Entrepreneur.com recently featured an infographic from Founder Institute, which I believe warrants me putting aside my usual feeling for info graphics: disgust. Inforgraphics are so overdone these days that I automatically want to dismiss them. If the topic is good though, I force myself to at least scan them.
I’m not going to lie, this information would have been much better presented in a regular blog post. The information is worth checking out though, so I encourage you to do so. I’ll also concede that including the info in an infographic might be why they were able to get that specific collection of information on Entrepreneur.com. So, infographics aren’t all bad.
The three points that they picked out that always make me cringe are:
1. Projecting $1 billion in revenue for year 5
There is no reason to believe that most businesses will ever reach those types of numbers, let alone in that short a period of time. I don’t recommend being realistic the way your dad might tell you to be, but don’t be ridiculous either.
2. Not connecting the financial model to the narrative
A pitch is essentially a story. A good story should feel connected throughout and as if everything follows logically. If the financial model feels outside of the story, then it can feel tacked on and like it will be more likely to fail.
3. Not knowing your TAM(Total Addressable Market) and SAM(Serviceable Addressable Market)
If you don’t know how big the market you are attacking is or how large a segment of that market your product addresses, then do you know what you are doing? Any investor worth their salt will question that right away.
Doing the math, 10-3=7, tells me that there are still seven useful points for you to learn, so head on over to the article on Entrepreneur.com and check it out. If you have a favorite tip you want to share, the comments are right below!