Tim Milazzo is the founder of StackSource.com an online platform that provides transparency in the commercial real estate financing market and helps investors find the right lenders.
Stack Source, NYC Barclay’s TechStars 2016 finalist, from running out of cash to pivoting from SaaS to MarketPlace for Commercial Real Estate Loans.
I came across StackSource.com when Tim Milazzo posted a short article that started with “We screwed up. We ran out of money”, a post shared by a previous guest on Tribe Of Entrepreneurs, Soren Nielsen founder of Ernit.com.
The crazy ride from running out of money, not able to pay salaries, to changing the business model, shipping a marketplace business in less than 3 months.
What you will learn
- How SourceStack ran out of money with a SaaS model and pivoted by moving to a Marketplace model
- How Tim saw the opportunity in Commercial Real Estate Loans, matching patterns across industries.
- Funding, a necessary evil for SaaS. How building a SaaS model requires a lot of funding and not possible for everyone.
- Never “bank” on investments and funding you don’t already have.
- You have to be honest with your self when forecasting revenue and need for cash flow. Running out of cash is top 5 reason for business failure.
- When you have investors asking about what other investors think, you need to realize may not be entirely committed and thus you can’t “bank” on the proposed funding.
- Running out of cash doesn’t mean it’s the end but you need to great real and act very fast, be honest with the team and decide how you are going to pivot.
- The importance of mentors is priceless.
- How long it took StackSource to pivot and create a new revenue model.
- The defining moment of employees accepting no pay, some equity, finding an angel investor and finally pivoting to a marketplace and profitability.
Connect with Tim Milazzo
Web – StackSource.com
Tim on LinkedIn
Tim on Twitter