Copyright © 2010, CVMark Consulting, All rights reserved.
Taking funds NOW or LATER
Dr. Shridhar LollaCVMark Consultinglolla@cvmark.com Draft 1.0Mar 2011,Bangalore, INDIA (This caselet belongs to ‘respecting the business’ series of CVMark. It is based on reallife experience at AdON- an advertising space orchestrating firm; and several otherstartup companies ) Key words:
entrepreneur, startups, entrepreneurship, investment, funding, business rules, businessfundamentals, built to last, capacity building, entrepreneurial behavior, first generation entrepreneur,neu-entrepreneurs, value system, culture, focusing behavior
Definition: Prime Rule (
)= Non negotiable rulesPrime Rule #700: In a majority of cases, the building block which would determineperformance of the business may not be finance. And hence, obtaining investment whenthe business does not demand it, will not improve performance of the business. On thecontrary, it has dangerous potential to misdirect the business. This is a sequel to following caselets: 0. The Saga of Startups1. When sales Staff quit, Clients switch over2. Sales is the prime responsibility of entrepreneurs3. Not Succumbing to Pricing Pressure4. Entrepreneur Agrees to do Sales5.Temptation of taking large orders6.Pitching Business Idea within 3 minutes7. Startup Carnival ________________________________________________________________________ Business is a system, comprising a number of interdependent building blocks, whichtogether determine its performance. In an interdependent system, the weakest link determines the performance of the system. Depending upon stage of each business, oneof these blocks could constrain (and therefore determine) its progress. It, thereforebehooves on the entrepreneur to focus on the weakest link at any time. However, our experience of working with startups as well as early stage businessesshows a dangerous trend. Irrespective of the state of the business, a vast majority of