Pivot to Profitability is a framework designed for startups, whether you’re bootstrapping your company or stuck between fundraising rounds with weakening metrics and accelerating cash burn.
There are four parts to the Pivot to Profitability methodology.
Assess: How do you know if you’re off track if you don’t have a map? To properly assess your performance against your goals, you need to define your KPI’s, build your cash forecast, and connect the concept of Innovation Accounting to your financial plan to rapidly iterate your way to profitable growth.
Top Posts: Assess
- Why You Must Set Goals For Your Startup
- What are SMART Goals
- What Are KPIs (Key Performance Indicators)
- Finding Product-Market Fit: Desirable, Feasible, and Viable
- How Would Socrates Review That Customer Acquisition Model?
- Build a Proper Revenue Model
- Gross Margin Is Sexy Again
- Gross Revenue is a Vanity Metric
Action: When metrics aren’t meeting your expectations and cash burn is accelerating, you need to take Action before it’s too late. You must identify the parts of your business that aren’t working, make the difficult decisions, address funding gaps, and take care of your employees and your partners.
Top Posts: Action
- The Casper IPO – Investor Leverage, The Hit To Employee Morale and The Tough Road Ahead
- Valuation Makes The Headlines, But Liquidation Preferences Allocate The Cash
- The Sunk Cost Fallacy – The Roadblock to Meaningful Change
- It’s The 60% In The Middle That Will Kill Your Company
- Making The Best Decisions You Can With The Best Data You Have
- Spaghetti Against The Wall Leaves A Terrible Mess
Advise: Once the tough decisions have been made and acted upon, you need to Communicate with your Employees, Board and Investors to earn their support for the changes you’ve made, and keep them excited about your company’s ongoing opportunity for future growth and success.
Top Posts: Advise
- How Do You Deal With A Request For Secondary From An Existing Investor
- Are You Still Aligned With Your Investors?
Self-Care: The most important aspect of navigating a startup through difficult times, and the topic least discussed, is Self-Care and Founder Mental Health. Being a Founder can be an incredibly lonely journey, with all of the hopes, dreams, and expectations of your Employees, Investors, Family, and Friends falling on your shoulders. You need to develop a toolkit to help you care for yourself and navigate the difficult path you’ve chosen.
Top Posts: Self-Care
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