I'm sitting in the Caribou Coffee on Lane Avenue doing some work before heading over to TechColumbus for my usual Monday morning meetings. One thing I always like to do is scan my blog reader for anything that I may have missed over the weekend. The upcoming TechColumbus "e-Track" luncheon series caught my eye. That reminded me about a great blog written by Dan Casey an "Entrepreneur in Residence" at TechColumbus (it doesn't hurt that Dan just walked in either). An Entrepreneur-in-Residence (EIR) is an experienced and successful businessperson offering expertise, advice and encouragement to individuals building new ventures. Dan brings a great deal of entrepreneurial and senior management experience to the funded TechStart companies here in central Ohio. Dan's blog is called "The EIR Corner, A Resource for Entrepreneurship". Dan covers a variety of topics important to building a high growth business. Much of this information is a mystery if is your first time seeking investment. If you are considering testing the investment waters this is a MUST read. The topics covered in his blog are (I've linked each topic):
- Term Sheet Topics
- Top Seven Capital-Raising Mistakes
- Valuation
- Learning to Let Go
- Elements of Sustainable Companies
- 10 Rules for Business Success
- The PowerPoint Introduction
- Lifestyle Business
- Coachability
- Searching for the Exit
- Due Diligence
- Dilution
- Business Plan Thoughts
- Building a Business Plan
- The Elevator Pitch
You've all heard the saying that you only get one chance to make a first impression. When it comes to seeking investment you don't want to make a BAD first impression because you don't know what you are talking about. I have seen entrepreneurs say and do the wrong thing in a first meeting and not be taken seriously again. Remember that venture capitalists and angels invest in people and teams that can execute. You want to go into meetings doing things for the correct reason. If you have done your homework and the investor doesn't agree with the valuation, structure, etc. you can either negotiate the point or at least you can part in a positive way. If you go in and have done something that shows you haven't done your homework relating to the investment process investors may feel you are not worth the effort and move on. Remember the adage..."A" teams with "B" products/markets will outperform "B" teams with "A" products/markets. You want to be an "A" team...prepare yourself and be ready before you lose the chance to make a good first impression.
"...the skillful fighter puts himself into a position that makes defeat impossible and does not miss the moment for defeating the enemy. Thus it is that in war the victorious strategist only seeks battle after the battle has been won, whereas he who is destined to defeat first fights and afterward looks for victory"...Sun Tzu
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