Credibility, Ubiquity and Big Kahuna.
Week 8 of LLP is bringing us to the end of our 2015 summer LLP@TTU. We had a packed week and I will share a few observations of this week. Two great speakers this week. Ravi Venkat shared his online tools to generate financial statements to guide you in early financial decisions for your company (ivarface.com/bizplan/bal) as well as a number of hands-on metrics for early company: for a small company you need at least $125k in sales per employee (e.g., a small company with executive, a few technical and a few manufacturing personnel would require minimum sales $1 million or more), early large sales and cash flow can be a large challenge for new companies, and smaller companies will sell for about 6–8 x EBITA on average, but this number can be much larger for breakthrough technology companies. Steve Glovsky shared a number of experiences in taking technology ideas to viable businesses (often through acquisition by a big company). What does it take to connect with the large Co. for acquisition or acceptance? You need to generate credibility (think NASA), ubiquity (your company mentioned on the daily traffic report) and big Kahuna (ESPN). Work to get one of these areas to put your product and company in a strong position for acquisition.
Team Thermal finally connected with the CA. state resource agency and found rebate programs and specific groups that are committed to saving water through products such as Thermals. This team has identified between 112k and 500k likely early-evangelists. When compared with their early financial forecasts, this easily meets their 3–5 year sales projections. Team thermal also has a great MVP (minimum viable product) — proof of concept, tangible, hands on, etc. Great job!
7/22/15 — Stephen Canfield