Entrepreneurs: Try to "kill" your new venture before you start

Intermediary transaction http://www.aliyun.com/zixun/aggregation/6858.html ">seo diagnose Taobao guest cloud host technology Hall

Lead: Joe Dwyer explains that if you did everything possible to kill your company, but did not succeed, it does not mean that your company is stable.

George Deeb, managing partner of Red Rocket Ventures, a consultancy in Chicago, has published an interesting view that entrepreneurs are trying to do something that "kills your company," as the article reads:

Recently I had the opportunity to participate in an investment event with founder Equity Fund's investor Joe Dwyer, who, facing a lot of entrepreneurs, expressed the idea of "trying to kill your new venture."

My first reaction was that it was ridiculous for the entrepreneur who was trying to be successful. But Joe Dwyer explains that if you did everything possible to kill your company, but didn't succeed, it's not that your company is solid.

So this is a very philosophical remark, but what does it mean? I think it's about being an entrepreneur, testing and exploring all aspects of your business, looking for potential vulnerabilities that could be detrimental to your business, or in turn giving your competitors a chance. So specific you can think about these questions.

Is there a problem on the macro scale? VC not interested?

If the industry is not big enough, then investors will not be interested in, they are not attractive.

Is there a competition problem? Does the price have no advantage or is there a problem with the product quality?

For companies in the same field, investors prefer to start early or perform well. Because after all, the amount of investment is limited.

Is there a management problem? is the team now OK?

Investors like to invest in experienced entrepreneurial teams, hoping that these people have worked together for a while.

Is it a matter of turnover? Is there a reliable business model that can be scaled?

Entrepreneurs need to show investors their profitable plans, with very real market demand.

Is there a problem with high costs? can each user continue to create value?

Investors want to invest in the cost, can quickly get the return, so the whole plan to be realistic.

Are there any technical problems? Will it be easily replicated by others?

The higher the barriers in your field, the easier it will be to invest.

Are there any personnel issues? Is it easy to find people in this industry?

Investors prefer a streamlined team configuration and a scalable technical advantage.

Do you have enough money to test your market capacity?

Make sure your business has enough market space, and that the less investment you need to test, the better.

Are there any investment problems? Is it easy to get 10 times times the benefit?

Entrepreneurs need to explain clearly to investors how to get out of the market and what they expect to gain.

These are the problems that are used to test your startup, and the founders would do better because your competitors would.　Win the competition, your business is really starting. (via TNW/fast carp)