Customers today use an average of six channels during the buying process, and the number of channels available to them is only increasing. Competition for those customers has also increased as margins have tightened.
George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures, a startup consulting and financial advisory firm based in Chicago.
This really is not a simple question to answer. There are so many nuances that go into assessing the right answer:
What is going on with the economy?
How liquid is the fundraising climate?
Are you B2B or B2C?
Are you the first mover?
How defensible is your business, with patents, product complexity or otherwise?
What are your competitors doing?
All over Silicon Valley, venture capitalists are asking entrepreneurs “How scalable is your business model?” What they really mean is, “Can you grow without having to hire people?”