So you've been working 20 hours a day for months on your new business, have spent your last dollar and still have few results to show. Investors---not to mention your exhausted team---are bound to think that your dream vehicle doesn't have wheels, right?
Don't despair. Investors (the good ones, anyway) are smarter than that.
Here are 10 signs of tangible progress they look for---and that will keep you going the extra miles until your new venture really gains traction.
A Documented Business Plan
It's hard to build a business without a plan, just like it's hard to build a house without a blueprint. If don't have a plan, get to work--or risk not raising a cent. For help, check out
Realistic Objectives and Milestones
You can't measure results if you don't have a yardstick. On the other hand, if your objectives are off the chart, you'll look bad when you set them, and even worse when you miss them. Note: Only written milestones are credible.
A Well-Rounded Team
A great business often starts with one person, but it doesn't end there. Assemble a balanced crop of lieutenants who have real experience. A team of friends and family that work for free on weekends is not likely to impress investors---unless they are your investors.
A Qualified Advisory Board
If you can convince a couple of industry experts or experienced executives to join
your A Working Prototype
Savvy entrepreneurs know that product development never stops. That said, the earlier you can test something--anything--in the market, the better. Define the absolute minimum features you need to satisfy a customer's problem and move some product. It will be the wrong product, but you will learn something with each iteration. That's progress.
