Project vs. Business
• A project centers around activity,
technology, function, and results
•A business centers around the same
things, except it takes its cues from a
market, rather than one contracting
Business = Project + Market
•What am I doing?
•Who do I need to do this?
•Who else is doing anything close?
•Why isn’t anyone else doing this?
•How will I do this?
•Who’ll pay for this?
•How much will they pay?
•What else could they use?
•How will they get/buy it?
•What’re the cool kids doing?
•How much could I sell?
•How much could I make?
•What else could I be doing?
•Where will I get help?
•What will it take to get going?
The Rough & Dirty Guide
•Take the amount of money you think
•Multiply that by 5x, 10x, or 20x
•These are exit multiples
•Divide that amount by how much you’re
willing to sell of your company (e.g. 20%,
•Divide that amount by 5
•That’s how much you need in profits by
•I need $250K, and I have a demo
•$250K x 20 = $5MM
•If I give 25%, then $5MM / .25 = $20MM
•$20MM / 5 = $4MM in earnings
•$4MM / .8 = $5MM in sales
Now I Feel Sick…
•Analyze your data…
•Analyze your assumptions…
•Analyze your plan…
•Analyze your wallet…
•Analyze your heart…
•Know your craft
•Know your market
•Ask for help (of all kinds) early and