The Start Up Process II
- Topics:
- Venture Capital
- Source:
- Billsnow.com
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Overview: The article underlines some of the basic concepts to be followed by the entrepreneurs. When defining the business model, one has to keep it as simple as possible. The company has to speak and write in simple terms, as people are more impressed with clarity than complexity. The company also has to know how and when to approach investors. This is something that escapes most early stage entrepreneurs. They seem to believe if they promote their idea with hyperbolic exclamations of self proclaimed greatness, VCs will be duped into jumping on board without doing any due diligence. One has to try to mitigate risk and deliver wins. The entrepreneur must mitigate as much risk as possible. Again one has to take care of the funds available. Simply put, the people should do things as cheaply as possible. Entrepreneurs need to remember that raising money is means to an end. At the end of the day a company should try to solve a pressing pain point for customers, generates revenue and profits, creates value, and exit at a healthy multiple.
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Format: HTML | Date: Sep 2003 | Pages: 1
