Words used in
different ways seem to have a different response, though they have the same definition. Here is the published definition:
Entrepreneur: a person who organizes and manages
any enterprise, especially a business, usually with considerable initiative and
risk.
It is interesting to
mention that the synonym for entrepreneur is capitalist. But, that is for another discussion.
Whether you are a
start-up entrepreneur launching a new company or a corporate entrepreneur
tasked with creating a new business unit, you can use these practical tips to
obtain greater support and resources. These ideas capture the best practices
that have helped entrepreneurs for start-ups and corporate ventures around the
world, including most high tech innovators since the mid-‘80s, convince
resource providers such as investors, board members, customers and suppliers.
1. Don’t just talk
about your exciting business idea – explain why you’re launching it.
It’s normal: you
want resource providers to support you, so you are eager to tell them what a
great business opportunity you’re working on. But remember: they are actually
evaluating whether to support YOU, not just the new business. Tell them
honestly about the real reasons that lead you to take this potentially risky
path in your career.
2. Highlight the
commitment and sacrifices you’re making for the new business
A major red flag,
especially for investors in new start-up ventures, is to find out that the entrepreneur
is not risking any personal wealth to launch the business. In the corporate
venturing context, a similar concern arises when the “Intrapreneur” (the leader
of a new business unit) demands a generous salary increase and corporate perks
before obtaining any results. These situations reflect unrealistic expectations
regarding an entrepreneur’s commitment and willingness to take professional and
personal risks.
3. Create a
“virtuous cycle” of supporters.
When outsiders
evaluate your new business proposal, they are eager to see that others have
decided to support you, even if it’s just your family and friends. For example,
if a friend has decided to invest in your new venture, be proud and feel free
to mention it to others (with the friend’s permission, of course). It’s easier
to convince people when they see that you’re not lonely in trying to get a new
business started.
4. Prepare your
venture pitch in two versions: one for industry experts, another for everyone
else.
You must have heard
about the importance of crafting a good venture pitch (or an “elevator pitch”)
that will help to rapidly generate excitement about your venture proposal
(typically, in 2 minutes). One of the difficulties in creating a good pitch is
that industry experts expect to hear very specific aspects that differentiate
your business from others in the same field, while others may not be aware of
some basic facts related to the industry (especially if you’re in a specific
technical field). Create different versions of your venture pitch for each of
these audiences in order to maintain their interest throughout your
conversation.
5. Before doing a
formal presentation figure out how to neutralize the skeptics in the audience.
After pitching your
venture several times, it’s likely that a resource provider will invite you to
make a formal presentation about your new business. This is a good sign, and
you must prepare carefully. Many entrepreneurs forget to prepare for a crucial
aspect of the presentation, which is: who in your audience will be likely to
raise many concerns about your project? In some situations, this is relatively
easy to identify in advance. For example, when presenting a new corporate
venture in industrial companies, the financial officers need a lot of
convincing before they’ll authorize any funding. In banks, the risk departments
tend to be the skeptic ones. When presenting a new start-up, investors with the
greatest industry-specific expertise in your field require special attention.
Know your audience and prepare for ways to address their concerns.
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