After talking to, and working with, several entrepreneurs that raised a Series A round in the past year, I’ve come to better understand a few of the common next steps once the money is in the bank. For most entrepreneurs, raising a Series A is a full-time job such that once it’s done they want to dive back into the business. Only now, expectations and complexity have gone up.
Here are five next steps after raising a Series A:
- Choose a System to Manage the Business – To get the business to the point that you were able to raise a Series A required a level of planning, communication, meetings, and more. Now, it’s time to choose, and institutionalize, a methodology to run the company as it scales to the next level.
- Build the Weekly Operating Metrics Spreadsheet – Everything in the business needs to be well instrumented with clear OKRs/goals and a strong weekly operating metrics spreadsheet covering every KPI in the business
- Hire an Internal Recruiter – 80 – 90% of the new capital is going to go towards hiring people. Bring on someone in-house to recruit directly as well as interface with external recruiters for the hard-to-find positions.
- Find a Venture Debt Provider – Venture debt is one of the most cost effective and least dilutive ways to grow a startup. After raising a Series A, banks like Silicon Valley Bank and Square 1 Bank will be eager to offer a line of credit or a term loan.
- Join a Peer Group Like YPO or EO – Growing a business is hard. Very hard. Join a group of like-minded leaders that are looking to learn from each other.
Raising money is simply a milestone in a long journey, not the destination itself. Follow these five next steps after raising a Series A and set the foundation to achieve the next level.
What else? What are some other next steps after raising a Series A?