Category Entrepreneurs | Jenifer Bartman

October 8, 2015 by Jenifer Bartman

Getting Started: Preparing for the world of entrepreneurial adventure (Rejection)

Published by CPA Canada in CareerVision

Chances are, you’ve had some real success in your life thus far. Perhaps, you’ve graduated with a business degree, obtained a professional designation, won a job or two, and maybe even received some awards or honours along the way. Although you might have experienced some disappointments, they tend to pale in comparison to the accomplishments that are well worth celebrating.

As you progress in your career, the odds are that you might experience a setback or two unlike anything you’ve encountered thus far. As the stakes get higher, the likelihood of success can get proportionately smaller, and what keeps us trying is the realization that the potential rewards are often greater. Having said that, in the corporate world, jobs can be like buses, with another one coming along at any moment. If you miss the first one, sit tight, as another opportunity isn’t far away. There is a certain kind of comfort in this.

Working with a start up company can be quite different in this regard, and it’s important to understand the implications if you’re considering making the switch from a corporate job. In this series, our focus is on understanding the significant differences between a startup environment and the corporate world so that you can put a greater emphasis on developing some of the skills that will serve you well in advance of when they’re actually needed. So far, we’ve considered the implications of risk, the ever expanding job description, and money. Let’s talk about rejection.

Why it Matters

If you’ve met someone who works with a startup company, they can probably tell you lots about the upside; the excitement, thrill of doing something new, and the opportunity to “chart your own course” (they will soon learn otherwise!). What they probably don’t talk much about are the odds of getting to the point of real success, which can be startlingly bleak.

With an abundance of new ventures launching wherever you look, the reality is they are challenged to find the necessary resources, customers, and capital to be successful. In a world where demand far exceeds supply, many upstarts don’t last very long. This reality is particularly true in the case of seeking the necessary capital to expand products, market effectively, and support growth. Many entrepreneurs consider this to be the easy part, as who wouldn’t want to support their venture? As the months go by, it becomes clear that just getting an investor meeting is difficult, much less making a pitch and getting funded.

In reality, the odds are stacked against startup companies. Chances are that your venture will be rejected again and again; by potential customers, investors, and partners. Those that work with startup companies, regardless of their level of success in life thus far, are likely to face rejection in a way that they never have before. This can be disheartening, as well as quite a shock to the system.

Get Started

Although no one likes to spend time thinking about the downside, doing so is a good way to strategize to get to a better place. This includes planning to face rejection and how to rise above it:

Develop sound problem solving skills: Those who find resilience in difficult times tend to have an ability to think creatively and solve problems. As simple as it sounds, many people just aren’t very resourceful and lack the ability to determine what to do next. Practice problem solving by approaching situations with a Plan B, Plan C, and even a Plan D. Make it a “game” for yourself to strategize how you might get over hurdles, even in situations where they don’t actually occur.
Adopt a flexible mindset: Those who last the longest during difficult times perhaps have the greatest ability to be flexible, in terms of adapting to circumstances that are different than what was expected. If funding isn’t received when anticipated, or turns out to be less than planned, surviving the setback can be all about how flexible a company can be.
Learn about early stage financing: Since financing is so integral to success and so elusive at the start up stage, it’s an important area to learn about, sooner rather than later. Understanding how this niche area works and what investors look for can help you to be better prepared to respond to challenging situations.
Have an outlet for countering setbacks: Rejection and setbacks are stressful, and having a coping mechanism for challenges that are unlike anything previously experienced is important in order to keep going. Find what works for you, be it creative interests, sports, exercise, or meditation and practice on a regular basis. The startup world is truly a marathon and it’s important to develop longevity.

Preparation won’t end rejection, but it might help to make it less frequent. It will also put you in a better position to withstand the many setbacks that will come and find the ingenuity and wherewithal to keep going. The entrepreneurial world isn’t like where you’ve been. You’ve got to train for it.

July 27, 2015 by Jenifer Bartman

Getting Started: Preparing for the world of entrepreneurial adventure (Managing Money)

Published by CPA Canada in CareerVision

Although you might think you know the meaning of the phrase “the buck stops here”, working with a start up company will reveal an entirely new definition. Call it life or death, the last quarter, the final frontier; money matters in a way that it never has before, and is a topic that will find its way into most conversations, from morning til night.

In comparison, most who work in the corporate world think about money in just a handful of ways: the paycheque (and when it’s coming), annual raises (and the likelihood of getting one), what the next job pays (and is it worth the trouble), and perhaps, whether the company has a budget for a particular initiative or event. Most of these interactions seem distant, somewhat detached, and of a lesser frequency. In a lot of ways, there is a relative amount of stability in these periodic musings.

Working with a start up or, what investors often refer to as “early stage”, company can be an exciting place, but it’s important to fully consider what’s involved before making the switch. In this series, we will do exactly that, so you can make an informed choice, and perhaps, benefit from placing a greater emphasis on developing some of the skills that will serve you well in advance of when they’re actually needed. So far, we’ve considered the implications of risk and the ever expanding job description. Let’s move to the issue of money.

Why it Matters

Start up companies are often born from ideas, not to mention the endless enthusiasm of the entrepreneurs who lead them. As with building a new home, start ups have a tendency to need everything, from supplies, to people, to technology. These are basic costs that are often funded by the founders and typically have little to do with attracting customers. Before long, a young bank account can find itself empty, and often much more quickly than expected.

With some of the novelty having worn off, (but, enthusiasm not dampened), entrepreneurs start to more fully appreciate just how much is involved in attracting and maintaining customers. Familiar phrases at this stage include “long sales cycle”, “it’s more work”, and “not what we expected”. Converting leads into sales and having the resources to fulfill the needs of customers require money, and guess what? It’s often needed in advance of receiving customer payments, which makes the need for cash flow management (and actual cash) all the more critical.

Those who work in the start up world need to find comfort with this “edge of the razor blade” existence, otherwise what they’re trying to build probably won’t be around for very long. The reality of being in this situation can be a shock to the enthusiastic system of those who truly believed that the world couldn’t live without their product.

Get Started

Building a new relationship with cash can be difficult, especially when it’s unexpected. The good news is that you can plan for it, making the transition less daunting. Here’s how to get started:

Review your expenses: Take a look at your current expenses to fully understand what they are (you might find some surprises during this process!). Identify items that could be cut or reduced, and think about the lifestyle changes you could make, if necessary (is now really the time to get rid of your roommate?). This will provide you with a baseline of information and some alternatives for when you’re ready to enter the start up world.
Build a war chest: Cash in the bank provides both security and options, and saving in times of a steady paycheque is seldom regretted in the future. Recognize that working with a start up could (and likely will) result in unexpected expenses and an uncertain income stream, so take advantage of cash flow while you have it.
Take cash flow management to a new level: Cash flow forecasts are often something that is part of an accounting education; mechanical, at best, with less emphasis being placed on accuracy and outcomes. Start ups live and die by their cash flow, and if you haven’t managed money in an environment where results are everything, expect a white knuckle ride. Take the opportunity to get some practical experience by managing your own cash flow and see how well you do.
Expect the worst: You might be wondering where the “plan for the best” portion of this phrase went; no need to mention that, as entrepreneurs have it covered! You can be a valuable resource by planning for the downside that will happen, particularly in terms of money. Be sure to build in contingencies for delays and potential customers that will change course midstream.

One of the main reasons why young businesses fail is simply because they run out of money, and this can have little to do with the quality of the product or service that they provide. Surprisingly, growth actually requires cash. Learning how to work with money in advance of having to do so is a bonus on all levels: improving your comfort level (or managing your anxiety), providing realistic information, and increasing the likelihood that the company will survive. You hold the key to ensuring that the buck stops on solid ground.

in Career / Early Stage Financing / Entrepreneurs 0 comments

June 2, 2015 by Jenifer Bartman

Getting Started: Preparing for the world of entrepreneurial adventure (Responsibilities)

As published by CPA Canada in CareerVision:

If you’ve ever come across someone who works with a start up company, chances are, they will tell you how exciting it is. The thrill of building something new, perhaps, with products and services that the marketplace hasn’t seen before, not to mention the fun associated with dreams of hitting it big. It’s not uncommon for entrepreneurs to accentuate the positive, as they view start-ups as what being in business is all about. “In on the ground floor”, “there from Day 1”, “Microsoft before it was Microsoft”, risk/reward mentality. What could be better than that?

Although working with a start up or, what investors often refer to as “early stage”, company can be an exciting place, it’s important to fully consider what’s involved before taking the leap. Those who haven’t spent much time around the start up world might be surprised to find out what the flip side of opportunity looks like. In this series, we will consider exactly that, so you can make an informed choice, and perhaps, benefit from placing a greater emphasis on developing some of the skills that will serve you well, in advance of when they’re actually needed.

In Part 1, we considered the issue of risk. Let’s move to what just might be the dark side of the start up world; the ever expanding job description.

Why it Matters

Yes, mother told you there would be days like this; that is, days that don’t end due to what seems to be an endless task list of urgent “to do” items. It’s true that early stage companies attract individuals for their particular skill areas, such as engineering, sales, and a host of technical capabilities. All of these areas are essential to developing and moving a young upstart forward. What isn’t often part of the discussion is the long list of “other duties as assigned”, which could include tasks that you might consider to be well below your pay grade. This isn’t quite the same as your corporate job; you know, the one that actually has a description.

The bottom line is that start-ups have limited resources, in terms of people, time, and money. When things need to get done, there isn’t the luxury of delegating lesser tasks to a staff group or putting up the cash to resolve it. In a world of empty bank accounts, the buck stops with those who are around what is often a small table. Running errands, formatting documents, making the coffee, or cleaning up the workspace are necessary, and although it might sound funny, it’s amazing how foreign all of this can be after spending a few years in a large, established company. And in addition to these required, but time wasting tasks, you’ve also got to get your real job done; urgently!

Get Started

Working for a start up is an adjustment; there’s no two ways about it. And although the need to pitch in and do what’s required might sound petty, it’s surprising just how much of a shift this can be from what might be the norm in the corporate or professional services world.

Here’s how to get started:

Mindset is key: The secret to doing menial things well is having the right attitude. Check yours to ensure that you’re not looking down on tasks that you might consider as “someone else’s responsibility”, but rather, taking pride in a job well done and a willingness to help. Once you do, you’ll start to notice how many people are not willing to do so.
Organize where possible: Although you can’t plan everything that will come your way, it’s amazing how much actually can be organized when you make the effort. Look at the responsibilities that you have on a daily, weekly, and monthly basis and plan how and when to get the work done. When the unexpected comes along, the majority of what needs to get done won’t get derailed. This approach is one that will serve you well wherever you go and is a tactic of the highly productive.
Set short term goals: Keeping a keen eye on what needs to be achieved in a day, for example, can be helpful in planning your time and checking in to ensure that your task list stays on track. This approach can also be used to create the “positive pressure” and sense of urgency that deadlines tend to generate, creating windows of time for completing some of the more less than stellar items.
Plan for setbacks: Start ups tend to have more than their fair share of setbacks, with lots of time being spent at Square One. Recognize this, and take progress for what it is, as there will be days when the only success you’ll be able to point to is those menial tasks. Learn that even these are worth something.

There’s a certain pride that comes from the achievement of what isn’t exactly glamorous; the marathons, the mountain climbs, the cross country treks. In order to survive the start up journey, it’s important to recognize that it’s not the quick sprint to success that entrepreneurs tend to imagine. But, like many of the climbs that have characterized your path thus far, it might just be the time of your life.

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April 2, 2015 by Jenifer Bartman

Getting Started: Preparing for the world of entrepreneurial adventure (Risk Management)

Published by CPA Canada in CareerVision

So, you want to work at a start up, or maybe, with that young company that looks like it’s going finally to raise some investment capital. What could be more exciting than that? Or, you might be at a place in your career where we’ve all been: one of seeking out new opportunities and fields where the grass is greener. But, before you leave that corporate job, there are a few things you might consider, because, well, how to put it? Working for a start up is different. Is that bad? You ask. Or, is that good? You wonder. Well, the reality is, it could be both, but really, it’s just different from the world of larger, more established organizations.

Although working with a start up or young (what investors often refer to as “early stage”) company can be an exciting place to be, it’s important to consider some of the other aspects of the opportunity fully before making the switch. Those who haven’t spent much time around the start up world might be surprised to find out what the flip side of opportunity looks like. In this series, we will consider exactly that, so you can make an informed choice, and perhaps, benefit from placing a greater emphasis on developing some of the skills that will serve you well, in advance of when they’re actually needed.

Let’s start with the issue of risk. Although risk, in general terms, can be one of those theoretical areas, when working with a young company, its existence is not only evident, it’s very much real.

Why it Matters

Start up companies, or those in the early stage of development, are usually not short of ideas, enthusiasm, and ingenuity. Their world is often one that is emerging, including new technologies, new ways of doing things, and new markets. The reality is, that although start ups can sometimes lead to success, they more often than not lead to failure (or, more gently put, a learning experience). This might sound like an obvious statement, however, many who are involved in the start up world become so focused on the opportunity that the downside doesn’t matter much. In reality, however, it is always there. A lack of experience (or attention) can result in not seeing the downside for what it really is, including the risk that is associated with it.

Get Started

One of the things about risk is that the greater you understand it, the greater the opportunity to overcome it. Too many entrepreneurs fail or refuse to acknowledge its existence, resulting in circumstances that too often cannot be overcome (and leaving many wishing they could turn back the clock). In addition, the stresses of living in a risky world, day in, day out, can be too much to bear.

Get started on the right foot by putting risk in its place from the beginning:

Seek out risk management opportunities: Risk management is a learned skill, so if you’re currently working with a large or well established organization, it can be a good opportunity to learn how to identify and manage risk. This represents valuable knowledge to address risk in future roles, and your start up partners will thank you for it.
Conduct an honest assessment: Since working with a young company could (and often does) mean uncertainty in a number of areas, ask yourself honestly if this is an environment that fits well with your lifestyle. Can you adapt to an uncertain income stream? Does moving away from a stable environment create feelings of discomfort? What will you do if the business isn’t successful? Ask the tough questions now and be mindful of both your logical and emotional perspectives.
Plan for the unexpected: In advance of moving into an environment of higher uncertainty, take advantage of where certainty does exist. Saving, completing professional development programs, and seeking out learning opportunities all can be done well in a stable environment and can be something to lean on in leaner times.
Balance risk and reward: Although it’s true that young companies can be risky places, they can also have rewards, including new experiences, an opportunity to contribute significantly, and commercial success. You might even also get the chance to own part of the company to share in future financial performance. The key point is that risk and reward should be considered in balance, as seeing a situation only for its rewards can lead to trouble.

There might come a time when a start up opportunity presents itself and must be quickly pursued, regardless of your state of readiness. Based on the inherently risky nature of early stage companies, this can be a mistake. Rather than becoming frustrated with the situation, why not get started to plan for becoming well equipped to make the leap to playing a key role in a young company? If this one isn’t right, you’ll be better positioned when the next one comes around.

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September 1, 2011 by Jenifer Bartman

Go Big or Go Home: What does it take to build a great company?

Published by the Canadian Venture Capital Association in Private Capital

If early stage companies know little about the expectations of venture capitalists (see Bridging the Gap, Spring 2011 edition of Private Capital), they probably know even less about the working relationship between the two parties post-investment. While VC’s might see the next steps as obvious (“let’s go and build a great company!”), early stage companies may be exhausted and overwhelmed from the due diligence and closing process and may simply be wishing for things to return to normal; but will their world ever be “normal” again? Most VC’s certainly hope not.

If the devil is in the details, the challenge is in the goal: taking a largely unproven, early stage business and building it into a great company. To a VC, this means the elusive “big win”; the company that grows from mere obscurity to sales of $50 million, $75 million, or more. Beyond the cash that is generated, these winning companies are leaders in their markets, innovators in their industry, and perhaps, most importantly, they share in this powerful vision of top tier growth. They too want to build a great company, and will take whatever assistance and valuable insight they can find in order to get there.

If a journey begins with a single step, where do you start? Surprisingly, there may not be a lot of magic in terms of starting the relationship with a new portfolio company off on the right path. As with the preparation for raising early stage capital, the fundamentals also matter when building a business. Although strategy is important, what can be even more critical is successful implementation (i.e., getting it done!), while being in tune with the industry and market to know when to shift gears and make the necessary changes.

Investee companies need to take the necessary steps to build the business to support future growth, and not get caught up in the status quo. And while distractions often arise, it is critical to focus on the fundamentals and the ultimate goal, a discipline that can be difficult for young companies.

As part of this process, a number of key areas require careful and consistent attention, including:

Fundamental Area	Critical Success Factors
Aligned Objectives	Management buy-in to the short term and long term objectives, as well as the exit strategy. Willingness to use experienced resources/advice to grow the company. Consistent focus on what is in the best interest of the business
Product	Focus on sustainable competitive advantage. Strong understanding of industry and market developments to guide future product development efforts. Ability to deliver new products and product enhancements on a timely basis
Market	Demonstrated ability to reach and penetrate target market(s) through an appropriate strategy (i.e., pricing, advertising, promotion, distribution, etc.). Strong focus on competitive landscape and market developments, making necessary adjustments to grow market position
Management	Management team includes those with aligned objectives, the right skills and expertise, and strong implementation skills. Problem areas are addressed on a timely basis
Financial Results & Capital Requirements	Timely and accurate financial information that is used to track progress and make adjustments where needed. Established short term budgets and long term financial targets, as well as the necessary capital to achieve results
Exit Strategy	Well developed strategy, including estimated timeline, key milestones, and exit approach. Should consider market and industry trends and outlook

Given the importance of building the business to support future growth, management may lack the experience to do so, but can gain valuable assistance from the expertise that VC’s bring to the table. In order to raise the likelihood of success: (i) management needs to be receptive of this type of assistance; and (ii) VC’s need to take an active role in providing it. Although it is a given that VC’s don’t run companies, this process can mean that early stage investors might have to roll up their sleeves more than they would like, particularly when difficulties arise. Failing to do so could result in a company that never really reaches its potential, falling well short of “great”.

Beyond providing assistance with the fundamentals, important problem areas for VC’s to play an active role in resolving include the following types of situations:

When the founder flounders Just because a CEO has what it takes to start a business and manage it in the early days does not mean that they have the skillset and desire to build a company. It’s been said that many high growth companies have at least three CEO’s during the course of their history: one to start the business, one to grow the business, and one to position the company for exit. All of these situations have a different focus and require different skillsets. Chances are that all of these skillsets do not reside within a single CEO, so a change in leadership as part of the strategy should not be surprising. It can, in fact, represent an opportunity to drive growth in each stage of development.

Where the issue can become really problematic, however, is with a CEO who is truly out of their element. This situation can be typical with early stage companies, where: (i) one of the founders was arbitrarily put in the CEO position, but clearly lacks the necessary skillset; or (ii) the investee company hired the best CEO they could afford, on a very limited or part time budget, and got what they paid for.

In any event, VC’s need to recognize situations where the “CEO has to go” and take swift action. Weaknesses at the top normally don’t turn around, and sub-par performance results in opportunity that is forever lost. Although CEO recruitment is often a time consuming process, leadership is beyond important and maintaining a poor CEO and hoping for improvement does not represent a strategy for resolving the problem or for generating solid financial results.

When financial management gets no respect Many young companies underestimate the importance of the finance function, including the critical nature of timely financial information as a management tool, as well as in terms of attracting capital. Companies with a significant technical or intellectual property component, in particular, tend to put the majority of their resources into technology or product related areas, while downplaying the need to hire a qualified Controller or CFO.

It is often up to the VC to drive change in this area, as they truly recognize just how much a good CFO can do for a company, especially when there is more capital to raise. VC’s need to ensure that companies build a finance function that can support future growth and create the necessary level of confidence to attract future investors. The bottom line is that sound financial management is always critical, and you simply won’t build a great company without the right resources and systems in the finance function.

When the culture isn’t a learning one Building an early stage business can be an isolating process and the founders and their team can become overly focused on internal activities. Growing a business requires a more balanced approach, with sufficient focus being paid to customers, competitors, and market developments, as well as to internal matters. CEO’s who tend to rest on their laurels and what they already know, without upping the knowledge ante, can be a problem, as well as a sure fire way to get stuck in the status quo. Successful businesses are always learning, from the CEO’s office throughout the ranks, and building for growth requires new knowledge and skills.

VC’s can be an important catalyst in this regard, setting expectations for CEO’s to actively network and stress the importance of continuous learning throughout the company, as well as seeking out collaborative relationships, perhaps with other investees. VC’s have almost constant access to industry events and professional development opportunities crossing their desk, and taking a moment to invite portfolio companies along can help to set these important expectations and fuel growth.

When the company needs more help than a VC can provide Early stage companies often lack the experience to address issues that arise, while maintaining forward motion. This is often the case in “business as usual” situations, so imagine how much of a skill and knowledge shortfall could occur when building a company to support significant growth. Assisting an investee company in this area could become a full time job for a VC, and that’s just not workable for the long term, given that there is an entire portfolio to manage.

Hands on advisors can be a real help in this type of situation, and VC’s should play an active role in making it happen. Early stage companies may lack the experience to fully understand the type of resources they need to assist with a particular situation, and as a result, are often not well equipped to identify the type of assistance they require. VC’s, on the other hand, have typically seen the same situations many times, understand what is needed to support growth, and can be in the best position to diagnose the problem and suggest a handful of qualified advisors who can help; they just need to make the effort to do so.

Helping portfolio companies go from good to great is not just about the big moments; it’s also about paying careful attention to the fundamentals and taking timely corrective action when needed. Setting expectations of disciplined implementation, seeking out the right resources for assistance when needed, and not tolerating sub-par performance can help to make the most of investment opportunities. It could be the difference between a breakout company and those that just plod along.

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May 1, 2011 by Jenifer Bartman

Bridging the Gap between VC’s and Entrepreneurs: A fresh look can be well worth the effort

Published by the Canadian Venture Capital Association in Private Capital

There has been plenty of talk about the state of Canada’s venture capital industry over the last few years; Are returns improving? When will fundraising levels increase? Are more deals getting done? Although the industry, like many others, moves in cycles, there are some things that seem constant: the gap between the expectations of venture capitalists and how entrepreneurs approach fulfilling these requirements is a good example.

In times of limited capital, bridging this gap to establish the necessary common ground for an investment to occur is critical, particularly for entrepreneurs. The great divide may be as simple as this: entrepreneurs often focus on building technologies, while VC’s focus on building companies. Although both aspects of the equation are required in order to capitalize on a market opportunity, why is it so often a zero sum game?

While entrepreneurs are busy perfecting existing technologies, developing new ones, and perhaps focusing on securing support for ongoing research and development, venture capitalists are focused on assessing investment opportunities in terms of key business fundamentals: Product, Market, Management, Financial Requirements and Potential, and Exit Strategy. VC’s focus on all of these areas, as each one is integral to building a business to capitalize on a market opportunity and generate growth to the point where a successful exit can be achieved. Many entrepreneurs, however, concentrate their efforts on one or two of these areas, most often the Product category. Is it any wonder that so many transactions fail to occur?

The very fact that this gap still exists makes it worthy of a fresh look. The crux of the issue is the opportunity that is lost when an investor and entrepreneur simply are not on the same page, each having different expectations and requirements in order for a transaction to occur. How often have venture capitalists mused “great product; but they just don’t have a clue about business…”? In cases like this, they might as well be speaking different languages (and, in fact, they probably are).

Entrepreneurs need to do their part; by taking the time to increase their level of business and financing knowledge and to actively listen to what a VC requires in order to move forward. Expecting the process to change and balking at the requirements is not realistic or constructive; not as long as VC’s have the money. Entrepreneurs need to make a conscious decision in terms of whether or not they are truly committed to fulfilling the requirements of the financing process and stick to it.

Venture capitalists, on the other hand, may not have the time or resources to address the areas of development within a potential investee company; and it is not typically their role to do so. However, there is much that a VC can do to positively influence and expedite this process.

Recognize the language gap: Venture capital is a complex business, and it does not take much to confuse those who do not work in the industry. Given that many entrepreneurs lack knowledge of the financing process, they can quickly become “lost” in discussions with potential financial partners. A VC might think they have been clear in their expectations with an entrepreneur and may be surprised to learn that only a small percentage of their message was actually heard. Although it may sound simplistic, making a conscious effort to communicate expectations in a plain and straightforward manner increases the likelihood that the message will be both heard and understood.

Demonstrate the fundamentals: Many entrepreneurs wonder what it is exactly that venture capitalists are looking for in an investment opportunity. Although the final analysis may be in the eye of the beholder, as much as things change, the fundamentals stay the same. Articulating the fundamentals in a clear and concise manner is much easier for an entrepreneur to absorb and fulfill. A simple table, such as the one shown here, not only can help an entrepreneur to better understand the requirements, but also to identify the areas where assistance is needed.

Fundamental Area	Items to Address
Product	Proprietary technology (i.e., patents, etc.); stage of completion (i.e., market readiness); sustainable competitive advantage; future product development opportunities and capability
Market	Demonstrated market need for the product; identification of primary and secondary markets; competitive landscape; strategy to get the product to market (i.e., pricing, advertising, promotion, distribution)
Management	Management team members; qualifications; roles and responsibilities; gaps in management team and how they will be addressed; board of directors/advisory board members; advisors under contract
Financial Requirements & Potential	Current and projected financial results (including Income Statement, Balance Sheet, and Cash Flow); schedules and key assumptions; sensitivity analysis; estimated valuation; amount of financing required and use of funds
Exit Strategy	Industry life cycle/outlook; timeline; key milestones; and exit approach

Provide clear action items: After meeting with a VC, an entrepreneur might walk away with the basic understanding that they “need to improve their business plan” in order for an investor to take the next step. In practical terms, what does this mean? Although the VC might have made reference to particular areas, the entrepreneur may simply be at a loss in terms of what they need to do to fulfill the requirement (or simply, how to start). Providing clear action items (i.e., “develop a table that summarizes competitors in the following categories”, etc.) can help create the “to do” list for an entrepreneur to fulfill what is being asked of them. Examples can be particularly helpful.

Suggest practical, hands on assistance: At the end of the day, some entrepreneurs lack the experience and focus to address the needs of a venture capitalist. Utilizing an experienced business advisor who understands both the early stage financing process and building a business can be an effective way to bridge the gap and a valuable resource when the going gets tough. An advisor with this type of experience understands both sides of the coin; in terms of where the business needs to “get to” in order to meet the expectations of the VC, and how to work with an entrepreneur to get the job done. This role can also be the translator between those who speak the language of venture capital and those who do not.

Is it worth the effort? Sure it is. Aren’t we all looking for that one great deal?

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