It troubles me how many entrepreneurs get “bullied” when they look for funding. There are typically many sources of funding, but the entrepreneurs do not know where the sources are. The lack of knowledge means they will fail to take advantage of what is available to them.
In my past experience, I have seen many entrepreneurs coming with great ideas but not having the understanding of how they should start and grow the business. They come looking for funding without understanding how the process works. Some look for the wrong channels of funding at the wrong time, what is right type of financing for their business at that time they need it.
On the other hand, I have seen many investors take advantage of new entrepreneurs by structuring financing deals which may be wrong for their start-up. Entrepreneurs should realize that investors are there not just to provide the funding but also to help and guide the company. Investors should see what is best for the business and all the stakeholders, especially the entrepreneur and his team. Investors should not be thinking of making a quick buck out of the situation especially by forcing early exits. So, I would advise entrepreneurs to do some due diligence of investors before partnering them.
This week we look at:
Tuesday: We look into being decisive and solving problems. How does indecisiveness hurt your business? And how making snap judgments will make you achieve much more, even if you are wrong, rather than overthinking and not taking any actions.
Wednesday: We talk about building your core team. The team is like a family with a common goal, to make the business succeed. As such the people you bring in have to be aligned with that goal, and they must be right for you to achieve it.
Thursday: Every business needs financing at one point or another, to start or to grow. This week we look at Angel Funding, what should you understand about it before you approach an Angel to finance your business.
There is a need for entrepreneurs to understand the basic concepts of funding. They need to understand the types of financing available and they need to know what financing is suitable for them and at what stage. There is also a need to understand the structure of the business and to understand their company’s finances properly so that you can have a feel of when the company will need financing the most. This will help them work out better deals with investors who would favor them and would be in best interests for the business.
Entrepreneurs are a different breed of people; in the beginning stages, they must know and understand everything related to their business, in order to safeguard and grow their interests. Compared to most people who focus and become experts in one aspect of the business their entire lives, entrepreneurs have to work and think fast, and be able to work on every different part of the business, in order to make it succeed. You have to be like the coach of a team who must understand every aspect of the game and understand what every position in the team entails.