On ABC’s reality pitch show “Shark Tank,” nothing infuriates Mark Cuban more than what he calls “want-repreneurs” — adventurous spirits who like to come up with ideas, but don’t understand anything about business. Wantrepreneurs try to start businesses that in the middle of the night they conclude “OMG THIS IDEA IS A GREAT BUSINESS!!” and never end up accomplishing anything.
Real entrepreneurs will first validate their ideas to see if the idea works in the real commercial world. In regular “brick and mortar” businesses, most people fail because they have the wrong location, not enough capital, the wrong idea, etc. There are a million factors that can influence the success or failure of a business.
No matter what type of new business idea you have, you need to learn to validate your idea. Many start up mentors advise not to start a business, but solve a problem.
But be aware, you still need to do some real validation, otherwise you might just build a mousetrap using the “We Build, They Come” mentality. This is a sure-fire way to fail.
You can learn and learn, but if you don’t implement, it will mean nothing. And here possibly lies the red herring for business failure, failure to prepare and take action.
“It’s not in the dreaming, it’s in the doing.” Quote From Billionaire Mark Cuban
So even after preparing well, creating a business plan, and validating your new business idea, if you are ready to start pitching for capital to fund your startup, here are some fatal flaws VCs are quick to spot when they get pitched.
Validating your is so important, I have another resource for first time entrepreneurs that will give you a little more insight. Here is an article titled, “First Time Entrepreneur: Ask Yourself These 20 Questions To Validate Your Startup Idea” written by Sujan Patel for @Forbes
Here is my short list, fatal flaws VCs are quick to spot:
- You can’t scale a business?
- Do you have the emotional maturity to build scalable company?
- Why bother pursuing, or pitching, a copycat idea?
- Are you piggybacking on an existing technology?
- Can you demonstrate a clear track record of moving the ball in your past endeavors?
- Proof in the Pudding, no prototype of your product and beta test it, you’ll probably get a lower valuation.
One From Mark Cuban:
- “Wherever I see people doing something the way it’s always been done, the way it’s ‘supposed’ to be done, following the same old trends, well, that’s just a big red flag to me to go look somewhere else.”
Good Luck on your path to become a real entrepreneur!
The secret of getting ahead is getting started. – Agatha Christie
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