It’s also when many of us quit accusing our mother-in-laws of being a member of the local Coven since they may be the only option.Single round funded businesses also turn to partners to support the business.
You don’t cut corners on infrastructure if you know that it has to be upgraded within the first year or two to support planned capacity needs.
Since expected growth is still based on a more linear model, labor resources that are available in startup may not be available when deployments start cranking up without adding additional staff.
Developing a WISP business plan that will only have to deal with a single round of funding but has to take into account investors, ROI, and payback schedules is not much different than a sole proprietorship from a technical point of view.
There is still the assumption of linear growth with more exit strategies but that’s on the financial side.
Hopefully the money is made available as a loan, and doesn’t cost additional equity.
However, if the business grows more slowly than expected and additional capital is needed, someone may end up owning more of the company.The goal is that the effort pays off in reduced capital expenditures, greater competitive advantage, and hopefully a better financial business model.One of the problems with being an engineer though is that we rarely assume we are wrong unless someone proves that we are.For example, a First Round or angel investor wants to control as much equity as possible for as little money as possible.Even though that sounds pretty obvious, it dictates a different technology design.The problem occurs if growth exceeds expectations and the needed capital wasn’t included in the original funding model.Single owner businesses typically just hunker down, put in some extra hours, maybe apply for some credit with a bank, or just simply dig into their pockets further if possible.Most WISPs are only worth about 1-2 times annual revenues.It’s a highly specific business with a limited number of potential buyers which makes it a buyer’s market.Many owners look at it as a small business that should eventually reach a comfortable profitability level.If the business can be sold when they are ready to get out, that’s even better.