New Year's resolutions for startups who want to close deals(venturehacks.com)
venturehacks.com
New Year's resolutions for startups who want to close deals
http://venturehacks.com/articles/closing-deals
5 comments
not sure my post is inconsistent with anything here. all i'm saying in a nutshell is (i) create a competitive environment, (ii) be disciplined, (iii) work hard, (iv) diligence the guys on the other side of the table and (v) get a good lawyer/advisor to watch your back. yes, i tried to mix-up the tone for venturehacks. thanks, scott
Not such bad advice here, especially consider that it is coming from a service provider (i.e., corporate attorney). My own opinion is that realistically, the only startups that could close an investment deal in 2010 are mature companies that have demonstrated a robust revenue model and are in need of money (and only money) for expansion. My advice to them is the same as what I received in 1999 after I secured my first term-sheet. After almost three years of hard work I finally had something to show to my attorney friend and I asked him what to do next. He said, “now go out and get another one just like it.” In other words, getting a term-sheet is only the first measurable step and to close any deal, you must have competitions. But all entrepreneurs should remember that “Every problem in a startup (including funding) can be solved with the timely arrival of a PO.” So even if you can't close any investment deal in 2010, as long as you have sustainable revenues, all other problem can be solved. In other words, focus on "value creation" and the "valu-ation" will follow.
yes, competition is key and obviously so is cash flow (but two different issues). thanks, scott
How about stay away from lawyers that try and make business decisions for you?
i agree, but i think you need a good lawyer (without a vested interest) to watch your back when you're doing deals. a good lawyer can also help you think through some of the key business issues. cheers, scott
1. Focus on the opportunities that are in front of you.
2. Establish a working rapport with the customer/partner, a deal should be the start of a long and mutually beneficial relationship.
3. Maintain your balance, burnout is much more of a risk than losing any one deal in this environment.
4. Don't get into an adversarial relationship with your customer/partner.
5. Focus on reaching a business agreement, lawyers can advise you on business risks, but in the end it's the entrepreneur's call what risks to take.
EDIT: This post is not representative of the tone and quality of those on his website http://walkercorporatelaw.com/ here are two that are much more useful:
http://walkercorporatelaw.com/startup-issues/ask-the-attorne...
http://walkercorporatelaw.com/angel-issues/angel-financings-...