Five lessons experienced entrepreneurs have learned

20 Oct

The number of young, successful and hard-working entrepreneurs are not limited. CEOs  such as Mark Zuckerberg, Andrew Mason and Tim O’Shaughnessy have demonstrated youthful determination and innovation with their creative minds.Yet, in 2010, entrepreneurs aged 35 to 54 were responsible for over 50 percent of total new entrepreneurship activity in the U.S, according to the Kauffman Index of Entrepreneurial Activity. Individuals aged 55 to 64 also made their mark, representing 22.9 percent of new entrepreneurs in 2010, compared to 14.5 percent in 1996.

Older and wiser entrepreneurs have learned valuable and crucial lessons from their careers.

Follow-through is essential

Nearly 1,000 startups raised $7.5 billion from venture capitalists in the second quarter of 2011, up 19 percent from the first quarter this year and 61 percent from the same period in 2009, according to the National Venture Capital Association. But the success rate of first-time ventures was only 20.9%. One should not let their mind looking at grim appearance of economic outlook. Experience gives the vision for success.

enthusiastic and passionate team

Experience helps in building right team. Inspiring the team not to give up brings success a little nearer. Very often, the team consists of over-skilled executive and inappropriately scaled for the size of the business. Build a team which consists of members with perseverance and with who sticks to the business at crucial moments, facing its ups-and-downs.

Balance is critical

New ventures often follow an extremely lean operating model – too lean in fact. To a certain extent, you need to pay for play to capture greater market share. Raise sufficient capital and allocate the appropriate resources to expand your business. Seek to achieve the right balance; don’t be afraid to adjust your business plan depending on market conditions.

It pays to think like an investor

Venture capitalists alone evaluate hundreds of presentations a year. One undoubtedly need a brilliant idea that addresses a market need to spark interest, investors also fix their faith in the executive team.  Experience helps you to build relationships with your target investor group, and identify the right choice of capital to raise for your venture. It may take time, but strong relationships help you expand your resources and understand how to raise capital and who to raise capital from.

Listen and learn

Listening is a virtue for a reason. Entrepreneurs concentrates on selling, communicating and convincing. The investors can also act as an adviser, speaking about success & failure, ups & downs, than merely being an financial backers. Finding mentors and leaders would help to reach the path of success in entrepreneurial journey.

Entrepreneurs are a vital part of the economy, so hold fast to your vision, be flexible, and persevere through failure and fluctuating market conditions. It will pay off in the end.

Source: venturebeat

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