In continuation of yesterday’s spark –

I had a very interesting conversation with someone I’ll call Tom yesterday. Tom is a good friend of mine who last year started his own business. Quite soon in the conversation he mentioned how much more easy life would be if only he would get some seed funding.

A comment I have heard oftentimes including in the discussion forum of our matchmaking  program…

Don’t get me wrong, I would love for Tom and any other starting entrepreneur to get funded, but I’m afraid for many it would not solve their issues.

When I poked Tom, it became apparent there is quite a bit of work to be done understanding first why his potential customers are not buying in the masses he was expecting – like clarifying his ideal customer; the value he brings vis-a-vis competitor solutions; the way how he has put his solution in the market; his communication meant to entice potential customers to take up his solution; I would even be interested to cross-check the profitability of his business model…

SPARK OF THE DAY

Money may seem the answer to many problems, but take it from me that it often is used as a cover up to avoid having to go deep uncovering the real issues.

If your business leaks cash, it will continue to leak but now exponentially if you get additional money. These are the stories you’ll hardly ever hear about in the news – who would want to share they messed up after getting funded… (hint: remember the universally known statistic that 90% of startups fail?)

If you’re one of these entrepreneurs who believe that (seed) funding will save the day: think deeper,  uncover your iceberg first!