You have a startup idea – now what? Start with a Value Proposition canvas!

You have an idea – how do you get started? In this video I walk through the 9 steps I suggest an entrepreneur tackle to first evaluate and then pursue a startup idea:
1. Capture your Value Proposition in a Value Proposition Canvas
2. Test those value proposition hypotheses with customer interviews (customer discovery).
3. Capture the rest of your business model hypotheses in a business model canvas, and get out and test your business model hypotheses to convince yourself that this can be a profitable business.
4. Research the competition
5. Create a legal entity so you have a place that can own the company’s intellectual property, hold the company’s finances, and provide some liability protection.
6. Protect your company’s intellectual property with intellectual property assignment agreements and with trademarks, copyrights, trade secrets and patents.
7 Build a team
8. Develop your milestones and a funding plan consisting of a sequence of milestones, a source of funding for each milestone, and a funding instrument for each milestone (typically a convertible note, SAFE (Simple Agreement for Future Equity, priced round, crowdfunding, or grant such as an SBIR or STTR).
9. Fund and execute your milestones
– Size the funding round needed for the current milestone with a bottoms-up cash flow analysis
– Select a source of funding and an SEC exemption
– Choose a funding instrument (convertible note, SAFE, etc.)
– Develop you offer (e.g., discount, valuation cap, etc.)
– Assess feasibility of your funding approach; adjust if needed
– Develop your pitch pack including the pitch deck (see the
playlist on the investor pitch)
– Have your attorney develop the required legal docs
– Start networking and pitching
– You’ll do a series of trial close to “soft circle” investments
– Be prepared for due diligence
– You may need to use an escrow account
– Get that first close!
– Complete your SEC exemption filing, if required
– Finish the round
– Use the funds to complete the milestone
– Repeat all that for the next milestone