Surround yourself with smart people

Starting a company can be scary.  If you haven't done it before, there are many things you simply won't know how to do.  That's okay.  You're probably only a few phone calls or mouse clicks away from the answer.  That's why it is so important to surround yourself with smart people, and build that network.  This doesn't mean that as soon as you have over 500 LinkedIn contacts, or 500 friends on Facebook, that you've succeeded.  Go for quality contacts...people who have been there and done that, then leverage your professional and social networks.

The requirements of a successful start-up

After watching many start-up companies succeed or fail, I've come to the realization that the requirements of a successful start-up company these days are: 1) solid management having a great network of relationships and contacts, 2) luck/timing, and 3) a darn good product.  Expanding these a bit:  1) People solve problems.  People buy products/services.  People tell others about your product/service.  The broader your reach into your industry, and your market, the better you will be able to solve your problems and sell your products.  2)  You have to admit, timing is critical.  Hitting that market window is critical.  And in this is some degree of luck, which none of us can control.  And finally, 3) you have to have a product that has sizzle...that compels users/customers.

Taking on the big boys is a tough row to hoe

"Wow, I just thought of this great new kind of TV.  It's a great idea.  All I need to do is raise a few million, design it, manufacture it, and they will come to buy it."  Ouch.  An investor will look at you and see "risk" written all over this deal.  Unless you're a person (oops, I mean a complete team) who has a proven track record in the consumer electronics industry and is well-connected in that industry, it's a non-starter.  And even if you are such a team, you're taking on the likes of huge multi-national players who don't take kindly to competition.  "But, what do I do then?"  Firstly, if you have some great IP around your new kind of TV (or fuel-efficient engine, or new semiconductor process, or...), get it protected.  Start with a provisional patent if you're still validating the technology and/or the market, then move on to a PCT filing within a year.  Don't disclose it to anyone without an NDA.  Once you have protection, then, talk to those who know how to make your 800-lb gorillas your friends.  That is, turn your competition into partners.  These players have the ability to turn your new kind of TV into a market success.

Chemistry is important

I'm not talking about chemical bonds, but human bonds.  If you're thinking about starting a company with a friend, colleague, acquaintance, spouse(!), or otherwise, make sure you all are on the same page with respect to your vision for the company.  This includes initial product features, product roadmap, market niche, market strategy, company structure, company ownership, who's in charge of what, and a method to resolve conflicts, which inevitably will arise.  I could go on, but you get the idea.  Equally, investors look for this same chemistry, not only between the founders, but also between the investor and the founders.  If an investor gets a funny feeling about his/her interaction with the team, the potential for investment may be in jeopardy.  So be sure to start out right by building a team of entrepreneurs who are all in sync with you and are team players.

New blog to help entrepreneurs looking for investment in their start-up company

Welcome to my new blog.  I'm a private (angel) investor in the southern California area.  I've been investing in high-tech start-up companies for over 10 years and started my own company in 2004.  I've also screened hundreds of company applications for funding (by me) and provided my recommendations to various organizations such at the Tech Coast Angels, EvoNexus, etc.  I also advise and consult early-stage companies on strategies around funding, business, go-to-market, product development, and in some cases, even technology (yes, I have an MS in Electrical Engineering and still enjoy dabbling in all things technical).  Many of the entrepreneurs I meet have not even incorporated yet, or have just incorporated and now need some gray-haired advice on how to go about their business or how to attract funding.

Experience is critical.  Knowledge is critical.  In this blog, I plan to pontificate my views of how to successfully get your start-up company off the ground, funded, and moving up that hockey-stick on-ramp.  It's a wild ride.  Enjoy it!  If you want to talk directly to me, email me at timr411 -at- gmail.com.  Thanks for visiting my blog.