Gregory Shepard walks through the North Star phase of the BOSS startup framework: defining what you do, why you do it, and who you serve. You'll map your ideal customer, estimate acquisition value, identify key value drivers, and set a timing horizon that shapes your fundraising strategy.
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Defining your company's North Star is the first of the 5 phases of BOSS. This is the most important phase in BOSS as it aligns your company towards your end goal, including your potential acquirers and stakeholders, and it sets the stage for your company's strategy. The North Star defines your what— what is your company and product description, feature, and benefit— your why— Why is your company or product needed? Problem, solution, and impact. Your who. 42% of companies said they failed because there was no market need for their product. You need to determine who will buy your products. Your ideal customer profile. What are their pain points? What's their motivation? What is their demographic? What's their budget? And their user stories. What do they want and why do they want it? Next, you need to think about who will buy your company. 57% of startups view acquisition as the most realistic long-term goal for their companies, so you need to determine your ideal buyer profile. They need the same ICP. You need to look at their acquisition behavior. What is their pain point? What are their motivations? And again, create their user stories. Next, determine your how much. How much will your ideal buyer acquire your company for? What multiple are you selling on? Top or bottom line revenue? What are your most important value drivers? Growth, margin, retention, or attachment rate? And why would they buy you? To save money? Or to make money. And finally, your when. When will your company be bought? What is your time horizon? If you don't strive for your when, you'll need more money, which leads to higher stock dilution. The more money you raise, the more money others get when you are acquired. All of these components make up the North Star to ensure you start with your desired business outcome and plan for that result. Once your North Star is completed, you'll be able to clearly communicate where you are heading and how you will get there. This is your North Star. To learn more about BOSS and how you can scale your business, please visit www.gregoryshepard.com and subscribe.
