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73.6% of all Statistics are Made Up

Both Sides of the Table

Often when they do I throw out my favorite statistic: 73.6% of all statistics are made up. Here’s how I learned my lesson: I started my life as a consultant. Fortunately I was mostly a technology consultant, which meant that I coded computers, designed databases and planned system integration projects.

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6 Strategies For Startup Exit That Investors Accept

Startup Professionals Musings

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Startups with no exit planned will minimize investor returns. Most entrepreneurs like the startup role, but not the big-company role. Yet one of the first things a potential equity investor asks about is your exit strategy.

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6 New Venture Realities To Target Your Funding Effort

Startup Professionals Musings

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). Thus investing in startups should always be approached as a low odds game.

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The Resetting of the Startup Industry

Both Sides of the Table

Much has changed in the past four months of the technology startup world and how outsiders value the business. That’s economics (or statistics) for asking whether price ratios of how investors value companies was simply coming back to historical norms. Start early. It applies to all startups – not just SaaS.

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10 Quotes You Should Never Use Around A Business Plan

Startup Professionals Musings

They also look for entrepreneurs they know from past experience and warm introductions, or for evidence that you have previously built a successful startup, and sold your last one for maybe $800 million. Every pitch should start with a concise statement of the problem and your innovative solution.

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6 New Venture Ending Alternatives You May Contemplate

Startup Professionals Musings

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Startups with no exit planned will minimize investor returns. Most entrepreneurs like the startup role, but not the big-company role. Yet one of the first things a potential equity investor asks about is your exit strategy.

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10 Metrics To Drive Your Annual Business Review

Startup Professionals Musings

As the end of the year approaches, it’s a good time for every startup to assess the metrics, technology, and platforms they’re using to manage the business. Of course, everyone is happy when the numbers keep going up, but the data needs to be mined constantly for deeper meanings and trends. Customer loyalty and retention.

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