Purpose of Prototypes in Commercialization In commercializing your technology one of the most important elements is building a prototype. Prototypes provide several benefits and should be a high priority to complete as soon as possible.  Many inventors use their resources to write another white paper or run another experiment. The…

Best Practices for Grant Writing Raising grant funding is a key step in commercializing your technology. Here are some best practices for grant writing to consider: Research the goals and objectives of grants to understand what is currently of interest. Make sure you have set up a legal entity for…

Funding Options for Tech Commercialization There are several options for funding the commercialization of technology. Here’s a list of sources to consider: Self-funding — consider putting some of your own funds into the business. This proves to others your commitment to the project. Make sure this funding goes to key…

Finding Anchor Customers An anchor customer is one that provides a substantial amount of business on a recurring basis. These customers are important as they give you a base level of business each month. You save the time and cost of prospecting for the customer as they are already signed…

When Should You License Your Technology Instead of Building a Startup In commercializing your technology there are two primary paths:  building a startup or licensing the technology to others. You should consider licensing your technology when the following conditions exist: The development cost of bringing the final product to market…

How To License Your Technology Licensing your technology to another company provides another path to commercialization. Here are some key steps to licensing your technology: Prepare information about the technology including an introduction, product description, and manufacturing information. Also document the product benefits, market research, and pricing. The product information…

What Is Licensing in Commercialization Licensing in commercialization is the right to manufacture and sell a product with the technology of another company.   In return for the right, the licensee pays a royalty fee for each unit sold. Licensing brings the following advantages to the licensee: You gain the know-how…

Key Legal Documents Used in Commercialization There are several legal documents used in the commercialization process Here’s a list of key documents to know: Non-disclosure agreement — referred to as an NDA, this document requires the signatories to confidentiality with regards to information about the project. Material transfer agreement —…

Different Paths of Commercialization There are different paths of commercialization. These paths include startups and licensing. Founders license the technology from the source and then establish a company to create a product to sell for a profit. The startup requires a team to build, sell, and support the product. The…

Innovation Models Technology commercialization applies new technologies to the formation of a business. Innovation drives technology commercialization. To grow your business you may need to foster the development of the technology and its supporting functions. Here are several innovation models to consider to grow your technology. Open innovation model. Some…

Intellectual Property in Commercialization A key component in commercialization is intellectual property. Intellectual property refers to work or invention that comes from the creativity of the mind such as a design, literature, or artistic works.  It comes in several forms including patents, copyrights, trademarks, trade secrets, and industrial designs. Government…

Testing Your Idea for Commercialization Before commercializing your technology, test the idea with these questions: What product should you build? There are many ways to apply technology to a problem. Who is the target customer and can they pay for it? It’s important to gain clarity on your target audience…

Key Steps in Commercialization Once you start down the path of commercialization, there are some key steps to accomplish. Determine patent strategy. There are several ways to protect intellectual property including patents, trade secrets, trademarks, and more. Review each option for your technology. Gain a Freedom to Operate opinion. This…

What Is Commercialization Commercialization is transitioning technologies from the lab into products in the marketplace. It is important because it brings new technologies to solve problems. Technologies and products bring new capabilities and can also reduce the costs of existing solutions. Commercialization requires refactoring the technology into a product that…

Key Questions for Succession Planning Succession planning is a key part of running a family office. Here are some key questions to consider in planning your succession program. Do you need a succession plan? All family offices need a plan to help transition the business to the next management team….

Succession Planning for Family Offices In running a family office, succession planning is an important function. Here are some key considerations in succession planning: Understand the generational differences in the family and how it may impact the future leadership. Some generations do not want to continue a family office but…

Best Practices for Running a Family Office In running a family office here are some best practices to consider: Set up a mission statement that captures the values of the family. Tie that mission statement to the operational goals and financial results. Set up the legal entity and the operations…

Best Practices for Setting Up a Family Office In setting up a family office consider these best practices: Build an investment strategy that leverages the strengths of the family including their skills, resources and network. Set up a formal diligence process to screen incoming deals in a rigorous manner. Assess…

Drawbacks to Starting a Family Office There are drawbacks in starting up a family office. Consider these challenges in setting up your family office. The upfront and ongoing costs can be considerable. These costs include the following: Hiring professionals and operational people can cost a great deal in today’s market….

Operational Objectives for a Family Office In running a family office there are several key operational objectives for the family office to achieve. Here’s a list of key areas to consider: Governance. This includes leadership, board management, communications and succession planning. The leadership should continuously improve the operational efficiency of…

Choosing a Leader for a Family Office In setting up a family office, one must choose someone to lead it. There are several types of leaders to consider: Operations — focuses on the day-to-day tasks of running the business. This leader provides oversight over all aspects of the business including…

Problems in Family Offices There are challenges in running a family office. Here are some key problems to watch out for: Treating the family office as a hobby rather than a business. The family office is a legal entity with employees, investments, and tax filings. It’s important to treat it…

Functions of the Family Office The family office provides many functions in a family business. Here’s a list of functions to consider including in your family office: Wealth management – this involves setting objectives, identifying investment opportunities and providing ongoing oversight. Impact focus — this includes pursuing investments and activities…

Types of Family Offices Family offices vary in type and structure. Here are three types of family office structures to consider. Single-family office. This structure provides services exclusively to one family. It offers the most customized program. It is the most expensive type of family office structure. It works best…

Benefits of a Family Office There are several benefits to setting up a family office. Here is a list of key benefits to consider: Carry out the stated mission of the family business. Optimize the wealth of the family through investment strategies. Reduce taxes through tax-advantaged structures. Provide education to…

Structuring a Family Office for Tax Benefits Structuring a family office for tax benefits is a key consideration in setting up a family office.  Consider these points in structuring your family business for tax purposes. Because the family office is a separate legal entity, one can move additional costs from…

Structuring a Family Office Structuring a family office requires many decisions in order to find the optimal solution. Consider these points in structuring your family business: Who does the family business serve? This typically includes the family and their offspring.   What services should the family office provide? There’s a cost…

Goals of a Family Office Family offices can pursue several goals. Here’s a list of key goals to consider for your family office and their implications in setting up the business. Investments — the complexity of the investments determines the number and type of advisors to engage. The simpler the…

Do You Need a Family Office Before setting up a family office, first consider if you need one. Here are some key considerations to review: Do you have the income to support a family office? Aside from a high net worth on paper, you’ll also need to fund the operations…

Keys Steps in Setting Up a Family Office In launching a family office there are several decisions to make. Here are key steps in setting up a family office: Choose a family office structure. There are three types of family offices, single, multi, and virtual. The single-family office serves one…

Before Setting Up a Family Office A family office manages the wealth of a family. Before starting a family office consider these points: What is the asset level of the family office? The fee is based on the assets under management. The higher the asset level, the higher the fee….

How the Board Can Help During a Turnaround During a turnaround, the board should help. Here are some key steps to engage the board in the turnaround process. Interview the board for their input on the turnaround plan. Reconfirm the board’s role in the company. Define the specific activities the…

Why Turnarounds Fail Just as not all startups succeed so not all turnarounds succeed either. Here’s a list of reasons why turnarounds fail: Failure to adapt. The market continually changes so it’s important to keep up. Make sure you are following the market and change to meet it. Failure to…

Managing Employees in a Turnaround During a turnaround, it’s important to maintain team morale and involve everyone in the process. Here are some key steps to managing the team. Make clear the need for the turnaround. Employees may not have visibility on the financials and don’t know how much the…

The Four Rs To Turnaround a Business A turnaround can take several forms based on the severity of the changes required. Some businesses require a complete overhaul of their operations while others perform a repositioning or rebranding. Here are the four Rs to turn around your startup: Retrenchment. In retrenchment,…

Key Tests of a Turnaround Process In turning around a startup there are key tests you must pass to achieve success. Here’s a list of tests: Is the core business viable? If the basic business won’t work then no amount of funding or strategy will save it. Do the team…

Best Practices for a Turnaround There’s an old saying, ‘Never let a good crisis go to waste’. A turnaround is not only a crisis but also an opportunity to rebrand, redirect, and reposition the company. Here are some best practices for working on a business turnaround. View each turnaround as…

How To Turnaround a Business Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. A business turnaround is just like any other aspect of running a business. Here are some key steps in running a turnaround program for your…

Hiring a Turnaround CEO In many turnaround situations, you’ll need to hire a new CEO. Here are some key points to consider when hiring: Track record — look for someone with a proven track record in turning around businesses. Cash management — needs to monitor cash on a daily basis…

Stages of a Turnaround Process There are several stages in a business turnaround. Consider these phases for your startup: Assessment: This phase determines the crises and their impact on the business. This can include both internal and external factors. Triage: This phase sorts through the potential strategies to recover the…

Key Strategies To Turnaround a Business To turn around a business you must take action early and not wait till it’s too late. Here are some key strategies to take to turn around your business: Assess the situation. Review the market to see if the company is still competitive in…

Signs the Startup Needs a Turnaround Here are some signs your startup needs a turnaround: You’re close to breaching loan covenants. The financial performance is still below expectations. The startup’s revenue and profitability are below the industry average. Cash flow continues to be a problem. The startup has been running…

Business Turnarounds A business turnaround is taking a company that is underperforming and modifying its operations and strategy so that it recovers financially. Startups who are candidates for a turnaround are not doing well. They suffer from a lack of leadership, focus, strategy, or execution.  Consider these steps in a…

Data Models A data model is a visualization of the data showing the structure, rules, and relationships for how it works. Here’s a list of key data models to consider for your data program: Concept — shows at a high level the overview of the data blocks and what they…

Data Terms To Know In working with data there are key terms used in the industry. Here is a list of terms to know: Data governance — a set of rules and procedures for managing data for integrity, regulatory and security purposes. Data warehouse — a central repository for all…

Data Sources for Monetization In a startup, there are many sources of data to draw from for monetization. You can capture primary data from your own systems. Consider this list for gathering data from your startup: Start with your customer database or CRM. Review the webforms that capture inbound user…

Key Factors in Building a Data Business In building a data business here are some key factors to focus on: Provide high-quality data that provides value to the customer. Low-quality data commands a lower revenue rate. Look for data that others don’t have. The more unique the data the higher…

Using Data To Increase Sales The market for data continues to grow providing an opportunity for startups to increase revenue by monetizing their data. Consider these points for monetizing your data: Sell your data directly to other companies.  This could be customer behavior, customer preferences, market data and more. Be…

Five Business Models for Linked Data Linked data is structured data that is linked to other data making it more useful for searches and queries. A wiki site often holds linked data sets. Here’s a list of five business models around the use of linked data. Subscription revenue such as…

Business Model Examples for Data There are several business models used for monetizing data. Here are some of the more commonly used ones: Brokerage — this model matches data providers for data users for a fee. There are thousands of data sets available and many of them are not easily…

Building a Data-Driven Business Model A data-driven business model can accomplish a number of goals such as increasing brand awareness, understanding the customer better, and improving products and services. Here are the key steps in building a data-driven business model: First, determine the outcome of the business model. Find clarity…

Data Monetization Requirements Monetizing data requires several key components. Here’s a list of components needed to monetize your startups data: Ability to acquire the data — the more you can source your own data versus relying on others the more valuable your data will be. Ability to store the data…

Data Business Models There are several ways to approach data monetization. Here are four approaches to consider for your data: Basic content — this business model provides raw or analyzed data that can be used as is.  An example is a customer list with contact information. One can sell this…

Data Strategy In monetizing data for your startup, you’ll need a data strategy. Here are the key components of a data strategy: Identify the problem to solve — the problem must be specific enough to indicate the type of data needed to present a solution. Store the data — you’ll…

How To Monetize Your Data There are several business models for monetizing data. Consider these models for your startup: Mining your own data — this business model takes your own startups data and uses it to provide new services and products for the business. This could be creating a resource…

Data Monetization Models There are several data monetization models for startups.  Sources of data come from a large network of customers, in depth content, or heavily trafficked websites. Consider these for your startup. Data as a service — takes data generated by the startup and makes it available to other…

What Is a Data Strategy and Why Is It Important A data strategy is a comprehensive plan to use data to drive business decisions. You can use it to monetize data to achieve your business goals. Data strategy has four components: Story — it tells the goals of your business…

UX Design UX design provides the experience the user encounters when using a product. This is different from the user interface which is simply how the information is rendered to the user. The UI consists of the typography, color palettes, and navigation. The UX is the customer journey with the…

Product Engagement Metrics Product engagement is a key metric to track as it can predict revenue growth and churn rates.  To track product engagement metrics consider the following: Build tracking metrics into the product that captures user activities. Capture key metrics such as number of active daily/weekly/monthly users. Capture trial…

Product Data Product data refers to the data about a particular product or generated by that product.  This is separate from version control which tracks each version of the product and the features it contains. Product data refers to the brand name, product description, schematics, source code, cost to build,…

Pre-Seed Product Work In the early stages of the startup, before the product is designed and launched, there’s product management work to be done. Consider these points for the pre-seed stage product work: Focus on the problem the customer has. Understand it very well.  Don’t get your heart set on…

Product Management Best Practices Product management is an ongoing process of analyzing the market and monitoring customer needs. Here are some best practices for implementing product management at your startup: Focus on your customer and not your product. If every discussion with a customer starts with your product then you…

Product Experience Best Practices Product experience is the customer’s journey with the product from adoption to trial to ongoing usage.  This is separate from the customer experience which includes interactions with the company including buying the product, training, support, and more. The better the product experience, the better the overall…

Product Differentiation Features In product development, there are several types of features. These include basic requirements, nice to haves and differentiators. The basic requirements are table stakes.  All products in the space have those features and customers expect them to be there. These are must have features. Then there are…

Before Product Development Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. To ensure you are developing the right product for your target customer ask these questions first: What are you losing customers over? If customers choose another product…

Product Challenges There are many challenges in developing, launching and maintaining a product.  Here’s a list of challenges to consider: Choosing what product to build. Look for customers with unmet needs and build for them. Choosing your ideal customer. The ideal customer is the one you chose with unmet needs….

MVP Mistakes In starting a business there comes the time to build the minimum viable product. The most common mistake is planning a grand vision for the initial product. The MVP will be much smaller than the vision. MVPs often gather customer feedback on the usefulness of the product but…

Minimize the MVP Many founders brainstorm a grand vision for their product. While vision is a must have, realize you’ll need to start small. Raising too much funding early in the business will cost the founder unnecessary dilution. In building the MVP think minimum and not maximum. Keep the team…

What Is Product Management Product management drives the development, launch, and ongoing support of the product. Here’s a list of duties and responsibilities: Research the market and customers for the proposed product. Identify the customers’ key care abouts and pain points.  Size the potential market for the product.  Develop a…

Product Roadmap The product roadmap lays out the vision of the product at a high level. It shows where the product is going and what must be done at each stage. It’s a visionary goal to share with potential investors and customers. In building your product roadmap consider the following:…

Product Management Tools Product management requires many skills and tasks to complete. There are tools that help accomplish these tasks. Here’s a list of tools to consider: User tracking and analysis – there is embedded software that tracks and analyzes user behavior.  This tells you what part of the product…

Product Management Skills Product management requires several skills to succeed. Here’s a list of skills to consider: Communication skills — the product manager communicates verbally and in writing with prospective users, customers, developers, and management. This comes in the form of planning the product, gathering feedback on the current version,…

Product Management in the Launch The product manager plays a key role in the launch of the product. Before the launch the product manager prepares sales and marketing. This includes product training, competition analysis, and website content. The goal of the launch is to establish an initial set of customers…

How To Recover From a Bad Investment If you invest long enough you’ll make a bad investment. Here are some causes for a bad investment: Overpaying for the startup through too high a valuation. Making a snap decision on just a few factors such as the team or the market….

How To Manage Retaliation Retaliation is when a manager takes adverse actions against a whistleblower. This could be in the form of termination, reduction in salary or loss of benefits. Retaliation laws make it illegal for a manager to retaliate against an employee who blew the whistle. This includes potential,…

How To Keep Your Job After Whistleblowing Keeping your job after whistleblowing can be a challenge.  Consider these steps to protect yourself: Retain an attorney to advise on the legal ramifications. Keep notes about calls, meetings, actions, and any retaliations from managers. Keep a copy of your performance reviews, work…

Best Practices for Whistleblowers Many people have become whistleblowers. Here’s a list of best practices based on their experience: Find a lawyer before you become a whistleblower. Choose one carefully after proper research and one that works on a contingency basis. Maintain anonymity throughout the case and for as long…

What You Should Know About Whistleblowing Whistleblowers provide information to the authorities to help stop fraud. Here’s what you need to know about whistleblowing: There are multiple laws around whistleblowing so you should know the relevant laws for your situation. Whistleblowers are portrayed as downtrodden outcasts by the media which…

How To Report Fraud Fraud sometimes arises in the startup world. Here’s how to report fraud should it happen to you. If you discover fraud don’t pay any more money into it. Collect the relevant information and documents. This includes names of the suspected perpetrators and their contact details. Any…

How Do Whistleblower Laws Protect You Whistleblower laws protect those who report fraud, waste, and abuse to the authorities. Here’s a list of cases of protections provided to federal employees: Disclosures made to those engaging in bad acts. Employees motive for reporting the bad acts. Disclosures made while the employee…

Filing a Complaint With the SEC The Securities and Exchange Commission or SEC oversees the securities industry in the US. Here’s a list of sources of fraud related to securities: Ponzi and pyramid schemes in which funds collected from one investor are paid to another investor with no actual investment….

Claiming Whistleblower Status There are three Whistleblower programs, False Claims, SEC Whistleblower, and IRS Whistleblower. One can file multiple claims under each of the programs. One must file within a time limit of the act of fraud which in most cases is 10 years. Some IRS and SEC claims require…

Team by Stage of Funding At each stage of funding the startup will need a team to accomplish the goals. Here’s the team configuration at each stage: PreSeed – Founder and technical cofounder. The early-stage team needs someone building it and someone selling it. Seed — Founder and technical cofounder….

Success Rate by Stage of Funding The success rate of startups declines as one moves from seed to Series A and so forth. Success is defined as a successful exit for the investors through an acquisition of the company. Here’s the rate of success of startups at each stage of…

Primary Work by Stage of Funding At each stage of funding the startup team takes on a new set of tasks. Here’s the primary work at each stage: PreSeed — Define the market and identify the target customer. The early-stage team researches the market and talks with potential customers about…

Investors by Stage of Funding Each stage of funding brings a different set of investors. Here’s a list of investors to pursue by stage. Pre-Seed — Founders fund their initial startup research and market development. It’s too soon to take outside funding for what is not yet a formed business…

Boards and Advisors by Stage of Funding Each stage of funding brings a different set of advisors and board members. Here’s a list of advisors and board members to pursue by stage. Pre-Seed — Informal advisors and board members. They provide domain knowledge about target industries. Seed — Informal advisors…

Financial Work by Stage of Funding Each stage of funding requires financial work to be done by the startup. Here’s a list of financial goals to consider for your startups fundraise: Pre-seed — identify locked value in a customer segment. The output of this stage is a target market that…

Valuations by Stage of Funding At each stage of funding there’s a valuation range for the startup. This changes over time with fluctuations in the market and by sector. Here’s a list of ranges to consider for your startups fundraise: Pre-seed — $50K to $100K The output of this stage…

Fundraise Amount by Stage of Funding At each stage of funding, there’s a standard amount to raise. Here are the fundraising amounts by stage: Pre-seed — $250K to $500K This funding sets up the business and launches the customer discovery and product development process. Seed — $500K to $1M This…

Product Work by Stage of Funding The founder works on the product throughout the life of the business. Here’s the product work to be done at each stage of funding: Pre-seed — research the market to identify the customer careabouts and product features. Check the competition for their positioning and…

Purpose of Family and Friends Funding Family and friend funding is often used to start a business. Here are some key uses of funding at this stage: File the legal entity paperwork for an LLC, not a Delaware C corporation.  You can file for a Delaware C later if the…

Stages of Funding for Startups Startups go through a series of stages from launch to growth to scale. Each stage brings funding to the startup that serves the needs of its stage. Here’s a list of stages for startup funding: Pre-seed — this funding helps develop an idea, research the…

What is a whistleblower? Internal fraud is often caught by an employee. The employee who sounds the alarm is called a whistle-blower. The whistleblower is someone who reports fraud to the authorities. Whistleblowers fear retaliation for outing a manager or other employee. Those who want protections for keeping their job…

More Ways To Prevent Fraud in a Startup There are several types of online fraud. Here is a list of attacks to watch out for: Bots — these automated tools can infect your website and emails with viruses. Denial of service attack — this disables your website by sending too…

How To Avoid Fraud Fraud can be costly to a startup. Take these steps to avoid fraud in your business. Separate accounting duties — have at least two people handling the accounting and separate their functions. Know your team — run background checks on new hires and know your business…

Types of Financial Fraud There are several types of financial fraud related to startups in the investment industry. Here’s a list to consider: Misrepresentations — fraudsters can lie about the value, risks, and costs of financial investments. This also includes misrepresenting the financial condition and omitting key facts. Regulatory violations…

External Sources of Fraud There are several sources of fraud from outside a business. External sources of fraud pretend to be someone you trust. They create a sense of urgency and then demand payments. Here’s a list of common sources of external fraud: Fake invoices — the invoices show services…

Internal Sources of Fraud There are several sources of fraud within a business. Here’s a list of internal sources to review: Identity theft — the capture and selling of personal information for illegal uses. This is done by fraudsters capturing employee information through bank accounts and tax returns.  Asset misappropriation…

Red Flags Indicating Fraud Most fraud in businesses comes from employees and the management team. Here’s a list of employee red flags to watch for: Lifestyle changes show expensive new possessions such as new cars and homes. Substantial personal debt Addictions such as gambling or alcohol cause behavior change. Employees…