I really enjoy the show Shark Tank
One mistake I see some of the entrepreneurs make is putting a value on the work they have already put into the startup.
The amount of work you have put in is irrelevant in terms of how valuable the startup is.
Irrelevant
If you were lost in the woods for 2 days, you wouldn’t refuse and say your value is high because you have already spent 2 days trying to find out where you are.
Regardless of how much work you have put in, you need to evaluate:
- Where you are at (current state)
- Where you want to be (future state)
- What is the gap between the current state and the future state
How can someone help you close the gap and in closing the gap what is the increase in value of the startup?