project is again good, investors sometimes fled. Why?
writer Jim · Preiss (Jim Price) had several entrepreneurs, and Zell Ross School of business at the University of Michigan – Lurui Institute as a guest lecturer.
not long ago, a pair of entrepreneurs asked me for advice from the new company. They want me to help develop the promotion strategy, refine business model, calculate the financing expectations, and recommend financing. So I talked to the couple for an hour, hoping to get a clear idea of their business.
I am very satisfied with the results. They have my four most important elements of the entrepreneurial team:
1, truly innovative new business ideas;
2, product preliminary molding;
3, the industry has unique insights;
4, had experienced the hardships of entrepreneurship.
promised to give me a lot of stock and a board seat in order for me to be a consultant. I said, I will seriously consider these conditions.
but, after two days, I turned them down. What is the reason?
in the communication with them, I found that entrepreneurs in all kinds of problems in the partner who does not fall. Details are as follows:
1, despite the lack of qualifications, but they insisted on personally as number one: early start as president even CEO does not have what problem, but seasoned entrepreneurs know that the company’s development to a certain stage, it should introduce experienced occupation managers.
2, they are not modest enough: in most cases, they all think that they already know the answer, it is not good to seek and accept the recommendations of external experts and investors.
3, they too controlling: they are very difficult to let subordinates take charge as chief of even the most simple decision, also to be personally involved in.
4, they want to finance, but not to comply with the rules of the game: they want (or need) investor funds to the development of enterprises, but worried about equity dilution, board seats and votes by new investors to grasp.
entrepreneurs will not only scare away the external investors, but also to prevent the top talent and excellent advisers. Why? Because the company led by this founder certainly does not do much. The ability of the founders to limit the success of the enterprise, their attitude will scare away talent and capital.
, in contrast, the founders of these problems will not consider the profits of enterprises, rather than their own interests. Their focus is on the introduction of the best and most sensible capital. They are receptive to professional advice. They won’t be around because they’re smarter than they are