For the entrepreneur, life is often “just-in-time”. With this in mind, the typical Founder is likely to delay putting together a pitch deck until if or when they decide to go for external funding. I would like to present a contrarian view as to why creating a business pitch is actually one of the things they should be doing, even if they aren’t looking for funding today.
When most people speak about a Startup’s funding approach as “bootstrapping”, they often are referring to the Founders putting some time and capital into the company. This is actually an incorrect use of the term in Startup “speak”, as that Founder input is still an investment. And though it’s usual that Founders put some cash into their companies or minimally defer taking anything out, it’s still actually investment. Just not an external investment. It is a type of Seed Funding.
A key business performance metric for startups to track is the months of available cash in the bank. Whether that cash has come out of the pockets of the founders, borrowings or seed funding doesn’t really matter, a key metric for your regular financial report is how the company is using this money and when the money might run out.
This week I went to a Girls Raising event in Toronto. The group’s premise is: if companies which include female founders are often more successful than less diverse companies, let’s support companies that include women founders, and give them an opportunity to hone their message and receive effective feedback.
When listening to Canadian would-be entrepreneurs, it seems that quite often you hear their dream is to start a company, grow it to the point where some other larger American company comes along and buys it, enabling the original founders to walk away with millions of dollars.