Fancy titles, but no worker bees...a red flag to an investor

Let's see, you have five persons in your start-up, and three of them are VPs.  Yikes, I actually saw this once.  So, who's doing the real work here?  This looks really bad from the outside, especially to a prospective investor, and indicates naive management.  In a start-up, one should only have a fancy title if (a) s/he has earned it from previous experience at that level, or (b) s/he needs it to convey decision-making authority when talking to customers, suppliers, and partners.  Oh, and if someone will join your company only if he gets the title he wants, kindly show him the door.  His priorities likely are not in making the company successful.

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.

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.