In this article, we explore the essence of milestones, focusing on the ‘M’ in the POEM framework. Developed by Tomi Davies, the framework offers strategic guidance for techpreneurs, investors, and innovation hubs.
The Essence of Milestones
Milestones symbolize the journey toward realizing a startup’s vision. Investors and innovation hubs actively seek to be part of this journey, providing crucial support in various forms.
Navigating Startup Stages
The startup journey unfolds through distinct stages, each demanding specific attention and resources:
Stage 1: Pre-Seed/Incubation
Idea conception, relying on personal funds and support from friends and family.
Goal: Creating a Minimum Viable Product (MVP).
Stage 2: Seed
Legal establishment of the business with a focus on avoiding excessive spending.
Funding from founders, friends, angel investors, and early-stage VCs.
Stage 3: Growth
Increased revenues and customer base, requiring a formal business operation.
Funding from angels and VC series seed.
Stage 4: Scale
Maturation into a thriving company with expansion into new markets.
Funding for scalability from various sources.
Stage 5: Exit
Decision time: cash out or shut down.
Challenges include realistic valuation and dealing with business closure.
Utilizing POEM for Progress
The POEM framework is a systematic tool for organizing a startup’s business, providing a holistic snapshot of its commercial health. Tomi Davies emphasizes the importance of tracking achievements and challenges over a two-year horizon.
