Why do most startups fail?
First-time founders often lack the experience required to navigate the path to building successful businesses.
This causes them to skip steps or run into issues that experienced founders can avoid or overcome.
Many startups focus too much on building their product that they end up creating something that no one wants.
This causes them to spend a lot of time and money, only to realize the lack of demand afterward.
Many new ventures struggle from not having access to the right amount of capital at the right time.
This causes new startups to either not have enough funds to operate or overspend as they advance.
Many new founders either try to go at it alone or bring on the wrong initial set of team members.
This can cause the founder to get overwhelmed or slow progress due to poor team cohesion.
Many startups focus on growth without defining a business model that will be sustainable.
This causes them to be reliant on investors to continue operating, rather than becoming self-reliant.
Most founders only do business plans and pitch decks because it’s what they have been told they need to go out and raise money but the proper planning is an essential piece that most overlook.
But it doesn’t have to be this way!
Introducing… The Lights on Lab Startup Platform
Step 1 in our process is our Idea Validation process.
This process is mandatory to qualify to pitch for our Factory and Accelerator programs! If you do not go through this program we will not accept your application!
Yes, there is a cost for this program but we do have two options to choose from, we will do it for you or you can do it on your own. The “done for you option” costs $5,000 and takes 2 weeks or less to complete. You can check out all of the information about the done for you “Before you Begin” idea validation program here
Please inquire for the “do it on your own” option pricing and terms.
PLANNING & BUDGETING
If your idea has passed the validation stage then you now qualify to pitch for our Factory and Accelerator programs. If you are accepted into either we will then proceed with the planning and budgeting phases of startup creation. At this point we need to figure out how much money is needed for a 2 year runway, who do we need to hire, what vendors do we need hire, what is our go to market strategy, we need a business plan and we also will need a pitch deck.
LAUNCH & SCALE
We have now gone through our planning & budgeting phase and it’s time to raise that initial “pre-seed/family and friends” round of capital (if needed) to finance the launch portion of our process. Our goal for the first 12 months is to hit our milestones of $100,000 in revenue and gain enough traction to prove out all of our processes, making sure we have the right team in place and are ready to raise a true Seed round of funding (if needed).
“Before everything else, getting ready is the secret of success.”
– Henry Ford –
Founder to Fit Accelerator Program
The Founder to Fit Accelerator program provides you with a proven process for achieving product market fit with access to the best coaches, advisors and mentors to help you through the early stages of this process to hit milestone #1 which is a validated idea, a proven plan to go to market and hitting some early stage traction to prepare for a formal launch and to go raise capital for growth.
This is ongoing process with no formal timelines so if it takes 6 months then so be it but it may take 2 years depending on the time commitment of the founders.
Not all who apply will qualify but for those who do we want to disclose that this is a paid for program! We ask for $30,000 plus up to 6% common shares of equity with a 2 year vesting period. The fee is not due upfront and we do have options for repayment including rev share, the option to buy additional equity (this is the most common method) plus the option to to be repaid upon funding. Our fees are non-negotiable!
***BE ADVISED, THERE IS NO FUNDING AVAILABLE FOR THIS PROCESS AS WE ARE NOT INVESTORS. IF YOU ARE LOOKING FOR AN ACCELERATOR PROGRAM THAT PROVIDES FUNDING THEN WE ARE NOT GOING TO BE A GOOD FIT FOR YOU.***
***To qualify for the Accelerator program you MUST go through our Idea Validation Process and meet our minimum criteria of at least 200 potential users/customers surveyed with a minimum of 85% positive feedback on the want/need of the product or service, the basic business model and the core features of the product or service.***
To paraphrase Steve Jobs, “I’m always amazed how overnight successes take a helluva long time.”
– Verne Harnish –
Founder to Five Startup Factory Program
This is our flagship offering which is designed for those founders who don’t want to go play full time Entrepreneur but they have a great idea for a business that they want to see come to fruition.
Founders utilize this program because they want to be business owners and not business operators, just like those who purchase franchises aren’t always the ones who run the day to day operations.
This is also a great program for Investors who may be working with a young startup who just isn’t making it happen and needs formal help to kick things into gear while they work on training their founders to operate a company instead of launching one.
The bottom line is, we’ll go do it for you!
This is a true startup as a service program where we will go through our Founder to Fit processes including:
- We start with the basics of validating the idea
- Finding product market fit
- Branding, website development, app development, product development and design services
- Building a team of capable operators
- Raising Capital
- Testing and tweaking the business model as needed pre-launch
- Launching and then scaling the business with the goal of getting to a $5 million dollar valuation within 3 years
- We typically exit our ownership position at this point via an exit or an add on round of funding
- We can hand back over the reigns to the founders or we can keep the existing team in place
- Upon the founders request we can stay on board as formal advisors holding a board seat with voting rights. This will come with a commensurate salary and stock option package to be determined at that time
- FOUNDERS MAY OR MAY NOT HAVE A JOB IN THEIR COMPANY! Everyone who is seeking a position in this company has to apply including the founder/s
- The Lights on Lab will control the process, the team, the money and has 100% control at all times
We take an equity stake of no less than 40% but no more than 65% in the company to facilitate this process plus a contracting fee of $50,000 which can be repaid at a future date just like the accelerator program above. Depending on how much the founders want to be involved will determine additional equity ownership. Our fees are all non-negotiable!
Check out our new Factory BETA website here for more information
***To qualify for the Startup Factory program you MUST go through our Idea Validation Process and meet our minimum criteria of at least 200 potential users/customers surveyed with a minimum of 85% positive feedback on the want/need of the product or service, the basic business model and the core features of the product or service.***
Every Entrepreneur or Startup needs access to great mentors, coaches, consultants to help them along their startup journey in the early stages. We provide online access to these professionals via our Slack Group which costs $69/month.
We have mastermind programs which will run 1 hour with a panel of at least 3 professionals which costs $450.
If you need a formal Advisory Board member we do offer equity ownership options as well as fee options for this service, please inquire.
We have raised millions of dollars for many of our own projects as well as for other startups so we now offer a consulting service for those who need help with raising capital the right way. Be advised, this is not a performance based service so plan to have a budget of at least 10% of the amount you wish to raise for legal, marketing and staff to facilitate a proper raise.
We charge $500 per month with a $3,500 retainer due upfront with a 6 month commitment.
The typical capital raise timeframe is 6 months but can be more or less.
Contact The Lights on Lab