There is plenty of advice to go around for starting your technology company, but this series aims to provide uncommon (or irreverent) information and approaches to successfully starting up. This is part 2 of a series, part 1 was here.
1. It's About the People. Money is more available than ever – from angel investors, incubators, crowdfunding sources and of course venture capital. Entrepreneurs seem to obsess more over money than attracting great people to help their business grow. Success hinges to a greater degree on the quality of the people you can attract as employees, consultants and advisors. Find the right people, the money will come.
2. Traction Is like Honey. If there is one phrase that is a favorite phrase of investors is: “We have significant traction.” Of course, the right kind of traction is important. Ideally, you want to have a rapidly growing user base who is engaged with your service or product. Being able to demonstrate that growth is coupled with engagement is critical to getting high-quality investors excited about your opportunity.
3. Integrity Is Important. Investment communities tend to be rather small groups composed of people who trade information and talk with each other frequently. It's important to deal with potential investors in an honest and forthright way. Cutting corners on ethics can make you the subject of conversations that will reduce the number of opportunities for you to obtain financing.
4. Crisp, Clear & Confident. One area that I see entrepreneurs not taking seriously enough is in practicing their pitch presentation. Being able to quickly and succinctly explain your ideas and buttress them with supporting information if questioned can make the difference between financing success and failure. Many investors will only provide you with one chance to make a positive impression. Practice makes the difference.