What It Takes for Start-Ups to Succeed: Cash
Is the problem you’re solving for clients a neck wound or a scratch?
Don Thompson, Business Mentor
In this blog series CoLabourNation founder, Sandra Reimer, interviews start-up advisors about what it takes for start-up founders to succeed. Interview #1 is with start-up business mentor Don Thompson.
You Must Have Cash
Don Thompson, Business Mentor/ Amazon E-Commerce Expert
“Of course, mental toughness and tenacity are important to [start-up success]. But if you don’t have enough cash, it doesn’t matter how tough you are,” says start-up and scale-up business mentor Don Thompson.
As a no-nonsense engineer by training, Don helps founders realistically assess their business ideas and plans for growth. He advises start-up founders through Innovation Guelph and the Accelerator Centre in Ontario. Clients appreciate Don’s expertise in product development, go-to-market and product life cycle management to help bring their products to market.
Evaluate Your Revenue Model
Two of Don’s favourite questions are “What’s the quickest path to cash?” and “Is the problem you’re solving for clients a neck wound or just a scratch for them?”
“I help business owners remove emotion and look at revenue models.” He told one passionate founder struggling to get paying customers, “If they are not willing to pay, they don’t value what you are doing.” Ultimately, the owner decided the idea wasn’t a business.
Saving Founders Time and Frustration
A former Head of Product Management at Amazon and current Amazon E-Commerce expert, Don mainly advises product-based businesses. He knows it takes significant investment to bring products to market. “You can’t build your business on grants.”
Don recalls a product-based company that couldn’t access the $100,000 needed to reach the next level. Grateful for Don’s straight-up advice that saved months of floundering, the owner reduced the business back to a side gig.
Don saved another founder years of grief by suggesting the problem he was trying to solve was too big. “His business wouldn’t be profitable until he was bringing in more than $100 million in revenue.”
Quick with humour and surprisingly supportive, Don admits he’s “20% cheerleader and 80% tough love coach.” He says, “I have mellowed over the years. But if you want a hug, go somewhere else.”
Connect with Don on LinkedIn or through his Amazon marketing agency Beacon Commerce.
Need help validating or communicating the value of your startup products and services? CoLabourNation has vetted Canadian freelancers who can help with market research, branding, copywriting and more. Contact us.