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by chris_dcosta
4839 days ago
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I totally agree that actions speak louder than words, and a app or site with traction certainly demonstrates that an idea works, but the point you missed is the money point. If you have money coming in, why do you need to raise more money? If you plan to raise more money on the back of traction how much do you need, why do you need it and how will you spend it? What does your balance sheet look like? What is your cash flow? All these questions are answered by a business plan, and you cannot avoid answering them just because you have traction, no matter what you say. |
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You don't need a 5 page business plan or a 15 slide presentation to answer those questions. You can answer all of those questions in 5 minutes of questioning from investors.
And yes, you CAN avoid answering those questions if you have traction. If you have MASSIVE traction, your cash flow and balance sheet is pretty much irrelevant since the assumption is you can monetize later (see: Facebook, Instagram, Twitter, Tumblr, many other social companies). Even in Silicon Valley this is the exception, make no mistake, and generally doesn't apply to B2B or B2D(eveloper) companies, but it is one possibility.