Ten Things a Venture Capitalist Never Wants to Hear About Your Business
In This Chapter
Avoiding the wimpy plan
Knowing when (and when not) to emulate a competitor’s or former employer’s business model
Discovering why everyone may not need your product
Your business may not be funded by a venture capitalist, but it is funded by someone, even if that someone is you. Investors demand a solid business model before investing, so it’s important you get the model right. Because venture capitalists are the most sophisticated investors in business models, I use them as an example of how you should view your business model and the things you should say about it.
In this chapter, I discuss common ways entrepreneurs describe their business models and how a venture capitalist may interpret these descriptions. How you describe your business model can speak volumes about its potential success or failure.
I’ll Figure Out How to Monetize This Later
What do Twitter, Groupon, Solar City, biofuel companies, Webvan, and most blogs have in common? They’ve all attracted a vast number of customers but failed to profit from them.
The Internet has brought a new mentality to the business world ...