A note from Daniel

new-venture success most often arrives in the shape of Plan B or Plan Z, not the Plan A that has been so lovingly articulated in the business plan.

Daniel The Customer-Funded Business, page -5 · July 18, 2023 Save to shelf

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Daniel p. 30

venture capitalist Bill Egan famously remarked, "You may have capital and a talented management team, but if you are fundamentally in a lousy business, you won't get the kind of results you would in a good business. All businesses aren't created equal.”

Daniel Jul 21, 2023

Daniel p. 30

by waiting to raise capital until proof points had been achieved--the magic of customer traction--raising capital, and more of it, became dramatically easier.

Daniel Jul 21, 2023

Daniel p. 29

So if you need cash for your next venture,I suggest you spend your time on your customers and your business, rather than on raising capital. Once you get customer traction, more capital is likely to follow, if you want it and need it.

Daniel Jul 21, 2023

Daniel p. 24

Drawbacks continued: 3. Risk: The further you progress in developing your business, the lower the risk, as early uncertainties become more certain. Less risk translates into a higher valuation and a higher stake for the founding team. 4. Baggage: The terms and conditions attached to institutional capital are (for good reason) onerous, as investors seek to protect themselves from downside risk. The further along the path, the less onerous the baggage. 3. Difficulty: raising capital, even in the best of times for the best aventures, is a difficult task! Why make it even harder by trying to do it too early?

Daniel Jul 20, 2023

Daniel p. 24

there are significant drawbacks to raising capital too early: 1. A distraction: Raising capital often requires full-time concentration, but so does starting an entrepreneurial business. One or the other will suffer when investment capital is sought. Why not raise money later when the business is less fragile? 2. Pitching vs. proving merit: Nascent entrepreneurial ideas, however promising, always raise numerous questions. Proving the merit of your idea (to yourself and to others), based on accumulated evidence and customer traction, is much more convincing than using your own wisdom and charm to pitch its merit.

Daniel Jul 20, 2023

Adam p. -5

new-venture success most often arrives in the shape of Plan B or Plan Z, not the Plan A that has been so lovingly articulated in the business plan.

Adam Jul 19, 2023

More from Daniel

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Ultra Successful p. 61

when you study people who've created extraordinary lives, you realize they didn't follow templates for career paths and lifestyles; they designed their own blueprint.

Daniel Aug 12, 2026

Ultra Successful p. 60

The False Constraints That Limit Your Potential: - The Size of Your Opportunities I see that the most successful people swing big, even when they have no business taking those swings, and they often land The difference between you and them is your "willingness" to believe you belong in bigger conversations.

Daniel Aug 12, 2026

Ultra Successful p. 60

The False Constraints That Limit Your Potential: - How Quickly You Can Scale Whether it's your business or your career, there are unspoken timelines that people accept as gospel.They are all untrue: "You can only really grow at 10% a year." "You need to pay your dues for a decade before getting promoted." These artificial limits keep people moving at a crawl when they could be sprinting or pushing for more. The most successful people I know refuse to accept conventional wisdom about timelines, and oddly enough, they break them all the time.

Daniel Aug 12, 2026

Atomic Habits 0

• Being motivated and curious counts for more than being smart because it leads to action. • It is desire, not intelligence, that prompts behavior.

Daniel Aug 12, 2026

Ultra Successful p. 54

Our limits lie in our thinking. You need to root them out and rework them. A lack of self-belief will fundamentally change how you direct your actions...across all facets of your life. The person who thinks they "might not be capable" of being the next CTO will fill themselves with anxiety and be less likely to take any chances, even if they get there. Chances that might showcase their talents and make them outstanding in their work.

Daniel Aug 11, 2026

Ultra Successful p. 54

Keeping the Fire, Slaying the Dragon (Part II) - People won't promote or fund me vs I AM JUST TALKING TO THE WRONG PEOPLE - I'm not built like X person vs I CAN LEVERAGE WHAT / KNOW TO MAKE THIS HAPPEN - My company isn't built for distance vs I CAN ARCHITECT THIS TO GO WHERE I WANT - These might not work vs I WILL PUT THIS INTO THE WORLD AND SEE WHAT COMES

Daniel Aug 11, 2026

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