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 5 How to Pitch a Good Idea and How Not To

5 Ways TV is Like the Real World

• You have a short amount of time to make your point.
• People judge you by who you appear to be
• Past success does not guarantee future success
• Fast learners have a distinct advantage
• People who do not really matter love you when you are important and shun you when you are not.

Chapter 6 Why Pitches Go Wrong

Mr. Herjaec writes within 30 seconds he can tell whether he is likely to entrust his money to the individual making the pitch, even before I hear the reason for the person being at the studio. It is something intangible: a blend of confidence, assurance and even a bit of swagger. If the first impression fails to make me confident, the pitchers have 60 seconds to change my mind or I am out.

The Most Common Mistakes by Pitchers: Being Greedy

Greed combined with a lack of understanding of basic business principles has destroyed many dreams of pitchers.

Successful entrepreneurs treat business like commodities –or a farmer raising crops. You buy or plant the business; you grow it until the price is right and sell it to the highest bidder.

Most business people do not hit a home run the first time at bat.

How to Value Your Venture

• Your company is worth what the market says it is worth.
• No sales equals no value.   Limited profit equals limited value.
• An established value can be enhanced.

Chapter 7 Believe in Yourself

5 Commandments for Budding Businesspeople

• Identify your passion.
• Do Your Research – start with an idea back it up as you indentify and quantify a real need
• Hold off on expansion. Starting small enables you to change the focus if necessary. Consider expansion only when your core business is running smoothly and profitability.
• Set fixed goals Have no more than 5 to 6 goals and review them on a regular basis.
• Have an exit strategy. Whatever you choose can influence your operating decisions.

 

Linking to dividend paying stocks, we all evaluate companies from our different perspectives and often time the initial reaction or gut reaction is correct for lots of reasons. We use research to determine if our gut is correct. The process remains the same whether evaluating companies or deciding to invest in new ones.

There are more questions than answers, till the next time – to raising questions.