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Suggest You - Strategic Fundraising for Startup Technology Companies
There was a time when all you needed to do to get that job was have the proper education and experience. Well that’s no longer the norm today. Human Resource specialists are well trained to look for the best communicators. Simply put, the better your communication skills, the better your EQ or emotional intelligence!.There are many companies who will take a lesser qualified candidate over the so called perfect 10, simply based on his or her ability to express themselves well. They know that more often than not, good communicators are just plan better team players. Teams that were made up of 12 staffers only a few years ago, have been downsized to just 6, and man oh man .. they better be able to get along, because the workload for 12 hasn’t gotten any lighter, and there are only 6 staff driving the bus these days. Your team player skill set is a huge factor in getting the job or getting the promotion, and so it goes - good communicators are invited join the team or move up in the company, every time.We all know people who talk first and think later or seemingly, never at all. Well as a broadcaster for many years, I was used to talking out loud both on air and off. I can say with great certainty, that practicing what you want to say ahead of actually doing so, will teach you to speak better and trust me, that adds huge value in almost all situations.Hearing your thoughts come together out loud , before anyone else hears them allows you to monitor and edit exactly what you are trying to say. That alone will give you are great degree of confidence. Work on your EQ skills, people will notice immediately and you’ll find them s
Lastly, let’s talk about what outside investors look for in a fundable venture:
I) Management
II) Market size/opportunity
III) Defensible differential advantage
The three items listed above are all crucial, but they aren’t equal in importance. Professional investors look for strong management teams, but if there are holes in the current team, it isn’t necessarily fatal for many investors. They’re happy to help you fill out the team. Many, in fact, prefer it this way. But having a large market opportunity and strong differential advantage are non-negotiable in the eyes of
Many organizations end up looking for fundraising ideas because these organizations do not receive all of the money that they need for a great organization. There are some great fundraising ideas available, and many groups come up with new and different ideas that are better than some of those previously used. A group dedicated to making some extra money for their cause should first look at some of the tried and true ideas. These fundraising ideas have worked at least once, and these will probably work again. Most of these ideas are not restricted so these can be used by others.Fundraising ideas that have worked before will often help a group raise a great deal of money. Car washes manned by volunteers with all of the profits going to the group in need of funds have long been successful. The amount of funds raised by any car wash varies for different groups. Some groups are able to get a good location, and this could make the difference between success and failure. The traditional bake sale is a great fundraising idea, but the bake sale does not usually raise large sums of money. Those people looking for some great fundraising ideas should have no problem meeting their goals.Great Fundraising Ideas Should Be Solicited From The GroupFundraising usually depends on the dedication of the group to the project. Usually it will be easier to assemble the group for the tasks involved if they are enthusiastic about the project. Young people especially will do better if they like the activities. The leader can hold some brainstorming to come up with some pertinent fundraising ideas. The group will know which activities are enjoyabl
The questions that run through an entrepreneur’s mind are nearly endless. Do I even need the money? Is my company fundable, regardless? How much do I need? How much should I try to raise? What’s the best time to start raising money? What type of investor should I approach, and what are their expectations? How should I go about approaching them?
I could fill up the rest of a page with salient questions an entrepreneur might have. This might be the most daunting process in the minefield of difficult steps to forming and building a winning high tech company.
So you’re a new entrepreneur, with a great idea, a prototype, and a vague notion that you might need to raise some capital. Where do you go from here?
NO COOKBOOK FORMULA Well, like most things that really matter, there’s no easy answer. It depends on what type of company you’re trying to build, your own control and risk/reward mentality, as well as the dynamics of your market.
For discussion purposes, I’ll focus on an embryonic software company. Most of the discussion will be just as relevant to a later stage business, or an early stage manufacturing business. In a manufacturing business, you’ll need to raise more money to fund manufacturing in the ramp-up phase. But the initial fund-raising is very similar.
FUNDRAISING BASICS
First of all, let’s quickly cover the various categories of capital sources. There are many variations and shades of gray with respect to funding sources, but the following are representative of the basic categories available to new software companies:
1) Self-funding
2) Friends & Family
3) Angel Investors
4) Venture Capital
5) Strategic Partners
Hopefully, these categories are pretty self-explanatory. Next, let’s look at what TYPE of company the entrepreneur is trying to build:
A) Lifestyle Company
B) Solid Single
C) Home Run
A Lifestyle company is one in which you are often intermixing your personal life with your company life. There may be family members involved in the business, your write-offs and accounting are more aggressively aimed at reducing taxes than showing profits, and you aren’t interested in or planning to sell the company anytime soon. Solid Singles and Home Runs are similar to each other; the major difference is market size/opportunity.
Lastly, let’s talk about what outside investors look for in a fundable venture:
I) Management
II) Market size/opportunity
III) Defensible differential advantage
The three items listed above are all crucial, but they aren’t equal in importance. Professional investors look for strong management teams, but if there are holes in the current team, it isn’t necessarily fatal for many investors. They’re happy to help you fill out the team. Many, in fact, prefer it this way. But having a large market opportunity and strong differential advantage are non-negotiable in the eyes of i
There are many changes coming in the world of work, such as increased competition, the need for more education and certifications, and the trend to change careers 5-7 times in a lifetime. No matter what job or career path you decide to take, there are some basic skills that all employers look for. To succeed in the modern world of work, keep your skill set up- to- date. The following is a list of the top ten skills needed for the new world of work.1. CommunicationCommunication is the ability to effectively communicate your thoughts and ideas in person, on paper, and over the telephone. It involves listening to others and being open to other viewpoints and opinions.What communication skills can you develop?2. CreativityCreativity is the ability to think and act “out of the box.” To be creative is to discover new and innovative ways of thinking and doing things.How can you be more creative?3. TechnologyUnderstanding technology is the willingness to utilize computer systems, the latest software, etc.. Embracing technology means using the computer in your daily life and on the job.What do you need to embrace technology?4. Team WorkTeam work is the ability to work effectively in a team situation. It is being able to utilize the right people to get the best results and being willing to lead and to follow.What do you can you be counted on to bring to a team?5. FlexibilityFlexibility is the ability to “go with the flow.” To be flexible, you change on an as-needed basis, with the ability to “change hats” frequently.How can you bend and
So you’re a new entrepreneur, with a great idea, a prototype, and a vague notion that you might need to raise some capital. Where do you go from here?
NO COOKBOOK FORMULA Well, like most things that really matter, there’s no easy answer. It depends on what type of company you’re trying to build, your own control and risk/reward mentality, as well as the dynamics of your market.
For discussion purposes, I’ll focus on an embryonic software company. Most of the discussion will be just as relevant to a later stage business, or an early stage manufacturing business. In a manufacturing business, you’ll need to raise more money to fund manufacturing in the ramp-up phase. But the initial fund-raising is very similar.
FUNDRAISING BASICS
First of all, let’s quickly cover the various categories of capital sources. There are many variations and shades of gray with respect to funding sources, but the following are representative of the basic categories available to new software companies:
1) Self-funding
2) Friends & Family
3) Angel Investors
4) Venture Capital
5) Strategic Partners
Hopefully, these categories are pretty self-explanatory. Next, let’s look at what TYPE of company the entrepreneur is trying to build:
A) Lifestyle Company
B) Solid Single
C) Home Run
A Lifestyle company is one in which you are often intermixing your personal life with your company life. There may be family members involved in the business, your write-offs and accounting are more aggressively aimed at reducing taxes than showing profits, and you aren’t interested in or planning to sell the company anytime soon. Solid Singles and Home Runs are similar to each other; the major difference is market size/opportunity.
Lastly, let’s talk about what outside investors look for in a fundable venture:
I) Management
II) Market size/opportunity
III) Defensible differential advantage
The three items listed above are all crucial, but they aren’t equal in importance. Professional investors look for strong management teams, but if there are holes in the current team, it isn’t necessarily fatal for many investors. They’re happy to help you fill out the team. Many, in fact, prefer it this way. But having a large market opportunity and strong differential advantage are non-negotiable in the eyes of
The New Year is a great time to analyze your job and the satisfaction you get from doing it. Running the rat race is just that, scurrying around only to find that at the end of the day or week you are still not happy about who you are and what you do. For many people they think exercise, changing their eating habits, or learning a new sport or language will make a difference in their emotional and physical well being. Fortunately for some that’s all it takes, but for others a complete job makeover is the only way.Today, changing employers is nothing that can be accomplished over-night. It may take a year or more because good paying jobs are scarce. There are, however specific things you can do to begin this metamorphosis. You must first acknowledge that a change is imminent and that drastic measures are needed. Below are ten signs that clearly indicate that you need a complete job makeover.1. You become physically ill upon arriving at work or feel the need to drive past the parking lot and return home2. Friday offers no relief, it is just a distressing reminder that Monday looms in the not too distant future3. Work activities are dull and boring and you sit with your door closed or in your cubicle playing computer games4. You physical health is failing, you feel exhausted and listless5. You stop playing office politics and avoid trying to please your boss and keep peace with co-workers6. You come to a realization that no matter how hard you work or what you accomplish nothing satisfies you7. Your promotional options no longer exist; the company has permanently frozen the H
FUNDRAISING BASICS
First of all, let’s quickly cover the various categories of capital sources. There are many variations and shades of gray with respect to funding sources, but the following are representative of the basic categories available to new software companies:
1) Self-funding
2) Friends & Family
3) Angel Investors
4) Venture Capital
5) Strategic Partners
Hopefully, these categories are pretty self-explanatory. Next, let’s look at what TYPE of company the entrepreneur is trying to build:
A) Lifestyle Company
B) Solid Single
C) Home Run
A Lifestyle company is one in which you are often intermixing your personal life with your company life. There may be family members involved in the business, your write-offs and accounting are more aggressively aimed at reducing taxes than showing profits, and you aren’t interested in or planning to sell the company anytime soon. Solid Singles and Home Runs are similar to each other; the major difference is market size/opportunity.
Lastly, let’s talk about what outside investors look for in a fundable venture:
I) Management
II) Market size/opportunity
III) Defensible differential advantage
The three items listed above are all crucial, but they aren’t equal in importance. Professional investors look for strong management teams, but if there are holes in the current team, it isn’t necessarily fatal for many investors. They’re happy to help you fill out the team. Many, in fact, prefer it this way. But having a large market opportunity and strong differential advantage are non-negotiable in the eyes of
The only way to find a new career is to stop looking for a job Career success requires the identical effort and targeting as setting a course for continuous professional development.Job opportunities are found through the strategic use of the same steering mechanism that successfully sells products and services: Positioning, Exposure and Marketing.Seek employers needing solutions to their problems Change your career search strategy from hastily blasting resumes extolling your attributes to more thoughtfully approaching an employer with the idea of helping him or her solve a problem or achieve a goal. By doing so, you’ll leverage your competitive advantage. You’ll then always invest your energies where you can obtain the highest return of time and energy because your initiatives will have a target or an “intensity of purpose.”Hot career tip: Deliberately design your career management campaign for success.There are nine angles to engineer a successful marketing strategy in a competitive hunt and each brings focus and clarity. These benchmarks more effectively drive a career transition because they concentrate on identifying problems, differentiating solutions and maximizing exposure to career resources.POSITIONING•Position yourself as a consultant rather than a salesperson regardless of your field. Do this first in your own mind and then in the mind of your “customer,” the targeted employer.•Be a Problem Detective. Approach each employer with the idea of helping him or her solve a problem or achieve a goal. Describe what you can do, not who you are.•An
4) Venture Capital
5) Strategic Partners
Hopefully, these categories are pretty self-explanatory. Next, let’s look at what TYPE of company the entrepreneur is trying to build:
A) Lifestyle Company
B) Solid Single
C) Home Run
A Lifestyle company is one in which you are often intermixing your personal life with your company life. There may be family members involved in the business, your write-offs and accounting are more aggressively aimed at reducing taxes than showing profits, and you aren’t interested in or planning to sell the company anytime soon. Solid Singles and Home Runs are similar to each other; the major difference is market size/opportunity.
Lastly, let’s talk about what outside investors look for in a fundable venture:
I) Management
II) Market size/opportunity
III) Defensible differential advantage
The three items listed above are all crucial, but they aren’t equal in importance. Professional investors look for strong management teams, but if there are holes in the current team, it isn’t necessarily fatal for many investors. They’re happy to help you fill out the team. Many, in fact, prefer it this way. But having a large market opportunity and strong differential advantage are non-negotiable in the eyes of
The field of advertising is a very interesting industry in business and one, which is very fun to discuss. One of the finest things to talk about is all the mistakes that international corporations make when trying to market their services and products in other countries.Generally these issues occur because of translation problems or because the company does not fully understand the culture of the nation in which they are marketing their product into. Remember there are over 300 countries in the world and generally about 150 of them are pretty viable for multinational corporations with pretty good products.In reviewing the Internet's lists of multinational corporation advertising mistakes and international advertising of products while studying soft drink makers; I came across quite a few here is one very funny one that happened in China; Pepsi's "Come alive with the Pepsi Generation" translated into "Pepsi brings your ancestors back from the grave", in Chinese.Of course PepsiCo, Inc. is not alone in making mistakes Coca-Cola has also been in a number of markets and has also made mistakes in China for instance I found this on the Internet; The Coca-Cola name in China was first read as "Ke-kou-ke-la", meaning "Bite the wax tadpole" or "female horse stuffed with wax", depending on the dialect. Coke then researched 40,000 characters to find a phonetic equivalent "ko-kou-ko-le", translating into "happiness in the mouth."If you are a student of advertising or you work in a large multinational corporation he need to check things over quite a few times to make sure you did not make any bad mistakes, because if you do som
Lastly, let’s talk about what outside investors look for in a fundable venture:
I) Management
II) Market size/opportunity
III) Defensible differential advantage
The three items listed above are all crucial, but they aren’t equal in importance. Professional investors look for strong management teams, but if there are holes in the current team, it isn’t necessarily fatal for many investors. They’re happy to help you fill out the team. Many, in fact, prefer it this way. But having a large market opportunity and strong differential advantage are non-negotiable in the eyes of investors. They are looking for big returns. It’s a long-held view among institutional investors that their own management time is the limiting factor in their own business. As a result, they don’t feel they can afford to invest in “solid little businesses”. If you don’t stack up as having big potential in both of these key areas, almost every professional investor will take a pass.
YOU HAVE TO LIVE WITH THEM, TOO
Another important consideration that many entrepreneurs fail to consider is how well potential investors fit with the company’s management. Management teams are often so focused on “getting the money” that they fail to consider that you “have to live with them”, as well. It’s a bit like getting married. You may be thrilled to attract the most prestigious investor (like the best looking potential spouse), but end up with business philosophy and personal conflicts that severely retard the company’s development. This isn’t a used car transaction, where the sale is made and the parties walk away. You and your investors are now intertwined, but may or may not have the same interests.
So ask yourself: Is this a good match?
Are you seeking a “hands off” investor, or someone that will get involved with the details—providing business guidance and contacts—for better or for worse? Many VCs, for example, have successful business backgrounds and networks that can make them invaluable as advisors. There’s another group, however, that don’t have the background or skills to run a company. Yet their arrogance leads them to believe they are eminently qualified to drive even the most strategic of decisions. Are they going to be so involved that it will take up much of your scarce management time that is needed to build the business? On the other hand, are the investors so busy that you won’t be able to get their attention when you need them? Which type do you want on YOUR board?
It’s true that the money that you raise is a commodity—but the people relationships that come along with it can make or break your company. Early stage fundraising, taken as a whole, is NOT a commodity function.
THE LIFE STYLE COMPANY
Now let’s look at the simplest case study. An entrepreneur has conceived a software business using his knowledge of a particular, very specific, vertical market. It’s a market he knows well, and there’s almost no direct competition. Unfortunately, the market, while attractive to him, is not large by software category standards. Yet the market is plenty big enough to support a very profitable company, part
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