Entrepreneurship Founder of   Elias Shams
Perfect Timing to become an entrepreneur NOW! <ul><li>The current economy and job market is pretty bleak and will probably...
Unwritten rules for Entrepreneurs to find Capital
Rule Number 1: Don’t send a mass email to the VCs or Angel Investors asking for money <ul><ul><li>If they read the email a...
Rule Number 2: Trust <ul><li>Trust is the glue of the world of growing start ups </li></ul><ul><li>All the documentation i...
Rule Number 3: Building a company is about sales  <ul><li>From the first moment an entrepreneur has a business idea until ...
Rule Number 4: Having Good Contacts with start up experience <ul><li>An entrepreneur without a good service provider or ot...
Rule Number 5: Do your homework on the VC before contacting them <ul><li>If you haven’t done basic homework about an inves...
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Entrepreneurship

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Entrepreneurship

  1. 1. Entrepreneurship Founder of Elias Shams
  2. 2. Perfect Timing to become an entrepreneur NOW! <ul><li>The current economy and job market is pretty bleak and will probably stay this way throughout 2010. </li></ul><ul><li>No job waiting for you once you graduate </li></ul><ul><li>Major shortage of entrepreneurs in our nation’s capital and in other parts of the country these past few years </li></ul><ul><li>You are single, with little responsibility or financial burden, so you can afford to forgo a big paycheck for a little while </li></ul><ul><li>Historically, when times are bad for the economy, it can be a great time to start a business. </li></ul><ul><ul><li>16 of the 30 companies that make up the Dow industrial average were started during a recession or depression. These include Microsoft , Disney , McDonald’s , General Electric and Johnson & Johnson . </li></ul></ul><ul><ul><li>Although, Google started during the glory days of late 90’s, but it really started kicking ass during the 2001 recession. </li></ul></ul><ul><li>Therefore, Perfect Opportunity & Timing to become an entrepreneur NOW! </li></ul>
  3. 3. Unwritten rules for Entrepreneurs to find Capital
  4. 4. Rule Number 1: Don’t send a mass email to the VCs or Angel Investors asking for money <ul><ul><li>If they read the email at all, will be concerned that the entrepreneur is not specifically interested in a relationship with that VC </li></ul></ul><ul><ul><li>VCs want entrepreneurs who aren’t just interested in money – entrepreneurs that want to work with that specific VC </li></ul></ul><ul><ul><li>Entrepreneurs often dismiss this as “VC ego” and in some circumstances it is, but the reality of the VC model is a much greater reason for this filter. The same is true for experienced Angel investors. </li></ul></ul>
  5. 5. Rule Number 2: Trust <ul><li>Trust is the glue of the world of growing start ups </li></ul><ul><li>All the documentation in the world can’t protect you against a liar Moreover, whatever legal remedies you might have will not generally be worth the money they cost to assert </li></ul><ul><li>The reality is that the venture model works so efficiently because of the trust that participants have in each other. </li></ul>
  6. 6. Rule Number 3: Building a company is about sales <ul><li>From the first moment an entrepreneur has a business idea until the day his/her business is sold, the success of the startup is driven by little more than a succession of sales transactions </li></ul><ul><li>For many investors the unsolicited entrepreneur communication is a sign that the entrepreneur isn’t a good salesman </li></ul><ul><li>Investors are looking to work with people that they already trust. A good salesman finds someone who knows the investor to make a trusted referral, and sells them into lending their name to the entrepreneur’s effort </li></ul>
  7. 7. Rule Number 4: Having Good Contacts with start up experience <ul><li>An entrepreneur without a good service provider or other ally with proven start up experience is unlikely to succeed </li></ul><ul><li>Contrary to popular belief service providers that are at the top of a market do not take every client that they are offered. They are selective </li></ul><ul><li>Similarly, successful people are usually unwilling to put their reputation behind every entrepreneur who asks. Therefore, investors look carefully at the company an entrepreneur keeps </li></ul>
  8. 8. Rule Number 5: Do your homework on the VC before contacting them <ul><li>If you haven’t done basic homework about an investor, you don’t have the skills to succeed in company building </li></ul><ul><li>When you communicate with an investor make sure that you know their business, and explain why they are specific fit for your opportunity </li></ul><ul><li>It also helps to know something about the person you are communicating with </li></ul><ul><li>In spoken communications it’s probably sensible to know how their name is pronounced and don’t use a nickname unless you are given it by the person you are speaking to </li></ul><ul><li>One way most VCs manage their voice mail is that if you mispronounce their name, you fall pretty far down the list – it just shows them that you don’t know them, and don’t know any of their many friends in town. </li></ul>

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