Big Paper Blog

So, I was at an event a few weeks ago, scribbling away on big paper to keep from gouging my eyes out (short attention span). Came up with this “fundability matrix” to visually demonstrate how investors think, and how they tend to classify 4 main types of entrepreneurs.

(By the way, this isn’t the verbiage they would use to describe how they “really” classify them, it’s just my translation).

Before we get started, the following are defined as:

Assets: factors which are on hand as “resources”, which could include funding, network, talent, team members, equipment, opportunity, experience, or anything at the entrepreneur’s disposal to make things happen.

Liabilities: factors which are a “cost” to the project, including debt, weakness, gaps, problems, flaws, limited funds, lack of connections, inexperience, or anything that slows or stops the project overall.

Progress: quantifiable or perceived indicators of past, current, and future ability to maintain forward momentum to the project’s success.

Backsliding: quantifiable or suspected indicators of past, current, or future possibility or probability of tanking the project in utter failure.

***

So, the numbers 1, 2, 3, and 4 are our four main types of entrepreneurs. Two of them are what you want to be– 1 or 2. The other two, 3 & 4, you want to do everything as an entrepreneur to NOT be, and if you are an investor, avoid these types of deals!

Let’s start with the “Unfundable”, Entrepreneurs 3 and 4.

Entrepreneur 3:Unfundable– “Unmotivated/Unmoving”

The basic formula for this entrepreneur is low assets, low progress. This is an entrepreneur who doesn’t have much, and isn’t doing much.

Frankly, this describes 70% of entrepreneurs, if not more. They have an idea, they talk about it, but they’re not out there getting stuff done, and they haven’t got anyone on board.

Investors aren’t babysitters, and there’s not much they can do with this kind of entrepreneur, so it’s a *PASS* every time.

What the entrepreneur needs to change: Stop thinking that if you had more assets, you could start getting things done. Do whatever you can to motivate yourself and increase the project’s progress, and fast.

Entrepreneur 4: Unfundable– “Wasteful/Incompetent”

The formula for this entrepreneur is high assets, low progress. This is the classic funded startup that blows through hundreds of thousands, or millions of dollars, with nothing to show for it.

This is usually a dangerous combination of bad management team (inexperienced, unethical, or wasteful in their spending) who isn’t being held accountable for meeting milestones.

Often, a startup in this situation will think that more money– a bailout of some kind– will fix their problems, but the last thing an investor wants to do is sink more money into a losing cause, and therefore increase their overall loss.

What the entrepreneur needs to change: Freeze spending immediately. Cut any costs you can, and create a budget that is minimized to core expenses only. Measure results and increase them systematically. Change management internally (revise your strategy) or externally (fire management and bring on others who are more competent).

***

And now, for something more pleasant: the fundable types, Entrepreneurs 1 & 2.

Entrepreneur 1: Fundable– Ambitious/Resourceful

The formula for this entrepreneur is low assets, high progress. They don’t have a hell of a lot, but DAMN, are they going somewhere!

You’ve seen these kind of entrepreneurs. They have a limited supply of resources but seem to pull things together, usually out of thin air.

Money is not a problem– not because they have enough, but because they are extremely focused and will keep the project on track, whether they have the funds at their disposal, or not.

Investors love these kinds of entrepreneurs, as long as they have good business assumptions (like knowing what a revenue model is, and bonus points– having one that is working already). It makes sense because this type of entrepreneur will maximize any dollar the investor puts in, and because they show the ability to make things come to fruition, the investor feels confident in their ability to execute the plan to success.

What the entrepreneur needs to maintain: steady progress without burning out. These entrepreneurs work like crazy, and that can’t be maintained over the long haul.

Entrepreneur 2: Fundable– Wise Steward

The formula for this entrepreneur is high assets, high progress. This is either an entrepreneur who has been funded previously by friends & family or personal resources, or is currently funded, and is consistently hitting their milestones.

This entrepreneur is the safest bet for an investor, and consequently, why they are the most fundable, and most pursued, by investors. They are not as “sexy” or “rockstar-ish” as Entrepreneur 1 (this is why they are billed as “Entrepreneur #2″), but the tradeoff is that they are a trusted, safe, “good” investment, in most cases.

What the entrepreneur needs to maintain: just keep the momentum up in pursuing the market opportunity, and continue to make good decisions based on solid business principles.

The Sum-Up

Which entrepreneur are you? It might be painful to do, but I’d encourage you to take a good look at your startup and see what category you fall into, because I guarantee investors and others taking a critical look at you and your business are classifying you into one of these types of entrepreneurs anyway.

Everyone displays characteristics of each “type” at times, but the important thing is the direction you are heading, and the actions you are currently taking.

The nice thing is that most of the time, if you’re screwing something up, you can always *stop* immediately and correct your course of action. And as long as you’re moving the venture toward quantifiable, visible progress, you’re still in the game.

Hate to be so nostalgic/reflective/sappy, but that’s what New Year’s is for. If you’ll indulge me, here’s a quick look back at this past year. (FYI, here was my year-in-review post from 2006.)

January

Wrapped up promotion for The Entrepreneur Story.
Trained a new class of junior analyst interns and wrapped up my involvement at the Eastern Idaho Entrepreneurial Center.
Began consulting startups seeking venture finance, through FundingUniverse.com.

February

Said goodbye to friends in Idaho/Utah and moved to Seattle to experience the NorthWest high tech lifestyle.
Acclimated to the Big City: coffeeshops, pub crawls, high tech web startup events galore, Twitter, etc.
Began participating in the Seattle Tech Startups community.

March

Wrote a 16-module curriculum to teach entrepreneurs how to prepare for fundraising.
Went to coffee with (what seemed like) almost everyone in the high tech startup scene in Seattle.

April

Began traveling to Portland, Oregon on a part-time basis for EPIC Ventures.
Acquired a violin and began playing again.

May

Began meeting with CityTeam homeless shelter.
Went on a 5-week trip through Idaho, Utah, San Francisco, and Portland.
Spoke at the Six Hour Startup Conference– “You Don’t Get $1MM in Revenue or Funding With A Half-Assed Business Plan“.

June

Held a FundingUniverse LivePitch event in Seattle.

July

Took a 7-day “off-grid” (no cell phone, no laptop, no checking email/internet) vacation to Idaho/Montana.
Launched HDB #5, CoffeeWithAnExpert.com
Launched BigPaperBlog.com to replace my old blog at www.CarolynnDuncan.com

August

Began meeting with the “What Do Seattle Startups Need?” group, including organizing the Seattle Startup Wiki.
Went to Gnomedex 2008.

September

Wrapped up involvement with FundingUniverse and EPIC Ventures at the Portland LivePitch event.
Spoke at From Side Project to Startup Conference.
Held a couple of trial “Coffee Clinics” for CoffeeWithAnExpert.
Went to WordCamp Portland.

October

Moderated TiE’s panel on “Raising Money In Tough Economic Times“.
Began partnerships with Divvy.com and Blabylon.com for CoffeeWithAnExpert.

November

Moved to Portland– got arrested on the way down (long story, but it all worked out in the end).
Spoke at Ignite Portland 4.
Held WordIgniteBarCampCampCampCampPaloozaPDX.

December

Took a sabbatical from work.
Began exploring an interest in clean tech and social ventures.
Set up a new media fundraising campaign for CityTeam Portland homeless shelter.

***

Frankly, 2008 was a complex and bittersweet year, both professionally and personally. Some transitions were planned (leaving the Entrepreneur Center; moving to Seattle), but many were unexpected (launching CoffeeWithAnExpert; migrating down to Portland).

This isn’t the venue to discuss specifics, but things fell apart in many ways as the year went on, and I ended the year by taking a sabbatical from intense work projects, in order to focus on restoring life balance and, you could say, “finding my self” again.

I’m happy to say that forward progress is being made, and as a new year begins, I’m looking forward to re-engaging with my work afresh, in a way that keeps life balanced.

But as difficult as this year was, I feel in particular grateful for the support of many friends and communities, for the many brilliant entrepreneurs, geeks, and investors I’ve had the opportunity to interact with, for my social media contacts via LinkedIn, Twitter, my blog, etc.

Taking an entrepreneurial approach to life doesn’t guarantee anything specific, especially as far as fame/fortune are concerned (this video is much more accurate), but it is filled with adventure, which I do love.

As for 2009, I’d like to take a healthy approach to life & work, to finish what I start, and to continue investing my time and efforts in high-growth, high-impact projects & people. If we haven’t connected on LinkedIn yet, feel free to join my network, and let me know what you are up to.

Disclaimer:

Working with the homeless is a cause that I feel passionately about, but each of us has our own opinion about the causes of homelessness and the ways in which society can/should/shouldn’t intervene.

This blogpost may or may not resonate with your core values on the issue, and that is just fine. In any case, if you read this or consider making a donation or spreading the word, please do not do so out of a feeling of obligation or guilt, but, because you care and want to help us take care of our homeless population in Portland.

Thanks in advance–

Carolynn Duncan

The Need

I just received a note from Julie Stephenson, director of the Portland and Seattle homeless shelter, CityTeam Ministries:

“We are in day 10 of Portland’s 2008 snow storm. I hope you are safe at home. Down here at CityTeam’s shelter for the homeless, things have been hard. We have made room for 88 people to sleep here at CityTeam and are serving over 200 meals a day.

“Our shelter has remained open 24 hours a day, seven days a week. It has been really difficult, as we have had to turn people away because we are so full. No one should have to sleep outside in this extreme, cold weather. It is very dangerous.

“According to a recent city report, homelessness in Portland is up 33% over four years ago and many attribute this to the current economic downturn and higher unemployment rates. In the midst of this critical time when we have more people at our door in need of shelter and other services then ever before, we are facing a serious, financial shortfall of $85,000.

“On Christmas Eve we will serve a holiday dinner for the homeless at 5:30pm. Then on Christmas day we will serve Christmas lunch at 12:00 noon while we sing Christmas carols and play board games. We want to make this a special Christmas for those who suffer from homelessness and are away from their family.

“As temperatures continue to stay below freezing, we desperately need blankets, hats and gloves for people that don’t have these essentials. Any items you can donate would be greatly appreciated! In-kind donations can be dropped off at our mission:

CityTeam Portland
526 SE Grand Avenue, Portland, OR 97214
Phone: 503-231-9334

“We also hope that people will donate to CityTeam Portland before midnight on December 31st so we can pay all our bills. A generous donor is encouraging other people to donate to CityTeam with a gift matching opportunity. They will match all gifts (individual contributions, or combined as a group) of $100 or more up to $100,000 to help us make-up our shortfall.

“Thank you for anything you can do to help us serve all those in need during this extreme weather front. Please join me in praying for provision in this trying time.”

Julie Stephenson
Northwest Regional Director
www.cityteam.org/portland

***

Why It Matters To Me

First, I know Julie personally as I began visiting with her and the staff at both Portland and Seattle locations earlier this summer. She is a very dedicated, hardworking, kindhearted woman who is doing a lot of terrific things for the homeless communities in the NorthWest. She commutes back and forth between both cities and is a constant source of comfort, resources, and energy for those who engage in working with the homeless in the NorthWest.

Both shelters are engaged in providing support services that go beyond basic survival needs of food/shelter, including substance abuse recovery, a 12 step program for alcohol addiction, case management for educational, legal, medical, and psychological needs, and an education/career prep program to help their residents become employable again.

Second, it has been a very difficult year for me personally, and at times I have felt that I related more closely with those who struggle with the challenges of homelessness, than to my peers in the startup and venture communities.

In my case, I am fortunate to have a high level of education and personal resourcefulness, and a wealth of social capital in the form of loving friends and contacts across many cities who have supported me through difficult challenges for several months.

Yet if it weren’t for those factors, I or any of us who finds ourselves trapped and spiraling down in a poverty of spirit, could also be caught up in the spiral of tangible poverty and homelessness. Truly, we are not far from it, and when we have the resources to help others up, and a need is expressed, I feel that we should do what we can to offer help.

How We Can Help

Please consider donating any amount, even $1, to our ChipIn pledge (see below). This round of donations will close on December 31st, and we will submit a group donation to CityTeam Ministries on the New Year, which will be matched dollar for dollar by a third party donor.

If you live in Portland and have any extra blankets, gloves, hats, socks, or other warm articles of clothes, please consider taking them in to the Portland shelther at 526 SE Grand Avenue, Portland, OR 97214.

Please join me in supporting CityTeam at this time. If you are unable to donate, but have a blog or social networking site such as Twitter or FaceBook where you can link to or promote this blog post, please help spread the word.

Thanks.

-Carolynn

Business are inherently complicated, sticky, fuzzy, large-scale, operationally chaotic entities– which is probably at least one reason the 50-90% small business failure rate exists.

Let’s make it simple. A business is:

A translation of that would look like:

And finally, an example would be:

Often, startups get frustrated when looking for investment (or other external partnerships/support/resources) because they think they just need to spruce up their pitch documents and then they’re good to go.

It can be frustrating when the business plan is revised or rejected, or both, over and over again. Isn’t it just a document? Isn’t it true that no one cares about the business plan anyway?

The answer is “Yes, but…”

“Yes, it’s just a document, but if your documents are low quality, what does that say about your efforts elsewhere? Like your revenue model, hiring practices, or sales process?

“Yes, nobody cares about the business plan, but if the only thing you have to show IS the business plan, they start caring a lot about your plan– because they don’t have anything substantive to talk to you about. So it’s going to be ripped to shreds.”

(Interestingly– if you give investors or critics something to actually care or talk about, they immediately step the conversation up from a bashfest on your ideas, to a suggestion-fest on action steps.

Big difference. In the first case, they’re essentially telling you, “Hell, I have no idea if this will work or not, but what I do know, is that you are 95% hot air, with almost nothing to show for it. Come back in a year if you have something done by then.”)

Instead of focusing on talking or thinking about your idea, why not work to:

• Write a 1-page sales letter that gives an overview of the product, the price, and how to sign up
• Give the sales letter (either in person, or by email) to enough people to get 1 client to sign up for what you’re doing
• Hire an undergrad for 5 hours ($20 at 5 hours, or $100) to crank out a simple mockup of your website
• Go into your target client pool and get 3 purchase orders from clients who are willing to buy the full deal as soon the product is ready
• Interview staff who are willing to donate their time and will commit to coming on full-time when they/you are financially able to do so (pending funding or client sales
• Track site stats from your prototype release

In other words,

• Spend 2 hours to flesh out the triangle from above (use the “translation” one)
• Take 2 hours to sketch out the basic operations requirements (what are the operational components needed? What does your business need to do on a daily basis to produce the product/service in a way that delivers consistent results?) needed for the first 60 days of operating (starting from where you are currently).
• Take another 2 hours to sketch out the basic support framework: what are the systems, staff needs, partnerships, resources, etc. needed to pull off daily operations on a micro level?
• Take another 2 hours to take the previous operations & framework info, and dump it into a massive to do list.
• Cross things off that to do list EVERY DAY.

You get the idea.

Really, the question is, does ANYTHING in the tangible world exist, to show that you have transitioned from thinking about the concept, to taking action to push it forward into being a real life organization?

If the answer is no, why are you still sitting here reading this blog post???

***

If you are looking for help fleshing out the nuts & bolts details of your business in a way that is do-able, particularly with limited resources (funds or manpower), I can help. Click here to set up a coffee.

Over the past few months, I’ve had some conversations with local tech entrepreneur Marcelo Calbucci, of Seattle20.com, regarding how we can get more people in the startup community to blog.

We decided to write a joint blog post going over the basics of business blogging, and invited Scot Herrick and Ian Lurie to join us.

Here are the 4 articles to get you started:

• How to Set Up A Basic WordPress Blog, by Carolynn Duncan
• Finding Your Blogging Voice, by Marcelo Calbucci
• 15 Rules for Business Blogging, by Ian Lurie
• Marketing Your Career Through Blogging, by Scot Herrick

So, You Want To Blog, But…

Ok, so you’ve decided to take the plunge and start blogging. Except for one thing– you need to set up a blog. You’re not a geek, though, and you have zero technical skills– aack!

Should you hire a programmer? Is it worth it? How much will it cost? What do you do?

Take It Easy.

Relax. Setting up a blog is as easy as setting up a new hotmail or gmail account. You sign up, and there you go! Better than that, you can choose between $0 or $20 (total!) to set up a “blog-for-non-bloggers” on whatever website name you want.

10 Basics To Get Started

Here are 10 basic steps for setting up a basic blog using WordPress, (my favorite brand of blog!). You can also use Movable Type, TypePad, Blogger, or a bunch of others.

These instructions will be step-by-step for WordPress, but are generally similar to the other brands of blogs as well. You can click on any of the photos for a larger view.

Step 1. Go to www.wordpress.com and click “Sign Up Now!”.

Step 2. Create a WordPress account.

Step 3. Pick a free domain name.

Step 4. Go to your inbox and confirm your account.

Step 5. Go to your inbox to view the confirmation email.

Step 6. Take note of your username, password, and API key.

Step 6. Sign in to your new blog!

Step 7. Check out your “Dashboard”!

Step 8. Write a “blog post”:

Step 9. Change how your blog looks:

Step 10. Practice moderating comments.

The Fun Part!

You, my friend, are the proud owner of a fancy new blog you set up yourself. Not only are you a “blogger” now, you are now a GEEK! Enjoy that.

Final Thoughts

Most people don’t blog because they don’t know how (either with technical details, or the subject matter/content/writing), they just haven’t tried it, or they feel like it won’t make any difference.

Here is the truth: blogging is one of the easiest, most effective, cheapest, long-lasting, powerful ways to market yourself or your company/product.

If you are not blogging, ask yourself, WHY NOT? What is the hang-up?

If you are not blogging, I can promise you that you are leaving money on the table, and your competitors are eating you up online!

Two Ways To Get Help: Teach Yourself, or Hire Me

Teach Yourself

The best way to learn all the secret tricks to blogging is to jump in and start blogging. Click on a button and see what it does. (Try to be careful with the one called “delete”, however.)

You can find an encyclopedia of WordPress blogging tips here, here, or here.

Hire Me

If you would like to use blogging as a very, very easy & cheap way to kickstart your personal brand or as a part of your online marketing mix, but you need some 1-on-1 help to get things up and running, I would love to help.

Here are the options:

Have a few quick questions?

Ask me for free! (please limit chat to 5-10 min.)

Need personal 1-on-1 help for 30-60 minutes?

If you want to set up your blog yourself, but need help to troubleshoot problems, set up specific features, or otherwise get 1-on-1 help– set up a 30-60 minute “working coffee”.

(We’ll meet in person if you’re in Seattle or Portland, or online via webconference if out of the area. New clients– your first coffee is only $25!)

Email me at carolynn AT coffeewithanexpert DOT com to set up a time.

Want me to set everything up, including support through your first 5 blog entries?

Delegation– always a good choice.

I’ll set up your blog, including setting up your own domain name, website hosting, 5-10 themes you have handpicked, 5 pages (About Us, Contact Us, Services, Our Team/My Bio, and What Our Clients Say), and support while you write your first 5 blog posts.

I’ll also walk you through how to use it, and show you the secret tricks and add-ons you can use to push your brand even further.

Email me directly at carolynn AT coffeewithanexpert DOT com, to let me know you’re interested in a blog package, and we’ll go from there.

So… get started!

You’ve got 10 basics, and enough info to teach yourself or hire help today. If you do get started, leave a comment with your new blog info so we can start learning about you or your company.

Welcome to the blogosphere!

During this past year, I had something like 200 coffee meetings with startups.

What a privilege! Every entrepreneur I have met with is a fierce combination of hardworking, innovator, scrappy, passionate, with a dash of out-to-change-the-world-or-else.

More impressively, they all have one thing in common: building a company on $0, trying to make a dollar out of fifteen cents. It got me thinking– there should be a way to:

a) Pool the talents & skills already here within the startup community
b) Hook bootstrappers up with part-time gigs that don’t distract from the company
c) Make solving startup problems easy, fast, cheap, and effective

For these reasons, I started a project called CoffeeWithAnExpert.com. This is my 5th “Hundred Dollar Business” (only spent $11 since July, woo hoo!).

Currently, we are in a friends & family launch phase, and if you read this quick PDF, you’ll see a cartoon I scribbled out that tells you what we’re all about.

Who Do You Know…?

While we are in our own bootstrapping mode, I am eating my own dog food! And by that I mean I am available for hire as a Startup Expert through CoffeeWithAnExpert.com.

So– are you (or someone you know?) struggling with fundraising, revenue generation, or chaotic operations? I would love any referrals or intros you can make on my behalf to entrepreneurs I can help in these areas.

The Menu

It’s pretty low key: startups can get:

1-2 questions: free
New Client Coffee: $25
1-5 Sessions: $ Hourly rate (variable depending on the startup’s current stage)

Please send an email intro (carolynn AT coffeewithanexpert DOT com) or have individuals contact me through my profile.

Also, if you are an extreme bootstrapper yourself, with skills to spare and in need of a way to bring home some bacon, feel free to sign up as an Expert.

I’ll keep you posted as we get ready for our next phase of launch later this month. And, if you have any ideas or suggestions about the project, please let us know.

So, I was thinking lately about how difficult it for entrepreneurs to translate the vision into reality.

Why? Because entrepreneurship is like… buiding a house from scratch, with no master plan, no help, no materials. And no money.

And it has to be better than all of the other houses out there.

And if you don’t build and sell the house within 6 months, you’re fired.

So– yeah, it’s tough.

I have a fun idea in mind, which I will be trying out in the next few ideas, involving– of course– big paper. I’ll post photos and a follow-up blog.

Meanwhile– what are your thoughts? As an entrepreneur, how do you take your vision and crank it out into reality? How do you go about “making it happen”?

To follow up on the “6 Questions Every CEO Should Ask On A Weekly Basis”…

I have been using the checklist, and it got me back on track FAST, in a way where I had a comprehensive grasp on the major sections of the project I need to be making progress on.

It was awesome!

So I took the checklist and put it into a Google Form, that I’ll be using now on Monday mornings for a quick check up. I’ll let you know how it goes!

See below for the example. By the way, please do NOT fill out this form– I’ve included it to demonstrate how I am using it.

(Otherwise, I will learn a lot about how your company is currently doing! )

I’ve been thinking often about operations– specifically, how to keep things on track in a simple but effective way.

Startups don’t have time to spare– CEOs to keep tabs on things overall on a regular basis, but without creating unnecessary tasks.

I put together this list, and will start using it to monitor CoffeeWithAnExpert.com on a weekly basis.

I’ll let you know if it’s effectively charting the things I need to keep in check, and will provide an updated checklist after I use it a few times.

If you decide to use this, leave a comment and let us know if it works for you!

***

Download a Word version

6 Questions CEOs Should Ask Themselves On A Weekly Basis

1. Is my business model working?

What to measure it by:

• There is a consistent need from clients/market (they are asking for what you have)
• Your product meets that need precisely, “plus” offers something extra (differentiation).
• You are seeing steady revenue*

(Revenue at certain stages of the company can be supplemented/replaced by “currency” in the form of users/traffic/partners/traction/interested investors/etc., but at the end of the day, there must be SOME kind of money flowing into the business, or it will die.)

2. Are operational processes in place to support current work flow?

What to measure it by:

• Supply of ingredients/resources is adequate
• Manufacturing/production process of product/service results in consistent high quality product/service
• Distribution channels are open & working
• Sales process is working
• Support systems (admin, ops, etc.) are handling work flow

3. Is existing infrastructure enough to support operations?

What to measure it by:

• Core framework is in place (technology/facilities/equipment)
• Right people are on team and in right roles
• External partnerships are in good standing

4. Are my people happy?

What to measure it by:

• Clients are happy
• Employees are happy
• Management team is happy
• I (CEO) am happy
• Advisors/investors/partners are happy

5. What’s my cash position?

What to measure it by:

Cash on hand is enough to pay 2 weeks’ needs plus support 30 days incoming/outgoing transactions.

6. Am I consistently hitting strategic milestones?

What to measure it by:

Pull out your milestones, and compare what you accomplished last week with where you are at this week:

Are you:

• Right on track?
• Ahead of schedule?
• Behind schedule?

Earlier, I wrote about the Brain-to-Hand Spectrum of turning your idea into a reality.

In a more nuts-and-bolts description, there are three steps to getting your idea out of your brain, and into a customer’s hands:

Step 1: Define the concept.

Do this by going through a pitch-writing exercise (see Basic Pitch Guidelines and Basic Pitch Worksheet) or if you’re feeling brave, use 4 Levels of Core Business Planning.

Step 2: Figure out the end goal for the next year.

Figuring out everything for the next 5 years will drive you crazy. But figuring out the next year, is about the same as figuring out what classes you need to take during your freshman year of high school or college.

First, decide where you’re at, and where you can feasibly be in 12 months. Then map out basic milestones month by month to get there (see Milestones Planning).

Step 3: Treat all of the info on Step 2 as your to-do list.

Quite simply, get off your couch, and leave your house every day, crossing things off the list from Step 2, one by one until you have made it through the next 12 months. Lather, rinse, repeat.

How to Define 12-Month Milestones

Begin with tangible results in mind-

“In 1 year, I need to be at level Z. Right now, I am at level A. All of the steps in between are B, C, D, E, F, G, H….”

Parcel out specific milestones over the next 12 months that will produce systematic progress in developing the concept from one level to the next.

Keep it simple and basic—see the following sample:

Month 1 Milestones: through October 2008

Time period: 1 month from now
Current level: 5 clients, 1-man team.
Sales: 5 paying customers, 5 potential clients, and 250 on mailing list.
Product Development: We will improve features X, Y, and Z during the next 30 days.
Management team/staff: Currently have CEO running basic operations.
Revenue projected: $1500
Expenses: $300
Funding projected: $0
Debt projected: $0
Funds available: $5,000
Next level: 10 clients, 1 man team

Month 1 should start with exactly where you are right now. Make this planning very incremental, non-optimistic.

Think, “is it realistic to go from month 1’s goals to month 2? Can I do that given the amount of resources I have on hand, or the amount of resources I can pull together during 40-hour workweeks in a 30-day period?”

If the answer is no, then cut your goals back. Always underpromise, overdeliver. Keep it in the land of realistic, achievable, not-too-difficult-to-get-it-done.

Your turn! Go ahead and take a stab at planning basic milestones.