Here's a question we get a lot:
We do not have a live product yet or bringing in any revenue. We are just making projections at this point. In order for us to get investors, we need to have solid projections and I need some hand holding here since I don't have any experience with this.
Revenue Forecasting
Revenue forecasting pre-revenue is a guessing game. Your goal to get investors interested is to test customer acquisition cost and pricing.
- What is your fastest path to revenue?
- Can you test customer acquisition before you develop a product? How much does it cost to get someone to your website? How much does it cost to get someone to give you their email address? How much does it cost to get someone to give you a credit card? Market Research 2.0 walks through this test-it way of proving a concept.
Expense Forecasting
Expense forecasting is easy.
- How much do you have to get paid to be able to work on this full time?
- What help do you need from others and what will it cost you to get their help?
- What are the steps you have to do to develop your product?
Case Study
📝Noah Auerhahn and 📝Robin Healthcare did this the best I've seen. When I invested, they had spent a modest amount developing a device that sat in the exam room and sent the audio and video up to the cloud, where they then did the notes for a handful of doctors who were already paying a monthly fee. More doctors wanted to sign up when they saw the device and the initial doctors using it.