Mike Hudack

Hi. I'm Mike Hudack and this is my Tumblr. I'm a high school dropout, the CEO of blip.tv and a former warblogger. Also check out the blip.tv blog.

Creating an operating plan for 2010

bijan:

This time of year, many venture backed startups have created or are putting together their operating plan for 2010.

Few suggestions for early stage/pre revenue companies:

1. Start with the ending. What do you want to accomplish by the end of next year and why?

2. Set quarterly objectives

Quarterly objectives help your board identify what’s going well and not well at the company. Are the goals realistic? Are we understaffed? Do we have the right people in the company? Does the company execute well? Is the product on track?

Some early stage companies are hesitant to create quarterly objectives. I know it can be challenging for a few reasons: (a) some entrepreneurs are worried that they will look bad if they miss their objectives and (b) startups have to be flexible at times and priorities may need to change

My response to concern (a) take the time to pick your investors wisely. The best ones will help you and your company be successful. The worst investors suffer absentee landlord syndrome which is a nightmare.

In response to 2nd concern: have an open communication style and culture amongst your board members. Don’t wait until the board meeting to propose a big change in the plan or priorities. Early stage investors and board members understand that things will change. That’s part of the deal so don’t sweat it.

3. Operating Budget

For early stage/pre revenue companies, i suggest that you operate the business assuming you are going to miss your 2010 revenue forecast entirely or significantly. You can always spend more if revenue (or user engagement) grows nicely. But cutting is painful at best.

4. Fund raising

If you need to raise additional capital in 2010, assume you will need 4-5 months to raise money. Clearly there are exceptions but for most companies that is the general rule. Get some feedback from your existing investors what they want to see to support the next round.

Notes about this post from the Tumblr community:

  1. robgo reblogged this from bijan
  2. klaatu reblogged this from spytap
  3. davidgillespie reblogged this from bijan and added:
    Filing under: “Relevant soon…”.
  4. jayneff reblogged this from mikehudack and added:
    This time of year, many venture backed startups have created or are putting together their operating plan for 2010.
  5. rebeccalando reblogged this from spytap and added:
    Pretty adaptable for any media people.
  6. viiv reblogged this from bijan
  7. spytap reblogged this from mikehudack and added:
    Reblogging as much for myself as to share w/ others.
  8. reecepacheco reblogged this from bijan and added:
    Solid, timely advice
  9. janettetoral reblogged this from bijan and added:
    this operating plan. Works great
  10. downing reblogged this from bijan
  11. mikehudack reblogged this from bijan
  12. bijan posted this