Ignite · Business foundations for founders

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From an idea to a business decision

Forty lessons across eight modules. You reason through real cases, work the numbers, and build one venture from first evidence to a Series A decision.

40lessons
8modules
60classroom hours
1venture, start to finish

The venture you build: Relay

Relay fills last-minute appointment cancellations at physical-therapy clinics by texting waitlisted patients and rebooking the slot automatically.

Maya Chen ran operations for a six-location clinic group and watched front-desk staff spend an hour a day phoning patients to fill gaps. With Daniel Okafor, an engineer who had built scheduling and messaging systems, she starts Relay in Austin, Texas. Across forty lessons you take Relay from an untested idea through customer discovery, positioning, unit economics, a pivot to multi-location groups and an AI scheduling assistant, its first financial statements, a post-money SAFE, a seed round and a Series A term sheet, a 42-location negotiation, and the final board presentation.

Each lesson ends with one venture step. Together they form a single, connected portfolio: the evidence behind the decision you defend in Lesson 40. All Relay figures are illustrative.

  1. 01Relay opportunity and uncertainty briefWrite a one-page brief: the chain of assumptions that must hold for Relay to be an opportunity, the evidence for each, the single uncertainty that most deserves the next dollar, and a time-boxed test with a decision rule set before results arrive.
  2. 02Relay in 60 seconds, with objection handlingWrite a 60-second script (about 150 spoken words) using Problem, Response, Benefit and Action; one diagnostic question; and answers to the three most likely objections: privacy, staff workload and 'we already have a waitlist'.
  3. 03Maya and Daniel's founder working agreementWrite a one-page founder working agreement: decision rights by decision type, the disagreement and escalation rule, how the build-AI-now question will be decided (evidence, deadline, review trigger), and how missed commitments are raised.
  4. 04Front-desk empathy plan and interview guideProduce an empathy plan and an interview guide. The plan covers who to observe and interview, where and when, and which extreme users to include. The guide has 8–10 episode-based questions. Add a two-column evidence log with three sample entries that keep observation apart from interpretation.
  5. 05Reframe the problem and design the Wizard-of-Oz pilotWrite two problem frames, "reminders" and "matching," as user–need–insight statements. Then specify a 4-week Wizard-of-Oz pilot: what Maya does by hand, the single learning metric and its denominator, the prediction made in advance, and the results that would mean continue, revise or stop.
  6. 06three Relay concepts from templatesProduce a template idea sheet for Relay: one concept per template (five), each visualized concretely. Select three, and for each state the beneficiary, the benefit hypothesis, the new cost or risk, and one cheap test Maya can run in the existing pilot.
  7. 07choose Relay's first target segmentWrite a one-page segment-choice memo: a market-structure matrix (segment importance and alternative performance on 5 to 7 attributes), the chosen first target with fit, reach and economics, the segments deliberately excluded, and the evidence that would make you revisit the choice.
  8. 08Relay's positioning statement and evidence checklistWrite Relay's internal positioning statement (who, need, frame, benefit, difference), list its points of parity and difference against the phone waitlist and ClinicOS, and attach an evidence checklist plus a one-page unaided-interpretation test script.
  9. 09Relay's route to market and EVC argumentProduce a route-to-market map (participants, essential work, each one's gain and risk), an EVC calculation against the correct baseline, and a recommendation on which route to test first, with the metric that would change it.
  10. 10Relay's business-model map and unit economicsProduce a one-page business-model map (value creation, profit model, logic) and a unit-economics table: contribution per clinic-month, customer lifetime, LTV, LTV/CAC and CAC payback for each channel, plus the clinic count needed to cover FY1 operating expenses. Name the most fragile assumption and how to test it.
  11. 11Map Relay's network and plan a new cityProduce a one-page network-effect map: who joins, whose value rises, at what level (clinic, group, city), what weakens the effect. Then write a Houston launch plan that solves the chicken-and-egg problem and names the metric that would overturn it.
  12. 12Prove Relay causes the fillsWrite a one-page causal-test note. Include the counterfactual, the unit of randomization, the primary metric (net incremental visits), the guardrail metrics, how front desk incentives will be aligned, and the result that would make you change the sales pitch.
  13. 13Model the ClinicOS gameDraw the sequential game (Relay: join or stay independent; ClinicOS: bundle or not), with illustrative payoffs. Solve it by backward induction. Test whether the bundling threat is credible. Then name two commitments that protect Relay from hold-up after it joins.
  14. 14What is defensible once the AI layer is commoditized?Build an advantage scorecard: for each candidate, state scope (against which rival), mechanism (willingness to pay, cost, access), duration and the main threat. Then write a one-paragraph pricing memo answering the $299 request.
  15. 15The pivot to multi-location groups and Relay SchedulerWrite a before/after strategy map (customer, offer, activities, economics, organization), a decision rule that says when to commit, stage or stop, and an alignment plan naming three organizational contradictions and how to fix them.
  16. 16Read Relay's FY1 statementsProduce an annotated statement map: Relay's income statement, cash-flow statement and year-end balance sheet, each annotated with the question it answers, plus three economically important facts the statements omit or understate. Use them to answer the investor in under 150 words.
  17. 17Record the $4,070 annual prepaymentProduce a transaction table (assets = liabilities + equity) for both clinics from October 1 to December 31, including month-end entries, then mini statements and a one-line reconciliation of Q4 profit to Q4 cash.
  18. 18Diagnose Relay's FY1 with ratiosProduce a ratio sheet for Relay's FY1: common-size income statement, gross margin, burn and runway, deferred revenue relative to revenue, CAC payback on both the quoted and the fully loaded CAC, and burn multiple. For each ratio, write one operating explanation and the evidence that would test it.
  19. 19Build Relay's driver-based operating modelBuild a monthly model (24 months) with separate schedules for headcount, clinic cohorts (opening, churned, new, closing), revenue, cost of revenue, operating expenses and cash. Every total must trace to a named driver. Reproduce months 1 to 4 and state your timing conventions.
  20. 20Relay scenarios, runway and the seed amountProduce a scenario sheet: monthly cash for each case, runway with and without the seed, clinics and ARR after 14 months, the cash need to reach a Series A with a 6-month buffer, and one downside trigger with the action it sets off.
  21. 21NPV of the second EHR integrationWrite an NPV decision note: the cash-flow timeline, the discounted values at 20%, the NPV and IRR, the break-even annual gross profit, and a sensitivity table showing which assumptions could reverse the decision.
  22. 22Choose and defend Relay's required returnWrite a one-page rate rationale: classify Relay's risks, say which belong in the cash flows and which in the rate, state the rate and the cash-flow case it applies to, and show why the decision flips between 20% and 30%.
  23. 23Pilot the second EHR before building itDraw the commit-now versus pilot-first decision tree at 20% and 30%. State the fill-rate threshold that triggers the full build, the most Relay should pay for the pilot, and one fact that would make committing now the better choice.
  24. 24Relay's founder split, vesting and Priya's grantWrite a one-page founder allocation brief: the rationale for 52/48, the vesting schedule with numbers, what happens if either founder leaves at month 11 or month 18, the 83(b) decision, and Priya's grant expressed as a percentage after the seed and Series A.
  25. 25Relay's formation and governance briefProduce a two-part brief: (1) a governance map for pre-seed and post-seed, showing who holds votes, board seats and signing authority, and (2) ten specific questions for counsel covering entity choice, IP assignment, prior-employer agreements, Texas registration, franchise tax and investor approval rights.
  26. 26Relay's IP asset-and-protection mapProduce a one-page IP map for Relay: each asset, the tool that fits it, one strategic benefit, one limitation, and the specific question for counsel. End with a ranked list of three actions for the next 60 days and a recommendation on the patent filing.
  27. 27Relay's chain-of-rights and license reviewBuild Relay's chain-of-rights table (contribution, creator, governing document, rights Relay holds, rights its customer promises require, gap) and a prioritized resolution plan of five items with owner and deadline for the data room.
  28. 28Relay's PHI data map and HIPAA review briefProduce a data map covering collect, use, store, share and retain/delete for each PHI element, with the minimum needed, recipients and vendors, retention period and BAA status. Add a one-page brief: Relay's HIPAA role, three design changes, vendor requirements and the incident plan.
  29. 29Choose Relay's pre-seed investorsWrite an investor-fit brief: the recommended syndicate with dollar amounts; a one-line sketch of each investor's economics at a $600M exit; three diligence questions per investor; and the evidence that would change the recommendation.
  30. 30Build Relay's seed cap tableProduce a reconciled post-seed cap table (shares, percentage, value at the seed price) for every holder, with the pool equation written out, the seed price, the new pool shares, and the effective pre-money valuation for existing holders.
  31. 31Price Relay's Series A with the VC methodWrite the VC-method calculation from both sides, a sensitivity table (exit value x later dilution), the Series A cap table under $60M and $48M post-money, and a recommended negotiating position with the arguments for it.
  32. 32Relay's three-exit waterfallA waterfall table for $40M, $150M and $600M showing each class's conversion decision and payout, the two conversion crossovers, a check that each decision is stable, and a list of the assumptions the simplified model omits.
  33. 33Relay's post-money SAFE from issue to conversionA conversion schedule: the SAFE's ownership, shares and price derived from the cap definition; the seed cap table after conversion; and a side-by-side comparison with a pre-money SAFE and a convertible note on the same $1.5M (illustrative terms).
  34. 34Relay's Series A funding plan and data roomA one-page funding plan (amount, milestone, delay case, downside actions) and a prioritized Series A data-room index that names, for each decisive claim, the evidence and its owner, including HIPAA and AI-vendor items.
  35. 35Diagnose the PHI near-missWrite a one-page culture diagnosis: classify each failure by mechanism (knowledge, friction, meaning, expectations, accountability), state whether 'no real PHI outside production' is a routine or a norm today, propose an intervention hypothesis, and name evidence that would distinguish durable change from a monitoring effect.
  36. 36Align Relay's management levers at 22 peopleBuild a lever map: two concrete target behaviors tied to Relay's strategy, then for each lever (leadership, selection, onboarding, organization, rewards, peer process) the current practice, the contradiction, the change, and the evidence you will inspect in 90 days. Name one risk the system creates.
  37. 37Prepare the Northpoint PT negotiationWrite a one-page preparation brief: Relay's BATNA in 3-year gross-profit dollars, its resistance point per location per month, a target and opening offer with a rationale, your best estimate of Northpoint's BATNA and limit, the implied ZOPA, and three questions to ask Northpoint.
  38. 38Build and compare Northpoint packagesClassify each issue, compute Relay's and Northpoint's values for two packages (A: a $295 compromise with SLA and termination for convenience; B: a value-creating package of your design), find the price at which Northpoint is indifferent between them, and choose a channel plan for presenting the packages.
  39. 39The Series A narrative and evidence portfolioProduce a 10-slide Series A narrative that opens with the ask, plus an evidence portfolio: an index mapping every material claim to its lesson artifact, its evidence type (observed, calculated, assumed) and its open risk, and a contradiction log resolving at least four inconsistencies.
  40. 40The partner meeting and the term-sheet decisionDeliver a 10-minute presentation and 15 minutes of Q&A. Keep a question log (question, direct answer, evidence, gap). Submit a one-page decision memo: accept, negotiate or bridge, with the numbers, the owner, the conditions and the evidence that would reverse the decision.

Lessons

Module 01

Business judgment & communication

Build the habits needed to reason, explain and work with others.

You will makeA decision journal, a short explanation and a working agreement.

Module 02

Customers, innovation & market focus

Move from observed needs to a focused market proposition.

You will makeAn evidence log, problem frame, prototype, segment choice, positioning and route to market.

Module 03

Business models, economics & strategy

Explain how a business creates value, captures it and sustains an advantage.

You will makeA business-model map, market/game models and an advantage-and-pivot memo.

Module 04

Accounting & financial reasoning

Connect operating choices to statements, cash, value and risk.

You will makeA linked financial analysis, operating forecast, valuation and staged-investment decision.

Module 05

Founders, governance & business assets

Understand the people, ownership and risk foundations of a company.

You will makeA founder discussion brief, governance questions, IP map and privacy data map.

Module 06

Funding & investor logic

Connect capital needs, ownership consequences and investor incentives.

You will makeA capital strategy, cap table, financing comparison and milestone-based funding plan.

Module 07

Organizational culture

Translate strategic intent into everyday behavior and management systems.

You will makeA culture diagnosis and a consistent set of management levers.

Module 08

Negotiation, persuasion & integration

Create and claim value, then defend an integrated business decision.

You will makeA negotiation brief, package comparison and individual decision portfolio.

Two editions

Open edition

Every lesson, explanation, worked example, venture step and check, written for this course. Source pages are summarized as insights with their citations.

Library edition

Everything in the open edition, plus the original source pages beside their notes, every page used in each lesson, and the full source documents.

Appendix: Source library

Feinberg

Soule

Levav

Lattin

Mendelson

Kasznik

Beyer

Strebulaev

Reiss

Richardson

Carroll

Abrahams

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