Assaf Ben-DavidMentor, Entrepreneur, Lawyer, Public Speaker
Bio

Experienced Startup Mentor, Commercial lawyer, Lecturer & public speaker. I've helped over 300 entrepreneurs & 100+ startups. Taught tens of courses and given hundreds of talks. Founder of the Legal Clinic for Startups.



Recent Answers


Hi,
First of all, well done for creating the MVP - this is often not an easy task.
Regarding the valuation, the real answer (that not many people are willing to say), is this: you go outside, raise your thump towards the sky, imagine a nice number, and that's the valuation.
Seriously, there is no "official" accounting method to evaluate a startup that is not already selling, and even then the sales don't necessarily indicate the value of the company.
In any event, some of the below are good indicators of value:
1. Do you have a patent?
2. Have you already developed the technology? Is it working?
3. Do you have sales or traction?
4. How much is it costing you per sale/signup/download versus how much are you making (going to make) from each of these users?
5. How long has the team been together? If you're offering a technological solution, is the CTO a member of the team, or an external company?
6. Are there any similar companies providing similar services? If so, check how much money these companies have raised so far, or research there sales/results so far (I am happy to teach you how to do so - almost all the information is available online).
7. If the potential investor has made investments in the past, check how much he/she invested each time?
8. Do your research on the market and potential.
You then take all the above, and reach the value of the company, based on which you are asking the investment for.
I've successfully helped over 300 entrepreneurs, and I'd be happy to help you if you need. I would need more details about the company, industry and team to give you an estimated evaluation.
Good luck


Hi
Unlike what most people think, pricing is supposed to be based on value (not production costs). The value perceived by your customers (mainly), and the value that you give to your products/services and brand.
As with all new products or services, I suggest that you use AB testing (different sales pages with different prices) to see which price fits best.
One last thing to remember: even if you can charge more, doesn’t mean you should (that said, if you offer a quality product, don’t undersell it).
I’ve successfully helped over 300 entrepreneurs and would be happy to help you as well. Let me know if you need anything.


Hi Awan
I founded and managed (for 5 years) a legal and business entrepreneurship program at a leading university. I also created a unique course on entrepreneurship (how to set up a startup from zero). I less focus on internet marketing, but cover all th rest.
Let me know if you want to talk.
Good luck


Based on your results from your validation (if you did the validation right).
You're welcome to read my elaborate explanations on how to do validation.
I'm happy to help if you need.
Good luck


It depends on the exhibitions.
So exhibition organizers only you let you use their stands/stalls with limited options for changes (less common), some refer you to a list of 'approved' stand installers/designers (fairly common), and others let you do whatever you want so long as you follow a few basic safety guidelines (and stay within your stand limits). For the last option, there is a wide variety of service providers.
I am in touch with an international stand creator - they create very unique stands, but they aren't cheap. If you have a high enough budget and are in the US or Europe, I could connect you.
Good luck


It depends on the exhibitions.
So exhibition organizers only you let you use their stands/stalls with limited options for changes (less common), some refer you to a list of 'approved' stand installers/designers (fairly common), and others let you do whatever you want so long as you follow a few basic safety guidelines (and stay within your stand limits). For the last option, there is a wide variety of service providers.
I am in touch with an international stand creator - they create very unique stands, but they aren't cheap. If you have a high enough budget and are in the US or Europe, I could connect you.
Good luck


Hi
The best method in which to learn how to manage your relationship with the distributors, would be to read as many (at least 2-3) distributor agreements - as this will give you a good understanding of what to avoid/focus on/address when dealing with them. You can find some free examples online.
I just recently finished drafting such an agreement for one of my clients and would be happy to give you some pointers if needed.
Good luck


Hi,
Based on the intellectual way you worded your question, it seems like you already know the answer :-)
Although a team is important, it isn't everything, and if you prove that your venture is doing well/has potential (traction, profits, conversion etc...), you shouldn't have any problems.

Co-founders are like romantic relationship - keep looking (without it being an issue), eventually you'll find the right one.
To improve your chances, try focus on forums/meetups and the various other platforms which focus specifically on your field and/or the startup lifestyle, as this will increase the chances of success.
I've successfully helped over 300 entrepreneurs and would be happy to help you if you need any assistance.
Good luck


Hi
I have personally used Wordpress for numerous projects - both simple and complicated, and in all cases the websites have worked fine and have been easy to manage.
A good place to hire someone to build the website for you at reasonable prices is on Fiverr. Just be sure that you have a very clear specification document (description of the project) and that you clearly define expectations with the programmer.
If it’s a project that costs more than $3,000, and if you’re using someone in the same country as you are located, then I would consider drafting a services agreement.
I can help you with any and all of the above if needed.
Good luck


Hi
You’re correct: it is indeed very difficult to create an entirely new service or product, as almost ‘everything’ has already been invented.
That said, 2 points to consider:
1. Sometimes small changes to existing services or products can make a huge difference (and fulfill a different need for potential consumers). For example, Airbnb (hotels existed, rental units existed... - they just added a twist).
2. Existing competition isn’t necessary a bad thing. If you are selling an entirely new concept, you need to ‘Educate’ your potential costumers - this is both extremely expensive and often very difficult (and timely) to do. Many companies have failed just because they were before their time, only to see other companies succeed with similar products a few years later.
The bottom line is this: although it’s important to research your competitors and to make sure that the market isn’t saturated, the only sensible way to know if there is (enough) need, is to validate your idea (see my past answers for an elaborate explanation on how to do this).
I’ve successfully helped over 300 entrepreneurs and I’d be happy to help you if needed.
Good luck


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