Archive for category Experience
Part 3 of 5: Tech Wildcatters’ Suggestions for the Successful Fundraiser
Posted by Steve in Experience, Miscellaneous on October 21, 2009
The last two days, I introduced Tech Wildcatter micro-seed project and discussed their program for entrepreneurs. One of the areas of conversation focused around what made entrepreneurs successful at fundraising. This will give you a little insight into not only how to get their attention but also how to be a successful business person.
Gabriella Draney and Jon Feld started Tech Wildcatters. On Sept 3, I had the great opportunity to sit down with Gabriella and talk about her new venture. I organized her responses into each of these general question categories.
What is the best way to stand out from the rest of the pack?
This can also be looked at, “What is the biggest mistake entrepreneurs do?” Our discussion actually started on this point first and Gabrielle was quick to respond, “Lack of follow up.” One would think that at the funding stage the most important action would be to follow up with potential investors, contacts to investors, or with customers. Unfortunately, many entrepreneurs do not do this.
The best way to be “written off” is to not do follow-up. Respond to emails. Call back if someone leaves voice mail. If you do not have the answers yet, at least call back to let them know you received their message and when you can deliver the answers.
What are some of the other mistakes that entrepreneurs do when they look for money?
Gabrielle sees a lot of mistakes. In addition to not following up with phone calls and emails she listed off the following. Start-ups are:
- Not thinking about customers and revenue.
- Focused too much on raising money and not enough on running the company.
- Not being aware of what investors do, not looking at their website, and generally being unprepared for the interview process.
- Not being able to strategize. If you have been turned down by too many investors rethink your strategy. If you do not know why you are not getting any money, then get help.
Two ideas stand out. The first is that although these points seem like common sense, there are a lot of people are obviously not doing it. The other is that you need to run your business like your life depends on it. Balance between making money and raising money. Stay focused and in contact with people. Ultimately, standing out is not as much about doing something new and different but more like doing what the successful businesses do.
Tomorrow, we look at what Startups Tech Wildcatters will pursue.
Convey that you have Experience
Posted by Steve in Experience, Leadership on August 13, 2009
This is one of the hardest things to do: how do you convey experience if you do not have the ability to convey that experience?
If you feel you already have this, then you can stop reading right now.
There are people that seem to naturally fill the role of leader, whether its in politics or businesses. They display the aura of direction, knowledge, and authority.
I do not believe they were born with it; rather, they learned it over time. If you do not have this yet, then you can get it.
There are two ways to do this. First, pick one or two mentors that you feel display their experience. Determine the attributes they have and emulate them.
Second, learn about those attributes and how you can get them. Read self-help books, take classes, discuss with associates…continuously strive to learn to be an effective experienced person (not necessarily a leader).
When you get these attributes, one thing you will learn is that leaders continue to learn. They have to continue to hone their skills—consciously think about them and work on them.
The Right Question on Experience, Number 2 of 2
Posted by Steve in Experience on August 12, 2009
Earlier, I wrote about what might be the right question to ask on experience. There are Two and this is the second: Does the team have drive (passion with results), ambition, zrizus, and relevant experience?
The first question was on the hard aspects: do they have the knowledge and skills?
This question asks about the soft aspects of experience: can they deal with the challenge facing them, and do they have proof of that!
Will they give up (or will others give up around them)? A lot of people try to start a business when they lose their job. Those that fail return to work for someone else. There are a variety of reasons for the failure. A number of people just do not want to continue because it was too hard. Some people could not convince others to commit like themselves; and then gave up due to lack of support.
An experienced start-up person knows there will be problems that seem impossible, moments that feel like make-it or break-it, and others that will crack and leave. Furthermore, an experienced start-up person will know when it is time to change course, or even quit while they are still ahead.
However, ultimately, the key factor is how they motivate others with their own drive, ambition, willingness to take action (aka zrizus-more on this later). This can be called leadership, but it is best when it is based on history. The investor wants to understand that history.
Has this person been in the business trenches? Did they fail, and learn? Did the win, and also learn? Can they win again?
Once again, like with question 1 on the hard knowledge and skills, it is the entrepreneur’s job to convey the message that they have this experience. The next question is how to do it.
The Right Question on Experience, number 1 of 2
Posted by Steve in Experience on August 11, 2009
Yesterday, I wrote about what might be the right question to ask on experience. There are Two
The first question is: Are we working with savvy professionals or beginners? (Do they have startup experience?)
This question can be broken down further:
Do they understand the commitments needed to make a startup work and are willing to do it?
Do they understand the unique challenges facing a startup and how to overcome them?
Can they make decisions in an expeditious manner and based on facts and not whims?
How do they solve problems, both engineering and with people?
Do they have business common sense?
Have they worked on a startup before, or have the personality to listen (and learn) how to do it from an expert?
That is just one part of the experience equation the investor evaluates. The entrepreneur has to present their case with actions, conduct, and personality to get the investor to buy into the fact that they are savvy.
Experience is Not Easy to Gauge
Posted by Steve in Experience on August 10, 2009
The hardest attribute for investors to accurately gauge is experience. Experience is more of a soft skill than a list of accomplishments. Experience is not meant to be a list of dry facts, but an indicator of future behavior.
A resume will list the history and accomplishments but it does not necessarily list what the person learned and how they will react to problems. A jack-of -all-trades brings very different skills than someone who spent the last twenty years focused in the primary field of the company. Who is better if you have to choose between them?
What about someone who spent ten years at a Fortune 500 company who has many contacts and international experience versus someone who spent the last 10 years working at small startups in the same area? Both are successful. Who do you pick?
The easy answer is both. What if there are two companies, equally suited for investment; and these people are at these different companies? You can only invest in one. The problem just became very difficult.
The problem is therefore to first understand the question and then to understand what would properly answer this question: What is important about experience and why should we care?
More on this tomorrow…