Continuing on last week’s session Customer Funding Your Startup, this week we expand our knowledge of this funding model with more entrepreneur tips. To listen to last week’s session, follow this link Customer Funding Your Startup with Verne Harnish.
In this session, we further discuss successful customer-funded startups using memberships (Costco, Amazon, Tesla, Harley Davidson), the single large customer software model, and modifying payment cycles to fund growth or improve cash flow.
In addition, our experts discuss using sourcing agents and manufacturing relationships to your advantage for favorable payment terms, using influencers to market, and lifetime membership opportunities to fund a launch. The lifetime membership option has been successfully used by software companies, gyms, and even Tivo when it was first launched. For durable goods products consider directly offering manufacturer warranties; this can provide the benefit of a direct relationship with customers as well as revenue to fund operations and additional inventory.
Listen to the full session above!