Imagine, if you will, a contractor who approaches you with a vague plan for working on your house. They offer no clear timeline or vision for the finished product. This scenario, though absurd, mirrors the pitch many startup founders make to potential investors without a decent “use of funds” slide.
Just as you wouldn’t hire a contractor with no blueprint or timeline for your home, investors are not looking to pour money into a startup without a clear plan for success. They want to see a roadmap of milestones and achievements, much like rooms and fixtures in a house, that indicate the startup’s potential for success and growth. Mistakes may happen, but having a plan, schedule, and contingency measures in place is essential.
While founders may fear providing detailed plans due to uncertainty or fear of failure, it’s important to show that they have thought through potential obstacles and have a realistic plan for success. The journey of building a startup is an adventure filled with unexpected twists and turns, much like the construction of a dream home. But just as with a home renovation, having a solid plan is essential for success in the startup world.
