If you watch business shows on TV either Shark’s Tank or Dragon’s Den you will have seen Robert Herjavec sitting on chair 5 and offering good advice and sometimes offering money. Mr. Herjavec was written a book called Driven – How to Succeed in Business and in Life published by HarperCollins Publishers, Toronto, 2010.
Chapter 1 Know a Good Deal when You See It
Mr. Herjavec tells a story about a possible closing when an advisor to the group began to ask questions and not show respect. As this happen, Mr. Herjavec tore the cheque up and said, if the amount is so small write a cheque yourself. The lessons are you do not bite the hand that feeds you. Venture Capital is too difficult to obtain. More importantly, do not assume that every business idea you have is worth a million dollars on its own. Because it is not.
Chapter 2 Appreciate What it Takes To Succeed
I admire the people that come before me because no matter how badly conceived and poorly presented their venture may be, I admire them for their determination to take risks and their preference to play the role of entrepreneur over that of employee.
One of the most important elements for success in business is the ability to communicate your concepts effectively to a wide range of people, including investors, employees and customers. If you do not get your concept easily for investors, why would consumers buy the service?
Chapter 4 Put Yourself in the Investor’s Shoes
- Things that People Do Well when Pitching a Deal
- Engage us quickly – you really only have 30 seconds
- Maintain a pleasant demeanour – be persuasive without being pushy
- Bring us a great idea – one that is original and appeals to a defined market
- Know how to make a good presentation – back up you pitch with solid facts and figures
- Have recorded actual sales or have a realistic plan to generate them – nothing succeeds like sales
- Submit a reasonable valutation of thie idea or company – it does not pay to be greedy
Things that People do Badly
- Fail to be honest – pitches are followed by due diligence
- Do not know their market – wise investors do not put money in things they do not understand or the person seeking the money does not understand
- Have recorded no sales
- Are unrealistic about growth
- Become rude
- Use sex
Linking to dividend paying stocks, whatever you do the process does not change to a great deal, inside a company divisions are expected to grow and how are they going to do it, the senior people have to make a pitch to their higher ups or this means all employees likely have an idea(s) which could translate into higher growth. How does a company tap into its workforce? How well are the new products?
There are more questions than answers, till the next time – to raising questions.