Are you looking for a way to create a successful business? Why not take some tips from the people who fund business ventures as their job? Here is some advice on how to be a successful entrepreneur from the people you may be asking money from to fund your venture!
Failure is a Lesson
The first thing you want to think about isn’t failure. The truth is, most successful entrepreneurs fail a few times before they get it right. What is essential is that you have to learn from your mistakes and see them as a way to get better. Letting a failure keep you down will keep you down for good. When you fail, get up, dust yourself off and head back into it. Turn that failure into a lesson on how not to succeed.
Learn the Business of Venture Capitalists
If you need money to start your business, then you are probably going to have to be backed by a venture capitalist. This means that to get the most out of the relationship you need to understand where they are coming from and what their business model looks like. Lining up with a VC that has the same end goal as you do for your business will ensure that you are not at odds in the future.
Be Realistically Optimistic
Don’t overstate your case to someone who may be thinking of backing you. VCs realize that the first year may not turn a profit, and most are okay with that. Presenting a realistic and upbeat five year plan is much more likely to gain the support of a VC than trying to gloss things over with overly optimistic projections. The odds are always against a “best case scenario,” so don’t plan for one.
VCs Are People
You borrow money from a bank and sign an arrangement to pay that money back. That is a transaction with a business. The relationship you have with a VC should be something different. VCs are not banks, and as such will want to be involved in your business. After all, they have as much interest in your success as you do. A VC can add value to your business. Having a good relationship means you can draw on their experience and advice to increase your chances of being successful.
Get Feedback from Rejections
You likely will have to talk to a lot of VCs before you find one who is willing to back your idea. This means you need to be prepared to be rejected — a lot. Rejections don’t have to be complete failures. They can be a great way to get feedback about things that you need to do to make your plan more attractive to the next interested party. Ask VCs who have rejected your proposal for some feedback and their thoughts before moving on to your next meeting. That feedback can prove to be the thing that turns your meeting into a successful business!