Additionally, there are never strategic investment partners brought in for a share of equity. It is not likely that a prominent and experienced venture capitalist can guide a founder with knowledge, advice, and high-profile introductions. Professional networking is not part of capitalism.
Finding investors..
- Thread starter juicebox
- Start date
Additionally, there are never strategic investment partners brought in for a share of equity. It is not likely that a prominent and experienced venture capitalist can guide a founder with knowledge, advice, and high-profile introductions. Professional networking is not part of capitalism.
Did you read my post?
And you don't think those companies were on 8-9 figure values before the stock market came in?
No offence meant, honestly, but what's your definition of entrepreneurship? IMO, you can run a successful business without being an entrepreneur.
Read what I said earlier, both in this post, and the post earlier on this page.
Hmm, anyone care to pull out a dictionary so we can begin to understand what this thing called an 'entrepreneur' is?
Very early on is the least important time for an entrepreneur to receive capital. Most markets have extremely low barriers to entry and break-even points and be reached through basic bootstrap funding. Most businesses are profitable at a small scale and have their margins shrink over time. That's why there is rarely a rush for growth that would necessitate equity funding.
With increased size does not come increased purchasing power. It is rare to get a lower rate from your suppliers as your sales figures grow.
Developing a prototype, particularly a tangible prototype, usually requires engineers. These engineers should be paid by the entrepreneur until the prototype is developed. Then, the entrepreneur should fund the Series-A round where the marketing and demoing of the prototype can begin. Finally, the entrepreneur will provide the money for the Series-B round to manufacture the prototype and bring it to market. This is the most fiscally responsible decision for modern entrepreneurs.
The entrepreneur will not have problems purchasing from suppliers or negotiating with vendors using this method.
The point of that post, which you missed, was that words change their meanings over time. When I think of love now I think of it differently than I did when I was seven, and I'll think of it differently when I'm seventy than I do now.
You're splitting hairs talking about definitions, what you're looking for isn't an English lesson what you're looking for is a confirmation that someone with low capital can still succeed in an ever growing competitive world.
It's a completely natural thing and every person in business has at one point felt that same way. I still feel it every time I buy a stock or an investment property when multi-million or multi-billion are in indirect competition with me buying and selling.
The reality you have to face is your ideal is something that simply doesn't occur often in the real world.
...Don't be afraid or discouraged by investors or the complexities of business at a higher, or more difficult level, than what side of the industry you're on. Embrace that companies like Google, YouTube, etc utilized their vision along with money to succeed in a big way.
My Grandfather always used to tell me, "Money isn't the main thing, but it sure is nice". Your idea, vision, plan, or whatever else you want to call it needs to be there... and in some cases, as many of us here can attest, you don't need outside capital. But no one here worth at least a few bucks will tell you that having money couldn't of quickened the process and made them succeed and grow at a rate faster than they could completely self funding themselves.
To answer your question though my definition of an entrepreneur (keep in mind that there is really no concrete meaning for any word, they are always ever changing) is someone who takes a risk regarding a new venture, business, idea, etc and uses every possible situation and asset at his or her disposal to further that venture, business, idea, etc.
All you're missing is that last part. The, as you say, true entrepreneurs of this world are those who had a business, venture, idea, etc and crushed all competition in their way by making strategic partnerships, accusations, etc and of course bringing on investors to fund those items.
Look at any billionaire or millionaire worth a substantial amount and 100% of billionaires and 90%+ of those millionaires at some point raised capital and/or made strategic business partnerships to further themselves.
Think of it like Justin Bieber... if he made YouTube videos, became a bit popular, sold a few CD's, told record labels to fuck off for the reasons you give above, made a few more CD's (all self funded) how far would he be?
Instead he gave up some of his future earnings to partner with Usher and has blown up to a degree that only a few have ever reached. He makes 300k a performance, and that would never have been possible without cash infusions and partnerships.
Ironically the same thing happened with Usher. Get where I'm going?
Not just equity funding but all forms of funding including bonds/loans. It does not make sense to invest money on a project that returns Y if capital can be borrowed for <Y.
And the award for the most idiotic and BLATANTLY FALSE statement in this thread goes to?!?! (DRUMROLL PLEASE.....)
Yeah man I've got this great business plan.
All of our funds are spent promoting something that one company provides while an agency sits between us and collects a sizeable chunk of the earnings.
Neither of these "partners" assume any risk whatsoever and the middleman agency does all of its own bookkeeping with no oversight.
It's generally accepted that all of them skim as much off the top as they please and it's impossible to prove.
The same promotion opportunity that is provided to us is provided to literally anybody who wants to compete with us. There is guaranteed to be an ever increasing amount of competition and an ever decreasing return.
WHO WOULD TURN DOWN THIS INCREDIBLE OPPORTUNITY?????
All of our funds are spent promoting something that one company provides while an agency sits between us and collects a sizeable chunk of the earnings.
Neither of these "partners" assume any risk whatsoever and the middleman agency does all of its own bookkeeping with no oversight.
It's generally accepted that all of them skim as much off the top as they please and it's impossible to prove.
The same promotion opportunity that is provided to us is provided to literally anybody who wants to compete with us. There is guaranteed to be an ever increasing amount of competition and an ever decreasing return.
WHO WOULD TURN DOWN THIS INCREDIBLE OPPORTUNITY?????
-joe-,
Please save yourself some dignity and quit while you're ahead.
It's obvious you know jack shit about entrepreneurship, you have $10 in your name and you talk like you're Mark Zuckerberg when he turned down Yahoo's $1b offer because "true entrepreneurs" don't need outside investments.
Laughable at best.
Please save yourself some dignity and quit while you're ahead.
It's obvious you know jack shit about entrepreneurship, you have $10 in your name and you talk like you're Mark Zuckerberg when he turned down Yahoo's $1b offer because "true entrepreneurs" don't need outside investments.
Laughable at best.
Entrepreneurs do sometimes needs other peoples money, especially if they want to grow their business at a more rapid rate than boot strapping it themselves.
Any savvy investor is going to require a business plan which is going to include a detailed explanation of the entire business model, including financials, competition, barriers to entry, marketing plans, executive summary etc etc.
I hope that I am not stating the obvious but the first step is to set up a company, most likely an LLC that will detail investor shares, options, and of course standard legalize' that goes into any articles of incorporation. Oh and don't forget that you will also require an operating agreement to go with it.
It is a lot of work when you go this route but the marketing plans and business plan are something you should be writing for yourself anyways so that you have a blueprint for success.
Good luck, head down. Let us know how you make out