Category Archives: Ignition! Starting up

Should you include your sweat equity in a business plan?

Posted on October 15, 2020 by Dave Berkus

Investors love it when entrepreneurs draw little or no money from their startups. It extends the cash available for research and other necessary fixed costs and gives the fragile, young company more “runway” to get to breakeven. What are you … Continue reading →

What’s the most important thing in a young business?

Posted on October 1, 2020 by Dave Berkus

Cash is everything to a new business. How many times do we have to say this? The days of being able to trust that there will be an investor or lender on the other end of a call or email … Continue reading →

Posted in Growth!, Ignition! Starting up | 1 Comment

So, do you have that entrepreneurial DNA?

Posted on September 24, 2020 by Dave Berkus

My immediate family members were entrepreneurs from as far back as I can trace. Dad was a jeweler, then a furniture store owner. Mom wrote books and articles from her college days until she could no longer see the keyboard. … Continue reading →

Posted in Ignition! Starting up | 2 Comments

Here’s how NOT to define your competition

Posted on April 11, 2019 by Dave Berkus

We investors see this all the time. An entrepreneur pitches using a deck with no slide for competition. When asked (as we always do,) the response is “This is new. We have no competition.” Niet! No! Unh unh. Professional investors … Continue reading →

Posted in Finding your ideal niche, Ignition! Starting up, Positioning, Raising money | 1 Comment

Could you have created a “dirty cap table?”

Posted on March 7, 2019 by Dave Berkus

Oh, I know. When you started the business, you took investments from friends and family in small amounts just to get you started. Of course, that worked at the time. But… Enter the need for larger investments When you seek … Continue reading →

Posted in Ignition! Starting up, Raising money | 3 Comments

Would you sign a personal guarantee if you have investors?

Posted on February 28, 2019 by Dave Berkus

It’s a fact of life that a banker, lender or lessor will ask for a personal guarantee from the founder or entrepreneur most every time. But what if you’ve diluted your interest from 100% to something less than 50%? Should … Continue reading →

Posted in Ignition! Starting up, Protecting the business, Raising money | 2 Comments

Oh, go ahead and ask for a five-million-dollar investment in your startup.

Posted on February 21, 2019 by Dave Berkus

I cannot tell you how many times I have seen executive summaries of business plans in which the entrepreneur seeks $5,000,000 to build the business. Four reasons you should reconsider. First, few startups can use that much money today with … Continue reading →

Posted in Ignition! Starting up, Raising money | 7 Comments

Once again: Is it the jockey or the horse?

Posted on February 14, 2019 by Dave Berkus

Early stage investors have been arguing over this for years. Do they bet on the entrepreneur (jockey) or the business idea and plan (the horse)? This is serious stuff. If you are looking for money, this question will certainly come … Continue reading →

Posted in Depending upon others, Ignition! Starting up, Surrounding yourself with talent | 4 Comments

What would you do if told to “fail fast?”

Posted on January 17, 2019 by Dave Berkus

Here’s a question that should strike close to home. Professional investors like to quote this mantra to anyone who will listen. “Fail fast,” they say. But what if you believe so strongly in your budding enterprise that this seems to … Continue reading →

Posted in Finding your ideal niche, Ignition! Starting up, Protecting the business | 4 Comments

Risk, insanity, and the 50% startup rule

Posted on December 27, 2018 by Dave Berkus

Fifty percent of all businesses formed fail within the first two years. There are many variations of this number since there are a number of ways to measure failure. But the number is a startling reminder that creating a business … Continue reading →