3 More Months of Runway? You Must Freak Out!
Investors don’t give a shit about the potential, they want to see 3x YoY growth.
I bet you have a solid product and may have some users but not much revenue.
Many users are using the product for free.
Some may pay, but not necessarily the actual value of the product.
Just bare minimum.
You may think I need to cut more costs.
All costs are cut except the salaries.
What else I can do?
You consider myself a mentally strong person, but this is next-level shit.
Now, what’s the solution?
I always say, the only thing impossible, is impossible.
Everything else has a solution.
My father always used to say, there are infinite numbers between 0 to 1.
So, let’s explore.
First of all, get a mindset coach.
Does not have to be Tony Robbins. But there are plenty of QUALIFIED coaches out there that can calm you down.
The key is not to freak out . . . but you need to be on edge anyway.
Second of all, share your stories with some other founders that were in your shoes before and get some hardcore advice.
Plan a few tangible steps on how to improve.
Do not daydream!
Think about what tactics you can use to generate some money.
And this is what you really need to focus on.
Let’s be transparent.
Small wins are not going to help.
A couple of thousands is not going to save you.
Depending on how many people you have, you need to be able to keep them for at least another 9 months and be able to spend some money on growth projects.
Keeping things the same way, is not a good idea, as in 9 months you may end up in the same situation again.
Now, who is your team, and how much do you pay in salaries?
Are they all founding team?
Can you slash the salaries in half?
But this gives you another extra 3 months to go.
Ask your employees (if not the founding team) if they can do that, you will be able to get them the money later plus a bit more equity.
However, the main strategy you must follow is to get your customers pay more.
Find ways you can do consulting for your customers.
Anything that is remotely related to your core business, can become consulting work.
In B2B space, this is GOLD.
This way, you can cash up large sums of money in a short period of time and get yourself to 9 to 12 months.
Feel free to share this blog with fellow startups that are in the same situation.
May the force be with you!
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On the other side, there are so many startups looking to raise capital and it becomes very hard to get investors’ attention.
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