If you are a startup, that has zero revenue, this short video is a must watch. You are termed in the industry as “Zero-to-One” a company that is going to go from $0 revenue to $1 (pre-revenue to post-revenue). There is a wide difference between the two and why banks prefer “One” rather than “Zero” companies.
Hello, my name is Faisal Khan. I am a banking and a payment consultant and today I want to talk to you regarding when you go to a bank or a financial institution, and you have a very good plan but they deny you banking. They deny you a chance to meet up. They don’t want to hear you. They don’t want to talk to you.
And you’re wondering why. What did you do wrong that they don’t want to talk to you?
Well the problem is zero to one. A bank is a solution provider and they will see many many many applications come their way, prospects come their way – they come through people like me who are brokers, they come through their own sales team. They come through the organic way of the Google and the Internet searches, they’ll come through their website. And all these opportunities are correlated, they’re looked at, they are classified and then they are prioritized. Zero to one companies are given zero preference – the lowest.
What does zero to one mean? Zero means zero revenue and they want to go to one revenue make one dollar a day. This company has not even made a dollar. And when you are a zero to one company or a company going from zero to one that means the bank or the financial institution or the
The bank loses out, not
What do you do if you are pre-revenue… pre-revenue, if you are a zero to one company? Then your best thing is to look at partners who will accept and your second recommendation that I can give to you is go find someone in the industry who can be a bridge or a gateway so that all the lack of knowledge that you may have in as far as the nomenclature, taxonomy, contacts, procedures, flows, operational manuals etc. are all taken care of by this gateway person that you may hire. He or she can speed up things and then let the bank know that you know yes and to the bank you would look like someone will really knows their stuff and they might just classify you as someone that is on the borderline from 0 to 1 and would classify you as a one company and think they want to go from one to two.
So that’s my recommendation for you 0 to 1 companies are almost looked down upon because of the fact that they have no revenue, try to be post revenue, that’s the key over here.
If you have any more questions or comments feel free to ask in the comments section below. I’ll be happy to answer, Till next time, have a good one.
This page was last updated on December 10, 2019.