It would be easy to think that f3fundit launched this competition just to find a winner and give away some money. In fact the greater purpose behind this exercise was to demonstrate that there are many ventures worthy of our attention that stand to benefit and improve their chances of success through the two day workshop we put together.

This exercise was about capturing opportunities, mobilising resources and achieving results because we need more success, greater access to talent, more ideas to see the light of day and more value creation.

In the process we learnt some valuable lessons from the generous contributions given by our team of experts that have set up countless businesses between them. So much so we think these secrets need to be shared:

Firstly, the most important lesson to learn as an entrepreneur with an early stage venture is that your quite brilliant plan will always need changes and you must be willing to adapt as you move between planning, engagement and execution. Ongoing innovation is vital to your success and it is natural to go from plans A, to B, to C – in fact 86% of vested business plan submissions by (US) VCs are adapted one way or another.

Secondly, work on your business model not just your business plan! That means your valued customer, value proposition, value chain, profit engine (yes even if you are non-profit!), and protection. Doesn’t matter if you are the next Mango, iPad or Cirque du Soleil you need to focus on the right segment, clients, partners, risks, revenues, etc. How do you protect yourself? Through patents, brands and core competencies.

Thirdly, if you plan to be international then don’t just replicate what you are doing in one country, make allowances for cultural differences, empower the local partners and employees to manage and develop your brand and services but retain control. Eventually, you may even realise that people are identical to work with in spite of their differences.

Fourthly, capital is basically for 3 things, start-up costs, operating losses and working capital. If you look at the balance sheet this translates to investment in fixed assets, necessary funds for operations and a sufficient cash buffer. Further, as an entrepreneur negotiating with investors you must be aware of what impacts your personal wealth. This comes down to valuation, liquidation preferences (never more than 1x so negotiate!), accrued dividends (watch these), and anti-dilution – it is worth knowing that 1/3 of VC investment in the US is a ‘down’ loan.

Lastly, always, always get a good lawyer to guide you through these contract negotiations.

More lessons to come in our next instalment and take a look at our resources page for updated recommendations on content you should download or read!

BY F3FUNDIT

Entrepreneurs are definitely a special breed, this is motivation, personality as well as a number of additional factors. So before you or someone you know wants to jump in and tackle the world, we recommend gauging your personality to see if you possess any of the critical success factors that make up an entrepreneur.

ENTREPRENEURIAL CRITICAL SUCCESS FACTORS

1. Belief in success – if you doubt yourself, if you don’t think you can do it, climb up a mountain and conquer the world, or if you don’t have somewhat megalomaniacal expectations of yourself and understand that accomplishing event half of those expectations will mean success to others, read no further and go get a 9-5 day job.

2. Possess valuable practical world experience – you may have a great idea, but having real world experience is vital, schools can only teach you so much, and this experience will often mean sink or swim for your enterprise. Furthermore, you should always be getting this experience, before your venture, during it, and after.

3. Be unusual and unconventional - Let’s face it, normal never got anywhere. Are you unusual, quirky, do you visualize the world in a unique and peculiar way? Great. This factor is key to you identifying opportunity.

4. Embrace risk and failure – The majority of the population is risk averse, they don’t like it because it means, possible failure and people are afraid of failure because of the way it will be perceived by others. But what is failure other than a great learning experience?

5. Want to leave the large Co. behind – If you like the large company, the security of belonging to someone on a fortune something hundred list, then Entrepreneurship is not for you. Entrepreneurs are independent thinkers, they are leaders, not followers.

6. Think like or belong to a society where above normal expectations are welcome – If the expectations in your society are to get a comfy job, because that comfy job provides security, and better yet it’s a government job. You’ll have a a harder climb than someone who belongs to a society that encourages risk taking. See how your societal culture holds up, if need be, leave.

7. Be ambitious – If someone tells you you’re thinking too big, maybe you’re not thinking big enough. As innovation is the mother of invention, ambition is the mother of innovation, and even though the developers of some new iPhone app will tell you it’s the next most innovative thing since sliced bread. It probably isn’t. Real innovation sprs positive change, be ambitious, think you can change the world. Do you?

And we’ll close this with words from one successful entrepreneur, Sidney Pulitzer, who started an undergraduate entrepreneurship course at Tulane University with the following opener.

“95% of the people on this planet have no clue what the hell is going on, out of the other 5%, 3% do know what’s going on, but they’re too God damn afraid to do anything about it. Those last 2% boys and girls, they’re the movers and shakers, so take a moment and ask yourselves. Where do you belong?”

So… where Do you belong?