The term “serial investor” is a common term in the startup industry. These are men who have sold another company in the past and are now working on their next venture. They are able to build new startups every day and sell them for millions of dollars because of their extensive experience and knowledge.
Serial entrepreneurs have created a system that proves to be reliable. They know exactly what to do when they’re ready to start their next company. It can happen that serial entrepreneurs fail, but this is much less common than for early-stage entrepreneurs.
To increase your chances of success, I’d like to share with you my “ten commandments” that I believe every entrepreneur must keep in mind.
1. Team
Human capital is the first and most important factor that investors consider. Realize that this is much like a wedding, and you are going to spend many hours with them, so you better ensure to get along with your partners\co-founders.
It is essential to clearly identify the areas of responsibility.
2. Intellectual Property
Do not hesitate to file for a patent if you or your team are unsure whether to protect your technology.
This is your most valuable asset. Your patent will expire in twenty years. This is most likely due to technology’s meteoric progress. There will be a product/service that is more advanced than what you have today. Keep up-to-date with the world around you. You must constantly assess how your company is moving in the same direction as the market to stay relevant.
3. Competitive Advantage
To understand your competition and their offerings, first, conduct a market analysis. Then, you can focus on your strengths and the value you offer to your customers.
Before you start building your business model, talk to as many potential clients as possible. Find out what their needs are and how you can help them. This will allow you to identify conditions that you may not have considered as part of your product line, which could help you gain a competitive edge.
4. The Business Model
You are ultimately looking to make money. Once you have identified the needs of potential customers, it is time to brainstorm together the best way to maximize the company’s value. Investors want to see stable income and positive cash flow.
5. Plan to Go To Market
Once you have created your business model, you should also create a go-to-market strategy. This basically outlines how you intend to dominate the market.
You should ask yourself these questions: How do you acquire customers? Who are your customers? What is the total addressable market (TAM)? What is your penetration strategy (in different countries), and are there regulatory restrictions in certain countries.
6. Clear Goals
It is important to set short- and long-term goals. Define the company’s development goals for the following months. What are the priorities? And what is the company’s focus in the near future?
You should check at the end of each milestone whether you have achieved the goals or targets you set yourself. Your long-term goals are also important. Where will the company be five years from now?
7. Business Plan
It is likely that you are wondering what the difference is between a business plan or a business model. The business plan outlines precisely what you will do to realize your business model. If capital was raised, plan exactly what you will do with it.
This plan should be prepared before you raise your initial capital. It will help you to estimate the amount of capital you will need. Sometimes raising too much money can cause financial problems for a company.
8. Mentors and advisors who are experienced
Entrepreneurs with little or no experience are often unable to create a successful startup. This is because it can be difficult for them to learn from serial entrepreneurs who have the expertise and knowledge that could help them understand the market and predict the trends. It is strongly recommended that you consult with mentors who have had experience in the field and build a strong Board of Directors.
9. Motivation
To be successful, you must love what it is that you do. Every morning, you must wake up with a passion for your project and a determination to help your team and yourself. Think about how you can improve your company, make it more efficient, and how you can add value to your customers.
10. Timing
Timing is essential in life, according to some. Some products are better than others. You need to be objective and determine if the time is right for your product to go on the market. A little luck is always a good thing.