Scott D. Levine | [email protected] | Bio
When it comes to writing a business plan or putting together a document that would demonstrate to investors that you have thought through the critical parts of starting a new company, the focus is going to be on the business itself.
When you write about the business you should be answering the question: How compelling is the service or product? An investor cares if the product is compelling. It can be an interesting idea, but if it’s not compelling it’s not going to attract capital, customers, or talented employees.
With respect to your company, have you differentiated yourself from others? Do you have a unique value proposition? Do you have competitive advantages? You don’t have to have a 50 page document explaining all of this, but you must demonstrate that you’ve thought through your business value and you can answer succinctly what your differentiator is. Have identified the right minimum viable product?
What investors care about is validation. The term “go ugly early” means to get the product out there, tell us what the market is telling you. It doesn’t have to be perfect. No matter your experience level, get something out there that validates your business idea. The technology can always be improved and should be improved.
Last, have a 3rd party validate your business idea. Who besides you says this is a good idea? This is critically important to investors when describing your business. Show the value is more than in your head.
