Fundraising: Plan B

| October 12, 2008 | Reply

Guy Kawasaki has an excellent post on Plan B: Another way to grow your company. Over the past few years, I've seen so many companies with stars in their eyes. I know what it looks like – I've been there myself. Somehow, the idea of a big round of venture funding solidfies their existence and proves that their concept is destined to be the next big hit.

It's very similar to getting signed on a major record label.

It is imperitive that the artist is solid and can make unbelievable music with or without the label. The label then ads the firepower to get the the next level. But if the artist is relying on the idea that the label is proof of their superiority, then the artist probably won't get traction.

It's the same with your startup. Struggle and fund it yourself. Fail fast. Understand that your model will change 2-4 times in the first few years. Commit yourself to persevere through the chaos and find a way, no matter what, to understand what the market is willing to pay for. Then, focus on developing a service or product that answers those needs better than others.

Kawasaki's best advice on this article: "Rather than trying to boil the ocean, try to boil a tea kettle." We've found that mantra to be true within TakeLessons. Rather than focusing on the entire world/country, we've targeted specific geographies. Rather than focusing on everything related to lessons, we've focused down on what we do best. This allows us to direct our strategy in the areas that will provide us a true competitive advantage. The truth is that we will never have enough time, money, human capital to do everything we want at all times. So the power of focus has proven to be an invaluable tool.

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Category: Entrepreneur Insights