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 Factory
Maybe you were born to become an entrepreneur, or maybe you just came across a problem that needs solving.
Either way, you start with an idea but you still need validate your idea.
We created the factory to partner with founders who have great ideas but need a process and a plan to validate and launch their new ideas.
We fill in those gaps as needed to co-build and launch ideas!
With the initial idea vetted, now comes the search for traction. Just like in racing, when the “rubber meets the road”, it takes some time to achieve traction so that the car moves forward.
The next section of the factory works by taking the idea and running it through a series of processes to gain traction with capable people and capital behind them.
With traction achieved, it’s now time to grow the business.
We will now put in place a formal operations team, additional capital if needed and a growth plan for the team to execute with the goal of hitting a $5 million dollar valuation milestone by year 3.
“Before everything else, getting ready is the secret of success.”
– Henry Ford –
Founder to Fit
The majority of new startups fail because they build a product that no one wants. In addition, most new founders spend too much time and money to build these products only to fail when they can’t find enough customers to purchase them.
It doesn’t have to be this way.
The Founder to Fit program provides you with a proven process for achieving product market fit with the goal of taking you from idea to $100k in revenue within 12 months, a goal of at least 200 paying customers and at least 85% positive feedback on the core features of your product or service.
Some ideas will work, some will pivot and some will just be scrapped so our mission is to help filter you through this process all the while filling in any gaps in resources that are needed.
For our assistance with this program we take up to 4% equity plus a back end fee which is to be repaid via rev share for our time and resources.
To paraphrase Steve Jobs, “I’m always amazed how overnight successes take a helluva long time.”
– Verne Harnish –
Founder to Five
Achieving Product/Market fit is only one piece of the journey. The next step is scaling, which brings with it new territory and a host of other challenges. For those who make it through our Founder to Fit program or meet our minimum criteria for traction for those of you who have an existing company, product or service, this program is more of a mix of a M&A transaction where we take operational control of the company and take point on raising capital, operations and leadership to grow fast.
Growth requires capital. It requires building a team and establishing systems to…
- Generate increased demand (sales and marketing)
- Create and deliver your product (operations)
- Manage cash flow and profitability (finance)
This is often unchartered territory for new founders as now the “honeymoon” phase is over and it’s time to go from startup creation mode and into a more formal operations mode which is where about 80% of most businesses fail. We created this program to bridge the gap between product/market fit up to an A round of formal funding.
Most startups at this stage haven’t had any sort of formal funding rounds except for maybe family and friends and possibly a few silent investors so our mission is to get the company funded and grow to hit a $5 million dollar valuation within 3 years and then we usually liquidate our position.
We take a minimum of 20% equity in the company as well as points on any funds that we raise either internally from our fund or from our external venture partners.
This program is not for everyone as we know that giving up control of your company for the interim is a very hard thing to do but if you have plateaued or just can’t grow anymore with the way things are now, this may be a great option for you!
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 3% of the amount you wish to raise for legal, marketing and staff to facilitate a proper raise.
For short term or gig style engagements we provide consulting services which cover every aspect of the startup process.
If you need help with sales, strategy, marketing, advertising, operations…we have you covered.
Contact The Lights on Lab