The theory is, if you have any two of these three the third is easy to attain.
Iâ€™ve been to angel investor meetings where a supposedly strong vetted business has reached the point where they need capital to expand. They have been checked out, investigated and their product has passed the â€˜sleep testâ€™ (if you can go to sleep at night and not worry about the product its ok).
Yet as soon as the CEO opens his mouth at an angel meeting you know the world as they know it has failed to live up to expectations.
Startup CEOâ€™s may have some vision, they may have potential and they may have courage but they are always blindsided by the reality of being in the startup phase without the maturity or knowledge to take that business to the next level. Poor management will always fail.
A startup business tends to have as the CEO, one of two people; the visionary who conceived the business and is the boss and/or the believer in a dead-end job who convinces the company owners that he is the one to lead the new business into the new stage of development.
Iâ€™ve seen VCâ€™s sigh when the Business Plan presentation suffers from mediocrity because the company leaders believe their own flawed business plan. Iâ€™ve been there and yes have done that!
If you have a great idea with little money seek out incredible people who are mature and experienced. People who believe in your vision but also have confidence and have experience so they will be honest with you and who will tell you the truth about your business.
Imagine all the money in the world with a good team, yet a product no one wants. Yikes!
Iâ€™ve been fortunate to have been, in my mind, in the best scenario – a great team and a great idea. Visionaries, angel investors, banks and venture capitalists with vision will always see the wisdom of investing in this business scenario. This growing enterprise will always find the money to implement the business.
Donâ€™t follow your ego when someone questions your business acumen. Seek counsel and consider the future of your enterprise and remember the three cornerstones of success- good people, good products and money.