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!