Startup Milestones

UPDATED: 4/17/19
Every entrepreneur possesses specific goals & objectives for their new business.  Most goals & objectives take multiple steps to reach or exceed the original expectation(s) of the entrepreneur.  Milestones represent the steps to achieve goals & objectives.  While many milestones may be unique to your specific startup, there are certainly a few you need to take note of since they apply to 98% of every startup.  Below is a list of the many milestones that my past startups went through.  They were recorded on  many calendars dating back to 1998 when I first started in my third car garage in Houston, TX.  Most entrepreneurs will reflect on your calendar of milestones and realize it represented your road-map to success.

To make it easy to stay organized, I have broken down the milestones into categories that match your progression as a startup.   It is important to note that the "Kick-off" category of milestones are all required.  Get them out of the way so you can focus on the meat and potatoes of really starting your business by knocking on your first door and getting the first dollar in the bank!  I threw in a few pre-qualifiers that will help determine if your business idea has legs.   

Determine if Your Idea is a Business

• Complete market validation of your idea.  Is it a problem and do you have the right solution?
• Research potential conflicts:  Intellectual property related, trademarks, current similar company names, current similar products/services.  The more research you do to understand the business landscape of your idea, you will see more confidence and passion you will have. Get on Google Patents search and USPTO.org and do every kind of search you can that relates to your business, industry, and business name/tag lines.  See who is doing what and at what capacity.  
• Complete competitive research : Determine who your competitors are – research what they are doing right, wrong, and how your idea solves an issue for the consumer.  Will you be able to capture a percentage of the current market or create one from scratch if not already present?
• Determine who & what your target market is and what it takes to acquire a new customer.  
• Start thinking of potential partners that will help your drive your vision and complement your skillset(s),  what additional team members you need to acquire (developers, sales team, engineers, etc.), and what other resources you will need to identify to obtain the multiple objectives you have defined to obtain.  

Pre-Business

• Establish company name, logo, and tagline (concise catchy 5 - 15 word sentence that sums up the company – optional)
• Write simple business plan (no more than 10 pages)
• Secure and register domain name
• Launch minimum 1-3 page website
• Secure a high-profile advisor from your industry that has demonstrated a diverse skill set and experiences
• Create and memorize initial elevator pitch
• Create a basic 10-12 slide pitch deck
• Set up basic company email/phone information
• Design & order basic business cards
• Detail how much money you need for each step of the process
• Start initial budget outline
• Begin researching raw material suppliers, partners, vendors or other supply chain resources necessary for your products or service

Pre Kick-off

• Set up a corporate bank account
• Set up accounting software (Quickbooks)
• Develop seed funding plan: personal, family, friends, banks, angels, etc
• Secure or at least identify basic service providers - lawyer, accountant, bank, insurance, etc
• Set up a Tax ID, business license and registration, legal entity, file taxes
• Business structure (LLC, corporation or a partnership, to name a few.)
• Business name
• Register your business
• Federal tax ID
• State tax ID
• Permits (more on permits here)
• License
• Necessary bank account
• Trademarks, copyrights or patents
• Have a panel of target consumers to bounce ideas off of – test your products and receive their feedback
• Prepare a media kit, including press release template

Revenue

• Define initial customer targets
• Define & test pricing structure
• Define the steps in your sales process
• Define & test revenue models
• Secure your first customer and make your first sale
• Establish and hit an aggressive revenue target for the quarter
• Double your current daily, weekly, or monthly revenue
• Find and pursue specific annual revenue goals
• Set up & actively use an Excel spreadsheet or Customer Relationship Management platform (CRM) that tracks your sales pipeline
• Double your customer/user base within first 12 months of operation
• Obtain favorable supply chain partners and negotiate good contracts

 
Traction – objective is to start getting your new company out within your targeted marketplaces and established.  Traction is not centric to just marketing but should also be focused on getting your business working toward its initial foundation.

• Create working prototype
• Win a business pitch competition
• Secure a high-profile article in a regional or national publication or news outlet
• Prep & deploy a successful marketing campaign as you enter the market
• Build & deploy a successful product/service launch as you enter the market
• Land a major partnership
• Win a startup or industry-specific achievement award
• Secure seed funding from a credible source

 
Business Development

• Define the value target clients receive from your product/service
• Identify sources of referrals
• Create 6 Week or 90 Day Milestones
• Create a project management plan for accomplishing your milestones
• Request specifically desired features/functionality for the service/product from users/ clients
• Identify a test pool of users/clients
• Spell out/architect the basic functionality required for a Minimum Viable Product (or Service)
• Create a Minimum Viable Product or Service
• Complete user testing
• Launch a Minimum Viable Product or Service
• Work with users to collect feedback and implement into product/service updates

 
Team

• Rehabilitate founder burnout to an acceptable level
• Create an organizational chart for the next 12 months of the business
• Add 1-4 co-founders/contractors to your team
• Set up and run weekly team updates or meetings with minutes
• Clarify founder roles, compensation, and responsibilities via founder agreement documents
• Resolve outstanding founder and/or partnership conflicts - there are at least 50 questions you and your partner(s) should have answered clearly with a signed partnership agreement before bringing in the first dollar.
• Clarify the cap table with founders & investors
• Secure the necessary team, tasks, and resources in order to meet deadlines, customer expectations, and your other critical milestones.

 
Resources

• Complete 12-months of profit & loss projections
• Complete 12-months of cash flow projections
• Have a mentor and/or business accountant review your projections
• Create a best & worst case funding plan
• Find and secure a part-time or full-time consulting, contract employment service, or temp service
• Pursue & secure startup/operating capital
• Define and set up a payment mechanism for clients (credit card, checks, lines of credit (don't extend lines of credit if you can avoid it until cash flow is strong)
• Identify an entrepreneur mentor that has been there and done what you want to!
• Set up an advisory council that you can meet with once a quarter to discuss the good, the bad, and the challenges you are facing.

Remember the objectives of working your milestones - keeps your priorities straight and in order, drives accomplishments and accountability, and keeps your most precious asset (time) on what's important.  Your feedback is always welcome!

Scott E McGlon is the President of McGlon Properties, LLC and the author of many blog post on MP Blog.  He has been a serial entrepreneur, entrepreneur-in-residence, investor, and president/CEO of many successful start-ups since 1998.