in that regard.

Additionally, you must be familiar with the various sorts of investors, their strengths and weaknesses, and how they make investment choices to appreciate better how seed funding might benefit your organization. If you follow these steps, you will be well on your way to obtaining the seed funding for startups that will put your company on the path to success.

How to Value Startup

The Most Complete Guide on How to Value Your Startup

How to value your startup is something that every entrepreneur should know. However, figuring out how much your startup is worth is not an easy task. Because commercial success remains in infancy in their early stages, their values will be based on assumptions about the future at these early stages. Furthermore, future forecasts are often unreliable. Because of this skepticism, investors often believe that everything will take way longer and cost twice as much as they initially envisioned.

To obtain capital and produce liquidity for their investments, entrepreneurs and investors alike must place value on startups. Let’s evaluate everything today. So, the purpose of this article is to give some advice on how to value your startup to be able to value it and raise money to fund it.

What is the startup valuation?

Let’s get to the basics before finding strategies on how to value your startup. The process of evaluating a startup comprises determining the startup company’s worth. Valuation can get difficult for startups with little or no income or profitability and unpredictable futures. Therefore, it is critical to employ startup valuation methodologies when valuing them.

Pre-revenue investors would choose a lower valuation that offers a higher return on investment, whereas business owners would want a higher valuation. Consequently, we would want to evaluate, how do pre-revenue startup valuations stack up against mature business valuations?

The actual data and numbers of a mature, publicly-listed company, as opposed to a startup in its early stages, will be more readily available. The ability to assess the worth of a firm is made simpler by a consistent stream of income and financial data. Even though most startup valuation methodologies do not include earnings, taxes, and amortization, startup owners will be able to factor in other essential elements throughout the process.

How to value your startup: the three-step process

1. You are exactly what the market thinks you are

The question of “how to value your startup” might get a bit complex from time to time. As long as investors tell you that you’re worth $1 million, you are. You could believe it’s worth a lot more than it really is. Because your business may have more than $1 million in liquid assets, more than $1 million in receivables, more than $1 million in sweat equity, or a combination of these factors, you may even feel that it is worth more. The market value will have to be accepted if you cannot secure capital for your firm with a valuation.

The opposite is sometimes true, though. Instead of professional investors, you may be able to obtain money from family and friends, which indicates that your firm has been over or undervalued. In most cases, it’s overvalued in this scenario. Consider the following scenario: it doesn’t necessarily follow that future investors will pay more than $20 per share if you can convince your father and wealthy aunt to invest in your company, even if it develops and prospers.

How to Value Startup - Investor Funding
Investors Value Your Business and Provide Funds

2. It is also possible to determine your own value in the marketplace

Although this seems to counter the argument about how to value your startup, it is possible to tell the market how much your business is worth. It’s not by accident that investors estimate your business to be worth $1 million. By definition, startups don’t have a history of making money to figure out how much they’re worth. Therefore, the responsibility for developing a method for valuing the firm based on comparables and financial predictions falls on the shoulders of the entrepreneur.


Investigate the market value of comparable firms in your sector and geographic location. Business valuation websites such as BizBuySell and BizQuest can help you determine how much businesses are selling for in your industry. You should consult accountants and attorneys if you have a high-tech or high-growth business to help you estimate the market rate for similar firms at your stage of development. In our experience, lawyers tend to overvalue companies. On the other hand, accountants tend to undervalue startups. Therefore, you may want to consult with both before deciding whether to proceed.

Predictions on the future financial situation

Even though forecasting income at a startup is notoriously tricky, you’ll need to do so to evaluate the value and, ultimately, justify your company’s price. Consider the following example: if you’re starting up a clothing business, your value and financial predictions will most likely be lower than if you’re starting up a speculative biotechnology company.

3. You aren’t truly worth anything until you start making a profit 

It’s unlikely that your business is worth a lot if you’re not making a profit at all. That is, it lacks the liquidity that a profit-generating company would have. Due to a lack of business buyers to match the number of sellers, it’s much harder sell many enterprises today. Selling an underperforming firm is almost impossible for the same reason.

As a result, startups have a challenging time determining their value. Because it takes time for new firms to become successful, the key to determining the value of startups is to keep an eye on the future. Make a timeline for when you’ll be profitable, and then plan accordingly. The value of a firm with a longer path to profitability is generally lower than that of a business with a shorter route to success.

Assessing similar firms’ profitability allows you to evaluate their market worth. And this must be done considering the stage at which the interested firm is in. If it is at a different stage compared to your firm, historical records might help. Based on things like how likely it is that the company will make money, how long it will take to get out, and how good the management team is, a company worth $5 million when it is profitable will be worth a fraction of that amount when it starts out.

How to value your startup using valuation methods?

Financial analysts may use a variety of startup valuation methodologies to determine the worth of a company. Let’s take a look at some of the most frequently utilized approaches for assessing the value of startups.

1. How to value your startup using the Berkus method

American venture capitalist and angel investor Dave Berkus describes how to value a startup enterprise by conducting a thorough analysis of five critical success factors: 

1) Basic value

2) Technology

3) Execution

4) Strategic relationships in its core market

5) Production and subsequent sales

In this procedure, the startup carries out a thorough evaluation to determine how much value the five main success factors contribute to the overall worth of the firm. The startup is valued in accordance with these metrics. This approach is also famous as the “Stage Development Method” or the “Development Stage Valuation Approach,” and it is based on the work of Berkus and his colleagues.

How to Value Startup - Berkus Method
The Bercus Method for Startup Valuation

2. The Cost-to-Replicate Methodology

This is also another helpful approach to make use of when you are looking for an answer to “how to value your startup.” The Cost-to-Duplicate Approach entails accounting for all costs and expenditures related to a company’s startup and development of its product. And this also includes the acquisition of any physical assets required for the endeavor. Accordingly, you can calculate the startup’s fair market value by considering all of the startup’s expenditures. There are a few problems with the cost-to-duplicate method:

  • Inadequate attention is given to the company’s future potential via projected claims of future sales and growth.
  • This is without taking into account its intangible assets as well as its tangible assets. There is an argument here that even in the startup stage, the company’s intangibles, such as brand value, goodwill, patent rights (if any), and so on, may have a lot to offer for their worth.

3. How to Value Your Startup Using the Risk Factor Summation Approach

Using the risk factor summation approach, you may determine the worth of a firm by taking into account all of its risks, including those that might negatively impact its return on investment, in numbers. Using any of the other approaches covered in this article, one can use the risk factor summation method to establish an estimated initial value for a fledgling company. The consequences of various sorts of business risks, whether positive or negative, need consideration when calculating this initial value. And then, an estimated value is either removed from or added to the original value, depending on the influence of the risk in question.

When all possible risks are taken into account and the “risk factor summation” is applied to the original estimated value of a business, the final assessed value of the firm is established. Management risk, political risk, manufacturing risk, market competitiveness risk, investment and capital accumulation risk, technology risk, and legal risk are some of the company risks that are taken into consideration.

Startup Valuation Risk Factor Summation
Startup Valuation Risk Factor Summation

Trenetic’s final thoughts on how to value your startup

Make sure you don’t forget that one day, you’ll have to live up to the expectations of your investors, even if you think your company is worth the most. Also appealing is changing your business plan to increase the value of your startup. At the same time, do not go so far as to change the entire business idea, as this may cause the business to fail. Be cautious about overestimating the value of your company based on erroneous assumptions. If your investors have governance rights, such as positions on the company’s board of directors, this will only make your job more difficult.

When it comes to determining the value of their fledgling company, entrepreneurs must think like artists. Creating a successful company requires both the left and right sides of your brain to work together. You will also benefit from reading our post on how to raise funds for a startup

How to Bootstrap Startup

How to Bootstrap Startup | The Definitive Guide

It is not always possible for all startups to get investment funding straight away. And it is at this point that knowing how to bootstrap a startup will be beneficial to you. Bootstrapping a company, which means financing it entirely out of your own money, is sometimes necessary. Bootstrapping a business is a noble approach to starting a business. But it is also more complex than it seems at first glance. If a first-time entrepreneur cannot demonstrate some traction and a strategy for future success, they may have difficulty obtaining financing.

This article contains our best advice on surviving the bootstrapping journey, based on our own personal experience and research.

What exactly does the term “bootstrap” imply in the context of a startup?

Let’s take a step back and look at the idea of “how to bootstrap a startup.” According to Investopedia, a circumstance in which an entrepreneur launches a firm with minimal capital and relies on sources other than outside investment is referred to as “bootstrapping.” In other words, trying to start and grow a business with only the money you have on hand or the money you make from your new business is known as bootstrapping. Additionally, bootstrapping describes a process for calculating the zero-coupon yield curve using market data.

Bootstrapping a Business - Definition
Bootstrapping a Startup Definition

How to bootstrap your startup: expert tips

Now that you understand what it means to bootstrap a business, let’s dig into the specifics of how to bootstrap a startup:

1. Select a co-founder with consideration

When looking for answers on how to bootstrap a startup, this is one of the most important factors to consider. Having two different points of view when leading a firm may be really beneficial. When bootstrapping, the vast amount of the work is done internally. And this means that co-founders’ skill sets must complement one another. If you and your partner are both skilled at something different, you will have a higher chance of accomplishing everything together while keeping costs down.

2. How to bootstrap a startup: get creative with startup funds

To establish a business, money is necessary—sometimes a lot of money. As a result, you’ll need to find a source of startup investment. But it doesn’t imply that you have to hand up a portion of your company’s stock or seek outside financing. You may be able to depend on credit cards and the personal funds of startup founders to get your new business up and running throughout the early phases of its development.

Getting innovative might well be necessary when launching a bootstrapped startup. Create your business model to start selling services or products right away. Selling a quality and well-developed product or service is always better than losing the startup in the long run. And this allows you to build cash flow immediately. The time spent developing a thorough business plan that details all of your expenditures is never a waste of time. It assists you in better understanding the costs involved and the length of time it may take to pay off those credit card debts.

3. Keep an eye on your cash daily.

When addressing the hot topic of “how to bootstrap a startup,” the necessity of cash management becomes immediately apparent. It is careless and unsafe to spend money from a personal bank account. Make a deposit into a business-specific bank account instead. You can keep track of how much money is coming in and going out of your business by setting up a separate business account. Free apps such as Mint can assist you in keeping track of your expenditures and calculating the burn rate of your savings. Keep a close eye on your money every day.

How to Bootstrap Startup - Time and Money Management
Keeping an Eye on Cash in a Timely Manner Is Essential When Bootstrapping a Startup 

4. Save your money

It is not always necessary to be ostentatious to get the task done. Instead of luxurious office space, choose something more functional. Free business cards may be printed, but not on the top quality paper with the expensive ink. Instead of purchasing the most recent MacBook Air, consider buying a secondhand computer. Take advantage of free banking services. Saving money on simple things adds up over time. In the absence of external funding, this is crucial. Because of this, you are looking for a realistic, risk-free means of saving money. So, this is one of the most important factors to consider when determining how to bootstrap a startup.

5. Consider Outsourcing

You could find yourself in a situation where you need to expand your team. But you lack the funds or stability to do so on a full-time basis. During this period of expansion, you should consider delegating part of your work to competent freelancers or independent contractors. It is possible to save money on the cost by employing a freelancer compared to the cost of recruiting a permanent employee.

If you decide to outsource any of your labor, be attentive and cautious throughout the process. You need to think about what kind of work you want to outsource and what type of person you want to hire. There are many outsourcing firms to choose from, but finding competent and dependable personnel may be difficult. Instead of searching for a freelancer on your own, look for recommendations from other company owners.

Outsourcing Benefits
Consider Outsourcing When Bootstrapping a Startup

6. Embrace the concept of “slow growth.”

Because of limited finance, it’s easy to get disappointed as an entrepreneur with a promising business concept who is pushed to expand their company more slowly. On the other hand, experts believe that slowing down might be a blessing in disguise.

Due to the forced slowing of growth that you will experience when you bootstrap your firm, you can become more mindful of how you are spending your money. Moreover, your business decisions will become more methodical and cautious as a result. The ability to take a step back and examine each decision will assist you in ensuring that your company is established sensibly. 

Slowing down will allow more real-world data to flow in, and if the management is keen on statistical analysis, they can use it. This data takes some time to generate (as it is generated due to internal and external business processes). Statistical analysis with this data can guide and support business decisions to a great extent. Those decisions will be way less prone to error when compared to decisions taken without such an analysis.And this considerably increases the likelihood of its success.

6. When chasing revenue, use caution.

Keep in mind that your aim is to get as much traction as possible to raise a large amount of money. You will inevitably come across opportunities to expand your business, even if it means making significant changes to your business strategy or product line. However, this is one of the things that many individuals overlook while looking for ideas on how to bootstrap a startup. 

Before taking advantage of these changes, consider your options. Take advantage of them if they are in accordance with your long-term objectives. They should be rejected if they cause a complete change in the business or product lines. And this is because, even if it may seem advantageous at first glance, it might cause the startup to lose profit over the current output, finally reducing the overall revenue. What seems to be a revenue landing at an early stage may really be a distraction from establishing a genuine, sustainable company.

7. How to bootstrap a startup: Focus on your customers

A key strategy for bootstrappers when operating with limited resources is to concentrate on customers from the beginning of their business. Engaging with prospective consumers on social media may provide valuable feedback that can be used to guide anything from your marketing approach to the design and launch of your products. It goes without saying that the more engaged your company is with its consumers, the more aware you will be of what they are seeking and how they will react to your company, its products, and its services.

Concentrating on offering excellent customer service is just as vital as everything else. You can cultivate customer loyalty and valuable customer recommendations when your company is willing to go above and beyond to ensure that your customers have a great experience with your company. Referrals may help you grow your company without having to spend more money on advertising or marketing. In conclusion, clients are one of the most important aspects to consider when determining how to bootstrap a firm.

Focus on your Customers - Jack Ma
Concentrate on Customers from the Beginning of Your Business

8. Look for a profitable model

Even though it seems obvious, it is essential to emphasize. Businesses that employ the bootstrapping approach are the most successful in generating revenue rapidly. 

Big, creative, and brilliant ideas are often the seeds of a successful startup. In contrast, if you do not effectively put your ideas into action, even the most brilliant ones will quickly fade and fail. That is why, at the heart of any successful startup, there must be a good, lucrative business model. The conception of an idea is just the first stage in establishing a company. To attract the attention of your target audience, you must, without a doubt, provide the marketplace with something exciting, new, and different. However, this isn’t even close to being sufficient.

Business models are the framework within which you will operate and will have a significant impact on your marketing and advertising activities. And ultimately, the success of your new endeavor.

Among the many possibilities are party and event organizing and web design. There are also ways to speed things up, like using technology and emailing your invoices.

Are you ready to bootstrap your startup now?

So, we provided a good quantity of information on establishing a business on a shoestring budget. Bootstrapped firms are creating history and achieving great success in their endeavors. Running a business might be difficult, but you should prepare yourself to overcome any obstacles that arise. Always keep your backup plans (B and C) on hand. And make sure to keep your business running and pay all of your expenses.

A list of successful bootstrapped firms began small with personal funds and grew into multi-billion-dollar enterprises. And they include companies such as Facebook, Apple, eBay, and others. Every situation necessitates the seizing of the appropriate opportunity at the right moment. Explore the environment around you, keep an eye out for signs of future development, and make plans based on your interests and interests on customers as well. And this is because a reasonable amount of research and the willingness to take risks is a solid beginning point.

Myths About Startups

Myths About Startups That You Should Ignore

In the startup world, many things go around in circles. And these include the challenges, ideas, and facts that must be considered when setting up a startup or running a business. In the face of such challenges, myths emerge. Myths about startups are one of the reasons many confused entrepreneurs are hesitant to put their thoughts and ideas into action.

In today’s economy, many people start businesses, and many of them have received bad advice or stories that scare them. When you start your own business, you’re likely to get many of these things. But if you have the right tools and mindset, you don’t need to listen to most of that.

The following are some of the most common myths about startups: Besides that, let’s talk about why you shouldn’t pay attention to them while you’re working hard to get your startup off the ground. Let’s debunk those falsehoods right now, without further ado.

Myths About Startups That You Should Ignore

Myth 1: You don’t need a company culture when you first start out

This is one of the myths about startups that might derail your dreams and turn you into a failure. Consider the following scenario: you’re a group of four, six, or ten people. In this context, it seems obvious that focusing on corporate culture is a waste of time. You’ve just gotten started.

Right now, it would help if you had users, marketing tactics, and code that are both elegant and effective. Who has the time or the inclination to consider their company’s culture at this stage? But the truth is the opposite. Building a corporate culture from the ground up is among the most significant factors in the success of any organization.

Companies should care about their culture because it is the basic cornerstone of any business. A strong culture reflects an understanding that employees are the most valuable asset a company has and that preserving its employees is the most effective means of ensuring sustained success. 

Employees are more likely to like their jobs when their needs and values align with those of their employers. And this is the case in companies with strong corporate cultures. It is more likely that you will have better interactions with colleagues and be more productive if you work in an environment where the culture is a good match. Hopefully, by now, you’ve learned that this is one of the most widespread myths about startups and that you should avoid believing it at all costs!

Company Culture for Startups
The Elements of Company Culture

Myths About Startups 2: A company must have a unique idea to be successful

There is a misconception that startups are young companies with a novel business idea, a desire to make an immediate impact, and a desire to take over the market. This is one of the troubling myths about startups. Many people have this misguided belief since startup success stories like those of Mark Zuckerberg, Larry Page, Elon Musk, and Jack Ma are often cited as role models.

The uniqueness of their idea alone doesn’t make them successful, though. Instead, it’s because of their business model, how they market their products, and how they treat customers that they are so successful. Despite popular belief, Facebook was not the first social networking site. It was a rip-off of the houseSYSTEM and Myspace social networking sites. Google was neither the first search engine nor the most popular. In this case, Overture was the culprit. Google did not originate the concept of search monetization.

Zynga did not create Farmville; rather, it was a copycat version of Farmtown. The Chinese game HappyFarm was the inspiration for Farmtown. Microsoft Windows was not the first graphical user interface operating system. In reality, it was technologically inferior to its opponents. But it was able to win the market share battle opposing IBM and Apple because of its superior marketing. This was simply because Microsoft had a better understanding of what customers genuinely needed than either IBM or Apple.

Myths About Startups - Fresh Ideas
Having a Fresh Idea Is Great, But It’s Not the Sole Determiner of Success

Myth 3: You will not be successful in a startup because you do not have sufficient business knowledge

This is one of the trickiest myths about startups to debunk since it is so widespread. But don’t misunderstand what we’re saying. To be successful in business, you must understand the industry. Nonetheless, becoming a successful entrepreneur does not require an extensive understanding of the business world. Profits and costs are business fundamentals, so understanding them is not difficult. If you want to make money, you should buy things at a lower price and sell them for more money than you paid for them. Take training classes to fill up the gaps in your expertise if you don’t have adequate knowledge right now. In today’s world, taking courses doesn’t always imply attending an expensive institution.

There are several online learning resources available to you. Most importantly, you may assemble a group of individuals who have the necessary experience and knowledge to supplement your own.

Myth 4: If your business is not the first to produce a particular product or service, you will not be successful in your startup

Unfortunately, this is one of the common myths about startups that deters many would-be entrepreneurs. Some would-be entrepreneurs have decided to give up since another business has already done something similar to their original concept. Although being the first to market is preferable, it is not necessary. First to market may also imply first to fail in certain cases. Even though MySpace existed before Facebook, look at what happened in the end

MySpace is no longer mentioned in any context. Trying to be the first isn’t the goal. Creating your own niche and branding your product or service is what will make you a successful entrepreneur in this day and age. Maintain a constant focus on developing your company while taking notes from the industry and your competitors.

Facebook VS MySpace Visitors
Total Unique Visitors: Facebook VS MySpace

Myths About Startups No. 5: Startups Always Require the Support of an Investor

Many successful companies have been launched without the support of a major investor, even though you need to be financially solid to get your business off the ground. Virgin founder Richard Branson did not accept any outside funding during his early years in business. In his dorm room at the age of nineteen, Michael Dell, the current CEO of Dell Technologies, began selling computers without the assistance of any other investors.

You shouldn’t believe that securing an investor is the sole option if you don’t have the money or resources to launch your firm independently. There are a variety of additional options for obtaining financial support, including:

  • Speaking with your local bank about obtaining a loan
  • Crowdfunding (in-person or online).
  • Making use of online lenders
  • Ask your friends and family for help.

Myth 6: If you don’t achieve success within a year, you will never succeed

One of the most widespread myths about startups is that they need a lot of capital. It’s a tragedy that many young entrepreneurs give up their startups due to this. At the risk of seeming repetitive, let’s revisit the numerous entrepreneurs who struggled for years before finding success. Steven Spielberg, the renowned American film director and producer. Walt Disney and Henry Ford are two of the most famous people in the world. Mark Cuban is a businessman from Miami, Florida. Steve Jobs is a revolutionary American entrepreneur.

Now and then, a poor entrepreneur comes up with an idea and, a year later, has millions of dollars stashed away in his bank account. But this is an exception, not a general norm. It would help if you gave yourself a lot of time to try out your new ideas. If you fail, try again.

Myth 7: You have to put in a lot of hours, never sleep, and generally be miserable to succeed

Working hard is one thing, and working harder beyond your limits and getting exhausted and feeling miserable is another thing. Among the most common myths about startups and life is that they’re dreadful experiences. Nothing else is happening in your life as you spend your days and nights at the workplace, powered by energy drinks and pizza. Instead of encouraging outrageous work hours, we’ve discovered that developing a very stable daily routine is much more effective.

What we do, in reality, runs contrary to the commonly held view that working hours at a startup must be prolonged. You can’t give up today to save yourself for the future. For your startup’s success, you must work both smarter and harder. When you work hard, don’t make it seem like you have to work nonstop for the whole year without a day off.

Myths About Startups - Overworking
Overworking Is a Killer

Myth 8: You are not allowed to share numbers or sensitive information

The idea that, as a startup, you must keep your financials under wraps is another fallacy that we are devoted to dispelling as much as we can. After all, you are a small business, and disclosing your most sensitive secrets will result in your demise! We discovered that the opposite was true.

We were upfront about finding our investors, how much money we were making, and our long-term goals for being an open corporation. And we feel that being transparent and sharing our success has helped us build goodwill among our users and our colleagues in the business.

Treinetic’s Thoughts on Myths About Startups

Everything has a beginning, no matter how small or big it may be. Furthermore, understanding the difference between startup myths and startup realities is critical before launching your own startup business. These myths should be kept in mind while you’re getting ready to launch your startup.

We’re not arguing that rapid success is impossible or that you shouldn’t be enthusiastic about your startup. It’s important to remember that starting a business is a long-term endeavor that requires patience, hard work, and perseverance. In our case, we’re an award-winning business because we’ve got the right mindset and reasonable expectations. You can start pursuing your business dream right now and become an award-winning company like us.

Dedicated Teams Pros and Cons

Dedicated Team Pros and Cons | Comprehensive Guide

Our discussion today will mostly focus on dedicated team pros and cons. Why? Because according to a recent report from Grandview Research, the worldwide software development outsourcing market will increase at an annual rate of 7.7 percent from 2021 to 2027. And this will bring the industry’s total revenue to $937 billion in only six years from now. Without further ado, let’s get to the main topic now. 

Global Outsourcing Rates 2019
Global Outsourcing Rates 2019

What Is a Dedicated Team Model and How Does It Work?

Before getting to the dedicated team’s pros and cons, let’s understand this model. Working remotely, the dedicated team model (DTM) may speed up the time it takes a new product to market while also streamlining the company’s operations that use it. This team is not an extension of the client’s team. It’s a separate entity with its own structure and management. And this makes it less reliant on the customer than other software development models.

In addition to the dedicated team model, there are many different types of outsourcing methods. For example, you can compare the dedicated team with the fixed-price model. But dedicated teams of pros and cons can make it a better choice than other models in many cases.

Reasons for Contracting Out Your Software Development Project to a Third-Party

The use of remote work for in-house software developers is encouraged, and companies are pushed to comply. Outsourcing professionals have already mastered a new work model, and it is now up to in-house employees to adopt it. We can no longer afford to ignore the importance of working remotely.

Software outsourcing provides the following benefits, which make it the ideal choice in today’s fast-paced IT world:

  • It allows you to concentrate on the most important areas of your business.
  • Aids in operating cost reduction and control
  • Flexibility in terms of staffing
  • Having access to the top capabilities

Dedicated team pros and cons

Now that you know what the dedicated team model is, let’s get to the dedicated team pros and cons. Let’s start with the pros.

The Pros of Dedicated Teams

A dedicated project team structure has several benefits over other models. We’ll go through the most important ones here.

1. Efficient Collaboration

The client and the dedicated team members collaborate closely to achieve a specified goal and provide tangible outcomes for all parties involved. They connect with one another regularly and engage in brainstorming sessions. And this is to identify the process’s strengths and weaknesses and optimize workflows and long-term planning.

This strategy is necessary for the prompt resolution of unanticipated challenges as well as the successful completion of project-related obstacles.

2. Faster development

How fast would you want to get the job completed? Another benefit of dedicated models is their increased speed. They may significantly accelerate the process by bringing their knowledge and skills to the table and rapidly adjusting to new needs.

3. Project Requirements Flexibility

When you do not yet have a clear development plan and need to update your project regularly, the dedicated model is ideal. Compared to the fixed-price model, which employs waterfall as a regular operating approach, one of the primary advantages of dedicated teams is their flexibility. Any changes to the project scope are welcome by your dedicated team.

4. Efficiency in terms of costs

Cost-effectiveness is one of the most important facts to highlight when reviewing dedicated teams’ pros and cons. In most cases, hiring a dedicated team for a project is less expensive than hiring in-house professionals. And this is especially true if the team is based in a region where development expenses are much lower than in your country or region. 

A team of professionals with a track record of successfully completing comparable projects to yours would not break the bank. This is highly applicable to outsourced, dedicated development teams in Sri Lanka. They will do the essential work without sacrificing the quality of the final product. It’s a fantastic opportunity to lower your human resources expenses and the overheads associated with hiring new staff.

5. A Focused Approach

Having a focused approach is one of the most significant benefits of working on a project with a committed team. All individuals working on the project will devote their whole attention to it, dismissing any possible distractions. Not only that, but there’s more. Flexible in that it may be reconfigured at any moment to meet the current requirements and demands of the project, ensuring that the project is completed more quickly and with superior outcomes than it would otherwise.

6. Transparent Management

Customer access to time tracking and task management systems is available upon request by dedicated teams. This enables them to stay on the same page while also keeping track of their progress.

In addition, regular contact through messaging apps such as Slack and Telegram and the daily reports that you will get will help ensure transparent administration.

7. Experience and expertise in the relevant field

By outsourcing to dedicated software development teams, you ensure that your project is managed by experts who possess the essential skills and competence. Most of the time, these individuals have previously accomplished projects with goals identical to yours. They can provide you with valuable guidance and consider even the smallest aspects that you may have overlooked.

After a period of time spent working together, they have refined their processes and acquired the necessary expertise to delegate duties. You’ll save time, avoid potential problems, and reap the many benefits of not starting from scratch.

Dedicated Team Model Pros
Pros of Dedicated Teams

Cons of a dedicated team

Since this article is about dedicated team pros and cons, let’s figure out the cons so that you can take action to avoid them. It’s not appropriate for every scenario, and there are a few problems, just like with every other engagement model. The following section discusses the most significant drawbacks of the dedicated team concept.

1. For a short-term project, the efficiency is low

It is more cost-effective to engage a dedicated development team when working on large projects that are continually evolving, whose specifications are variable, and whose requirements change regularly. It is preferable to go with a different model in all other circumstances.

2. It’s not a one-size-fits-all solution

Ensure that the model you choose is precisely what you’re looking for before getting into any agreements. Suppose your project may be long-term in nature, but you have clearly defined objectives and a set of criteria that seems to be definitive. In this case, signing a contract with a dedicated team may be a risky move for your organization.

3. Different Time Zones

Different time zones may become a severe issue when an overseas corporation is involved. However, if the team adheres to agile development principles, this issue may be readily resolved.

After weighing dedicated team pros and cons, you will greatly benefit from knowing how a dedicated team helps grow your business.

Dedicated Team Model Cons
Cons of Dedicated Teams

Some Advice on Choosing an Outsourcing Software Development Team

Let’s get to the next stage, as you have a better understanding of dedicated team pros and cons now. So you’ve decided to hire a group of people to collaborate with you. However, how does one go about selecting a winning team? The simple steps described below will guide you through the process of securing the best of the breed.

1. Request References

Contact current and former customers to inquire about their satisfaction with selecting experts, communication, quality assurance, and product development. This kind of feedback is always the most reliable indicator of overall quality.

2. Discuss the approach to work that you will take

When working with a dedicated team on complicated and long-term software projects, we believe that the agile development approach is the most effective way to solve the problem. It enables to build the project in stages, beginning with identifying the highest priority needs. Additionally, Agile delivers high transparency on the project’s progress.

3. Take a look at the Portfolio

This is where you may look at earlier work and decide whether or not you want to pursue it further.

4. Find out about the rates and talk about how the billing process will work

Various companies charge different fees, which may either be in line with your budget or leave a dent in your pocketbook. This will assist you in planning your budget and making modifications as necessary. Keep in mind that saving money should never come at the expense of quality or overall trustworthiness!

5. Identify the provided documents

We record every step to minimize the possibility of misunderstandings. And we aim to increase team communication in every way that we can. To do this, we determined the most appropriate tools for the job:

  • Team and project management.
  • Tracking of bugs and issues
  • System of code review
  • The administration of source code and repositories
  • Release management.
Dedicated Team Model - How to Choose
Choosing Your Dedicated Teams

Dedicated Teams at Treinetic

Treinetic’s professionals have a wealth of knowledge and expertise in establishing and managing successful dedicated teams for organizations of all sizes, from multinational enterprises to start-up companies. A team’s performance is heavily influenced by how successfully the service provider manages the team’s personnel resources, infrastructure, and working environment. Here’s why Treinetic should be your first choice:

Based on the client’s requirements, we have devised a system for collecting information and putting together a dedicated team. With a project management team and a business analyst in regular contact with the customer, we ensure that the development process is transparent and problem-free.

We can quickly expand our devoted workforce in response to a client’s requirements.

Some final words

In addition to supporting clients in different time zones, Treinetic has been a remote-friendly organization for many years. Regardless of the epidemiological situation, we are completely prepared to operate online and get things started as soon as possible. All of our human resource administration is done remotely. And this allows us to maintain a strong connection with our customers while also delivering products on time.

How to Grow Your Startup

How to Expand Your Startup | The Complete Guide

You should have an idea of “how to expand your startup” in mind even before you invest your money in any kind of business. It may be thrilling and puzzling at the same time to take the risk of starting a business. Around 90% of startups don’t work out at all in many ways. This may seem to be a frightening figure, but the fact is that your new business may avoid being a part of this statistic by following a set of growth-oriented guidelines.

You can make your startup successful and maintain its viability if you follow the appropriate procedures. Keep reading for startup advice that can help your business thrive.

How to Expand Your Startup: Expert Tips

1. Ensure that your operating model is stable

Operating models are visual representations of how a company is organized and executes its daily operations. In this case, it’s your startup business. Everything is included, from how the business sources its products to how it structures its business areas and departments. An operating model acts as a roadmap for putting your plan into action. 

A stable operating model is critical to the long-term success of any business, regardless of its scale and status. Therefore, stabilizing your operating model is one of the most important things to keep in mind when discussing the topic “how to expand your startup.” Before expanding your business, you should first ensure that your operational model is stable.  

Business Operating Model
A Stable Business Operating Model Is Essential for Startup Expansion

2. Develop a Startup Growth Plan

Starting a business is more likely to fail than succeed. Therefore, you’ll need to build effective startup growth plans if you want to put your business on a path to success in the future. Combining your target market, value proposition, and goals will result in comprehensive strategies that are easy to understand and follow. Moreover, they integrate your content marketing approach with your social media marketing plan. 

3. How to expand your startup: Throw Fuel on Your Biggest Fire

The desire to be engaged in every conceivable initiative is common among small-business entrepreneurs. However, as a consequence of this, these owners are overburdened. Instead, focus more on developing one or two items or services that your clients would really like. Once you’ve identified your niche, the only thing left to do is expand it. And now it’s the right time to throw fuel on that fire.

4. Put the needs of the customer first

When finding answers to “how to expand your startup,” your customer is the star of the show. Pay attention to Amazon, the most customer-centric firm in the world. “Customer obsession” is the company’s core value. This is a terrific deal for any business owner willing to expand their operations. 

What impact do you think this will have on your customers? Is it going to alienate those who are already on board? What is the likelihood that it will improve their experience with you, your products and/or services, or your brand? Evaluate all of your growth plans in light of your customer’s preferences.

How to Expand Startup - Customer Focus
Focus on Your Customer First When Expanding Your Startup

5. Come up with innovative ways to lower your customers’ risk

Following your successful identification of those who are most in need of your service, the next step is to come up with innovative ways for them to enjoy your service. Consider innovative approaches to lowering the risk for your prospects while still earning a profit for the value you provide them with. In order to decrease sales and service risk, consider the following measures:

  • When it comes to customer relationships, always have backup support.
  • Create a culture of service among your employees.
  • Employ the right people and provide them with the necessary training.
  • Continuous and never-ending improvement is necessary.

6. Manage your energy instead of your time

Instead of stressing about your timetable, investigate how to cultivate more energy. Schwartz and McCarthy’s Harvard Business Review article, titled “Manage Your Energy, Not Your Time,” argues that energy is a more flexible resource than time and that time is a limited resource. Therefore, effective energy management is the fundamental key to improved productivity. Take a few short breaks, say thank you, and try not to be interrupted. When you manage your energy, you will not get exhausted by over-thinking the fact of “how to expand your startup.”

7. Recognize your own personal motivations for expanding your business

The notion is that to be successful, startup owners must broaden their operations. Take a look at that notion and see where it leads. And this is due to the fact that sometimes the most effective course of action is to increase efficiency. Establish your priorities for expanding your business and be certain that they are consistent with your mission and financial objectives. We have learned that being larger does not always equate to being better or more lucrative. Consider your options carefully before choosing to expand.

8. Strive to Increase Profitability

Working toward profitability is the ultimate goal of discussing the hot topic of “how to expand your startup.” Be profitable in what you do, whether you are a $100,000, $500,000, or $5 million business. Then, when you’re focused and making money, you can give to charity, start spin-off businesses with new ideas, or give to your employees. Or even pay for expenses related to looking into new approaches, people, or technologies. Begin by ensuring that your business is profitable. It will be beneficial in terms of investment.

Maintaining standards high while pushing for more profits is critical in this context. A business can’t grow if it’s willing to compromise on quality to earn more profit. To succeed, you must improve the quality of your products and services while also increasing profits.

How to Expand Startup - Increasing Profitability
Strive to Increase Profitability While Maintaining High Standards

9. Consider yourself an investor

Ask yourself the same questions an investor would: How unique is your service on a scale of 1 to 10? Do you have a clear-cut advantage? What advantages do you have over your current rivals, such as economies of scale, proprietary expertise, or brand equity? What are the trade-offs when deciding whether to grow now or in a year? When achieving your desired returns, what are the largest operational, financial, and human capital risks to consider? You must find answers to these critical questions and evaluate them to expand the business.

10. Consider how your expansion plan will fit into your current business model before making a decision

When it comes to small firms wanting to grow, experts always ask them to consider one important question: how simple would it be to incorporate the expansion concept into their current operations? As a small business with limited resources, if your growth plan can’t be readily incorporated into what you’re currently doing, it will drain needed resources and put your business in danger of collapse. The greater the ease with which the integration is accomplished, the greater the likelihood of success.

11. Never wait for the “ideal time” to consider “what you should do next” to expand your startup

It will take us forever to develop if we wait until we’re ready and everything is perfectly aligned. To get ready, do the work to make sure you have the right people, processes, and systems in place. Make sure you aren’t holding yourself back from that mythical place where all the stars are lined up. Taking imperfect actions and getting butterflies in the stomach are all part of the joy of running a company. But one must be careful at the same time. 

Wrapping Up

From the idea of developing a startup to expanding it to a multinational organization, entrepreneurs always discuss the topic of “how to expand your startup.” Every successful business or organization began with a humble beginning, and we are no exception to this. Even though we are now a multi-award-winning software engineering firm, we too had a modest beginning.

Put your faith in yourself. All of the advice in the world will not be able to replace your well-honed instincts and judgment. This is the beginning of your new company. These are the visions you have. In addition, there may be moments when possibilities present themselves to you that are incompatible with your goals and expectations. With strategic planning, scalable processes, and a strong bottom line, you’ll be in a better position to listen to your instincts and take that leap of faith in a manner that seems safe and rational rather than risky and reckless.

Startup VS Small Business

Startup VS Small Business | What Is the Difference?

The question of startup VS small business has raised many questions among small business owners and entrepreneurs who are just starting out. It’s likely that if you’ve worked in or are familiar with technology, you’ve met entrepreneurs who are continuously starting and growing new businesses. So, have you ever sat down and thought about what a startup is in its most basic form? Is it merely a catchy term for a business that is growing at a rapid pace? Or maybe there’s an actual difference between a startup and a small business, depending on how it’s classified.

Startups and innovative small businesses are like children and dwarfs. It’s a small or medium-sized company, and both of them fit that description. This is the point at which their similarity ends. It will be interesting to see how small and startup businesses differ.

Startup VS Small Business: What are the Real Differences?

Let’s understand the two business types better before reviewing their differences. 

What exactly is a startup?

To begin, let’s take a deeper look at what it means to be a startup company. Even though there are several ways to describe a startup, most people stick with the definition proposed by Silicon Valley entrepreneur Steve Blank in 2010: “A startup is an organized form to search for a repeatable and scalable business model.”

Not only is a startup looking to identify and execute its business model, but they’re also aiming to do so on time. And they do it in a way that substantially influences or disrupts the current market.

Startup Business Characteristics
Common Characteristics of Startup Businesses

What is the definition of “small business”?

Understanding the definition of a small business is essential to comprehending the difference between a startup VS small business. An ASQ definition of a small business is one that has fewer employees and lower yearly income than either a corporation or a regular-sized firm, whether it is a partnership or a sole proprietorship controlled by the owner(s). Countries and industries have different definitions of “small,” which affects whether or not a business may ask for government assistance or qualify for special tax status.

Even though small firms may typically apply the same quality management systems as bigger organizations, they may encounter a variety of unique hurdles along the way. On the other hand, small firms often lack the human capital and up-front financial resources necessary to invest in high-quality projects. Higher levels of upper-level dedication and accessibility, on the other hand, may be found in smaller companies, and internal communication can be more clear.

Differences Between Startup VS Small Business

So, now you know what a startup is and what a small business is. Let’s understand the differences between startups VS small businesses in detail now.

1. The urge to grow

In terms of growth intent, one of the most significant distinctions between a startup VS small business is the scale at which you do business. As previously said, startup founders are trying to have a huge effect and disrupt the current industry with their business ideas. And this means they are not looking to keep a small, limited staff indefinitely.

As a result, they are attempting to expand rapidly. According to what you may expect, this is one of the reasons why so many companies are created in the technology industry. Why? Because technology has a broad reach, is readily scaled, and can be financed rapidly.

The US Small Business Administration (SBA) says that a small business is a “for-profit business of any legal structure, independently owned and operated, not nationally dominant in its field.” This is different from the concept of a startup. According to this statement, the growth aim of a startup is vastly different from the growth intent of the majority of small businesses in the world. However, unlike startups, which are founded for development, a small business is not always in this position.

2. Startup VS Small Business Funding

Is this one of the most significant differences between a startup VS small business? Indeed, yes. In general, it’s going to be harder to get funding for startups and small businesses than for bigger businesses. On the other hand, startups are much more likely to use and succeed with equity financing than small businesses.

Equity financing allows startups to find angel investors or venture capitalists ready to provide huge sums of cash in return for a portion of the company’s equity or ownership. Most of the time, these investors provide small amounts of funds in “rounds.” And then, with each round of financing, the startup must give up stock in the company in exchange for the capital.

Because of this, the company may reach a point where it will no longer exist as an independent legal entity as it continues to raise money. Although equity financing enables the founders to diversify their ownership of the firm, it also allows them to obtain substantial sums of funds while earning the mentoring and direction of the investors.

Funding Options for Startups
Funding Options for Startups

On the other hand, equity finance is simply not a viable option for the majority of small firms. The majority of small business owners do not want to hand over control of their businesses. And the majority of angel investors and venture capitalists are only keen on working with companies with tremendous growth potential that are disrupting their respective sectors.

Instead, small business owners often rely on various types of debt financing to support their operations. And these may include loans, lines of credit, asset-based financing, and so on.

3. Business objectives

The goals and objectives of a startup are intrinsically tied to its intention to expand. An aspiring startup entrepreneur wants to disrupt the industry with their scalable and effective business model, develop as rapidly as possible, win the competition, and so on.

On the other hand, the same is not always true for a small company owner. Instead of disrupting the industry or breaking into an entirely new market, all you need to start a small business is the desire to do so and an intended audience that you can successfully target. It is possible to operate a profitable small business while generating an income as long as you can manage your time well.

You can see how growth and company objectives are interwoven here. Startups seek to expand to have a greater chance of disrupting the market. However, small businesses are established for the goal of entrepreneurship and servicing a specific geographic area rather than with the aim of expansion on a wide scale.

4. Startup VS Small Business End goals

The final objectives of a startup VS small business are fundamentally different from one another. Almost certainly, when you establish a small company, you want to keep it going for a long time—at least until you finally pass it on to a family member or sell it to an interested buyer when you retire. Your primary priority should be to keep operating your business up to that point. However, when it comes to starting a business, this is not the case.

Founded to find a repeatable and scalable business strategy, startups are temporary entities. The company may need to alter business models many times before finding the perfect one. But once it does, the organization’s primary focus switches to putting that model into action and growing the business. At that moment, the entity no longer qualifies as a startup but rather legally, a company.

5. The level of risk

There is always some element of risk present when planning to launch a new business. However, there is an additional element of risk involved with a startup compared to a small business when putting them side by side.

Creating a product or service that has the potential to disrupt or have a substantial influence on the market is, as we’ve explored extensively, the driving concept behind a startup. By going through the process of researching, raising money, testing the product or service, and so on, you are putting your confidence in your business. You are placing your faith in your startup’s ability to succeed and make an impact.

The downside is that you’re taking a significant risk and might end up losing your entire life savings if your venture doesn’t work out. Despite the many risks connected with establishing a small business (and the fact that 20% of them fail within the first year), small businesses have the advantage of entering into an already existing industry. And this results in reduced risks. So, they might be far more manageable than they are for startup entrepreneurs.

Small Businesses Failure Rates
Small Businesses Failure Rates

Treinetic’s Final Thoughts on Startup VS Small Business

As you can see, startups and small businesses are quite different from one another, contrary to what most people believe. So, why is it important that there be a difference? At the end of the day, the distinction between a startup VS small business extends much beyond our common understanding of these terms and phrases. It is even more important for aspiring entrepreneurs in the future. In the process of establishing your own business, it is possible to question yourself: Am I creating a startup or a small business?

When you have an answer to that question, you will be better equipped to define objectives, get financing, and develop a strategy for your company’s future.