Startups that have stayed at the startup stage since 3, 5 or even 7 years, qualify as never-ending startups. They usually got seed money and were promising hockey stick figures that never materialized. They either never delivered a product or failed to get market traction. Initial investors are disappointed and do not want to put more money down unless new investors sign up too. New potential investors blame first series investors and the board for not having reacted more rapidly and offer terms at nobody-can-believe-it low valuation or simply wait for the situation to get worst. Finally, founders are discouraged, employee productivity is low and everybody seems to be waiting for a miracle.

To divest or not to divest
If there is no money left and no sign that some will come soon, it may be time to stop operations and try to divest the assets, which I will not cover here. If there is money left and a desire amongst shareholders to change the situation, here are some suggestions:

Let it all out!
Please stop repeating the same old stories that got you the seed money. All the shareholders (and usually all the employees) know by now that it did not work and all the excuses in the world will not fix the situation. Just accept what has happened and do not blame anyone. Now, document what did work, what did not work, and what the main issues and challenges are today. Talk with employees to get their take on it: you will not get anywhere without them.

Build and share a new plan
At a senior level, define 3 or 4 simple milestones that can be reached between 30 to 60 days and that are critical to demonstrate you have a real business opportunity. Develop a plan to achieve them and define the metrics you will use to measure results. Share the plan and get buy-in from the boardroom to the trenches. Make sure everybody is strictly working on this plan by implementing a company-wide project management system. Finally, as you implement it, share this plan with new potential investors, especially the ones that refused to invest.

Spend money… wisely
Please stop saving money. This your last chance. Increase spending on the right things to make sure you can succeed. Get assistance in areas where you have weaknesses or know you failed. At the same time, make sure you cut all expenses (and unfortunately employees) that are not required to achieve your plan.

Learn to say no and react quickly
You cannot continue to look at all the opportunities that come your way. Say no to anything not related to the new plan. And, tell all employees to say no to anything not related to the new plan. Don’t think too much and for too long. In the short period of time you have, take decisions and execute. If you are wrong, react quickly, readjust and execute again. Let everybody feel a sense of urgency.

Share the news
If you succeed, you now have a great story to tell to current and new investors. The past few months of focus and results should have changed their perception of the situation and hopefully, they will support you with a new injection of cash. If you failed (and I hope not), you are back to the divesting decision.

It’s not uncommon for small companies, or even large ones, to stagnate and lose focus. Sometimes all it takes is looking at the business honestly, understanding the market requirements for a product and then creating a plan that goes after the opportunity. Don’t underestimate the power of getting all stakeholders and employees behind it as it is the key to making it work. Without their support, nothing happens. Even startups have to grow up one day too… and create their own miracles.