Valley of Death

The so-called ‘Valley of Death’ refers to the period encountered by many start-ups when facing a period of negative cash flow – the business is spending money on developing its product (or service) but is not yet in a position to generate revenue from paying customers. Not all ventures will face the valley of death but, in a highly-readable and useful article for, Martin Zwilling offers ten tips on surviving the valley of death:

Accumulate some resources before you start.

Keep your day job until revenue starts to flow.

Solicit funds from friends and family.

Use crowd funding.

Apply for contests and business grants.

Get a loan or line-of-credit.

Join a startup incubator.

Barter your services for their services.

Joint venture with distributor or beneficiary.

Commit to a major customer.

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