Starting a new business for the very first time can be intimidating. As a first-time entrepreneur, your nerves are edging and you’re diving into a bit of the unknown ocean. The good news is that overcoming some of the challenges that come along with first-time entrepreneurship can be extremely rewarding and satisfying.
#Advice 1 - Warren Buffett: Invest in You First
Warren Buffett, the CEO, and chairman of Berkshire Hathaway is a smart investor and one of the wealthiest men. He carefully selects firms for his investment and his firm, keeping the long game in mind. "Our favorite holding period is forever when we own portions of great companies with outstanding management," he stated of his firm's mindset.
If you're a business owner looking for finance, though, Buffett recommends focusing on yourself first. "Learning to communicate more effectively, both in writing and in person, increases their value by at least 50%, you must be able to present your ideas." A pitch must answer the "why you, why now?" questions, which provide context for the business, to be convincing. What has happened in the world to make this enterprise not just feasible, but also a fantastic idea? An entrepreneur must explain why the investors must invest in your companies and what they gain out of it.
#Advice 2 - Peter Lynch: Simple is Better
Peter Lynch of Fidelity Investments appears to agree with Buffett and Sacca since he searches out startups with clear and straightforward concepts. "If you're going to invest in a company, you should be able to explain why in simple terms that a fifth-grader can comprehend, and fast enough that the fifth-grader doesn't grow bored."
What's the bottom line for small business owners and entrepreneurs looking for investors? You should be able to convey your business concept and model immediately, succinctly, and plainly.
Investors hear a lot of pitches with a lot of statistics data. What makes an investor choose one company over the other with similar anticipated returns? The plot! Your investors are people, not robots, and compelling stories about why your business is important to you, where the idea came from, and where you plan to take it will sway them.
#Advice 3 - Mark Cuban: Convince The Investor
Mark Cuban, a billionaire angel investor, has made several wise investments during his life, including a 9% ownership in Eterneva, a company that makes diamonds from cremated loved ones' ashes. Eterneva meets Cuban's criteria for a solid investment. "I invest in firms that I believe are fascinating, differentiated, and led by committed entrepreneurs," he stated.
Investors are curious about both you (as the CEO) and the management team, from their industry backgrounds to their business experience. They must have faith in you and your team to expand the business and provide a return on their investment. Your experience as the "big name" is extremely valuable to investors.
The capacity to make choices with input from your leadership team, great interpersonal and networking abilities, and the ability to develop a firm around key competencies and deliver on them are all favorable attributes that investors seek in CEOs.
Many people have potential company ideas, but few have the motivation and resources to turn those ideas into a running, financially viable enterprise. Demonstrate to your investors that you can not only talk the talk but also walk the walk. You can show that you have all of the necessary components in place, therefore investors will be more interested since they will know that they will see a return on their investment sooner rather than later.
To demonstrate business preparedness, you must do your homework, such as market research and a company plan. You must show that you have a solid plan in place.
#Advice 4 - Peter Thiel: Finding Hidden Opportunities in Targeted Markets
It's one thing to be unique in your market, but if the market is too large for a small business to stand out, you may be doomed to fail. "When you're starting a new business, you don't want to go after giant markets," Peter Thiel, co-founder of Paypal and CEO of Palantir Technologies, advised startups. You want to go after small markets and quickly take them over.
"The most successful businesses have a vision for the future that is substantially distinct from the present". As an investor and entrepreneur, Peter Thiel always tried to be unconventional, to go against the grain, and to spot possibilities where others aren't looking.
Without sales, there is no business. Investors must be persuaded that your product or service is in high demand. Your product or service must be distinct from what is currently available on the market. When explaining the sales process to investors, your differentiators should be simply defined.
Perhaps your intellectual property gives you a competitive advantage, or perhaps you're uniquely tackling an issue. Prepare to show investors that your market potential is substantial enough to support investment by providing concrete facts. Show how you plan to continue to expand your pipeline to grow the business and make money by providing a track record of sales you've already made, breaking down the number of prospects at each stage in the buying process and how you plan to grow the business and make money by providing a track record of sales you've already made.
#Advice 5 - Chamath Palihapitiya: Choosing Your investors Wisely
The team you assemble is just as vital as your ambition, your idea, and your tale. Billionaire investor and founder of Social Capital Chamath Palihapitiya encouraged businesses seeking funding from venture funds firms to look for investors who can offer value to their business beyond the capital they can provide.
"There's such a high chance of another company being able to compete with you or disrupting you in the same manner you're disrupting someone else." "An entrepreneur requires a long-term partner who can start working with them in the Seed or A round and provide credibility and strategic counsel," he said.
The most essential decision you'll ever have to make as you establish your company is what kind of financing you'll utilize and who you'll look for as investors. Accepting any investor who offers you the world is a bad idea. Check to see whether their philosophies connect with yours, and if you can share a vision for your company's future growth.
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