July 6, 2011
Posted by on
Not long ago I socialized with an aspiring entrepreneur after a tech event. Here is his story. He worked for a fortune 100 firm for close to three years. He then decided to put down his papers. And I asked him the reason behind such a strong step. As moving out of a large organizations takes a lot of guts. He pointed out that he just couldn’t do it, have dreams and work for a living at the same time. It was time that he quit and start thinking on what he should do that he loves doing. And I don’t suggest everyone to do the same. Just taking a bold step is not the right ingredient for a delicacy. As to his part, he had already come up with a set of ideas and knew the direction he was going. He said to get the venture capitalist money having a beta version is first step. None will invest in your ideas if they don’t see growth in it. And I agree with him here.
The first raw sculpture is to be carved from the big rock, from the big idea. You have to be quick and witty in changing your plans from what you think is right to what customer see is correct. Get your business to a point where you see potential buyers and not regular users. Customers will pay for your service if you really help solve or ease their issue of today. It need not be a real trouble, it may only be speeding up the present process. After all speed is what we need!!
-A lot of people thought Steve Jobs was a CEO of Apple but he never was until he came back to Apple in 1997
It wouldn’t have been possible for Steve Jobs to reclaim his seat unless he changed his ideas rigorously. And then he found his customers who are ready to pay for what he supplied.
Now you have the customers and not just free users as I call it. You need that little sheet of paper with entire business on one side. Humongous business plans are only good in Madagascar movie. But in a real life elevator you have mere 10 seconds! Don’t spend 3 months for hundred page plan and no beta. Generate facts based on your research and initial development. Show the target investor what you make and the future prospect of the business. Facts are always appealing than hypothesis. If you have him interested in 10 seconds elevator journey. You will have him throughout the journey of the business.
If you are seeking someone to invest in your ideas, it suggests the investor is busier than you are. The investor is of course making more money than you. And for sure he has better things to do rather than looking at more hypothesis. Rather show him the web site income statement. Show him your business website hits and the traffic. A reference to someone you know and is a good friend of his. All he needs is security and credibility for you and your business.
And finally trusting your ideas is most important aspect. It is more valuable than the product itself that you build. Because when you talk with confidence and trust in yourself, it shows in your eyes. When you have all of these you will also have his appointment by the elevator door opens.