Connect with us

Opinion Editorials

How young entrepreneurs can pave the road for future investment

(Business Finance) Young and new entrepreneurs can do quite a bit to prepare for a potential investment, and we’re not talking about preparing a pitch.

Published

on

ask for more

ask for more

“How did you get them to invest?”

Last week I was back in my hometown of Medford, OR. It’s one of the best kept secrets anywhere. After catching up with a friend, he asked, “How did you find your investors, and how did you get them to invest?” It’s a question that I get a lot.

Here’s my answer: be someone worth knowing. I don’t know all the secrets to this, but I can share a few things that I’ve done to make myself someone that other people want to know.

bar

Do amazing things

If you want to be someone worth knowing, you have to do things above and beyond. I stay in touch with some people because we’re friends and I’m interested in their lives. I keep in touch with other people because they’re going places and I want to make sure we’re friends when they get there. If you’re doing Netflix marathons and partying it up regularly, it will be difficult to be someone worth knowing. Use your younger years to work your tail off.

No matter your job, be the best

My first job during college was as a quality assurance intern. I knew that I wanted to get into tech and this seemed to be my only option at the time. Most interns at this company were watching YouTube videos and Facebook while our boss wasn’t looking (which was most of the time).

At one point, the company was close to running out of money. Our company fired almost everyone in the quality assurance department because we had to downsize. At the last hour, the company received more funding, but they decided to keep only one person from the quality assurance department. I was fortunate to be that person.

As a freshman college student they made me the manager and asked me if I could handle it with my school schedule. I told them I could.

If you don’t know how to do something, do it. In today’s world, I believe you can learn just about anything if you work hard enough. The resources are everywhere. When asked if I could swing managing with school, I had no clue what to do, but I said I could and I worked like a crazy man during work and outside of work to get it done. Failure just wasn’t an option.

Ask for more

While working full time and going to school full time, I made it clear to my boss that I knew my future wasn’t in quality assurance. I needed to start developing other skill sets for my future career.

He agreed and put me on track to get into product management with the understanding that I’d initially have to do that work in addition to my role managing our quality assurance department. I jumped all over the opportunity and went into product management full-time within a few months.

Doing these things will help you be someone worth knowing. Successful people like knowing successful people.

When you approach investors, and your previous boss at a phenomenal tech company wants to invest in your company then you’ve done something right. It’s going to be difficult to have a serious conversation with a 50 year old investor when you, as a 25 year old just out of college, are talking about how you’ve got this great idea and are currently a barista at Starbucks with no track record of significant successes – Starbucks baristas, please prove me wrong!

Network, network, network

Once you are someone worth knowing, your network will pay off big time. Case and point: Last October, I was connected with an investor. We had a 30 minute conversation about my company.

He then said, “Jordan, to be honest, I was going to invest unless you turned out to be a complete idiot. Mike and I have made a lot of money together. If he sends me a deal and speaks highly of the entrepreneur, I do it.”

That same investor brought in another investor that put in money without me ever having to speak with him. That’s the power of great investors and a great network.

Great networks start with little ones

When I first moved to Austin in January of this year, I literally knew three people here, two were family and one was a friend from high school. Before I left Utah, I asked around in my network for connections in Austin. Only one had any connections. That person sent eight intro emails.

From those eight emails I met with over 25 people and secured funding from two of the best firms in Austin. You grow a network like you grow a business, one day at a time, but it has to be a priority.

An archaic but useful move

My last point on networking: Consider a handwritten note. This may sound archaic, but when it comes to these rich people that have everything, you’ll find that you have little to offer that they don’t already have. A handwritten note shows class. A handwritten thank you note expresses gratitude that a text message just can’t convey.

Put in the effort first

From what I’ve seen, investors want to see entrepreneurs that have already put a ton of effort into their business before approaching them for money – no, 20 hours on a slide presentation doesn’t count.

Investors will ask you hard questions. It’s okay to say “You know what, I’ve never considered that before. I’ll research it and get back to you.” Of course, you can’t say that to every question they ask.

You need to know your industry, competitors, revenue models, businesses that have failed in this space, differentiation, market size, marketing channels, sales channels, and more.

You better have your MVP

In addition, for most tech companies, you need to have at least a MVP (minimum viable product) with some traction when approaching investors. Investors today want to see traction. To be honest, if you can’t hack together a product that you claim to be passionate about, then I don’t think you should be starting a business, and I think you’ll struggle to raise the capital you’re looking for.

The takeaway

That’s my advice to young entrepreneurs on what you can start doing now that will win you the investment when the time is right. If you get started with these principles early, I believe you will find the fundraising process to be much easier.

Most recently Jordan was the Co-founder and CEO at Unbill - a FinTech startup that was acquired by Q2ebanking (QTWO) in January of 2017. Before that, Jordan was an early employee and product manager at NextPage which sold to Proofpoint (PFPT) in December of 2011. Jordan is happily married and has 3 children.

Continue Reading
Advertisement
2 Comments

2 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Business Finance

How to survive a recession in the modern economy

(OPINION EDITORIAL) Advice about surviving a recession is common these days, but its intended audience can leave a large gap in application.

Published

on

recession squeeze

There’s no question of whether or not we’re in a recession right now, and while some may debate the severity of this recession in comparison to the last major one, there are undoubtedly some parallels–something Next Avenue’s Elizabeth White highlights in her advice on planning for the next few months (or years).

Among White’s musings are actionable strategies that involve forecasting for future layoffs, anticipating age discrimination, and swallowing one’s ego in regards to labor worth and government benefits like unemployment.

White isn’t wrong. It’s exceptionally important to plan for the future as much as possible–even when that plan undergoes major paradigm shifts a few times a week, at best–and if you can reduce your spending at all, that’s a pretty major part of your planning that doesn’t necessarily have to be subjected to those weekly changes.

However, White also approaches the issue of a recession from an angle that assumes a few things about the audience–that they’re middle-aged, relatively established in their occupation, and about to be unemployed for years at a time. These are, of course, completely reasonable assumptions to make…but they don’t apply to a pretty large subset of the current workforce.

We’d like to look at a different angle, one from which everything is a gig, unemployment benefits aren’t guaranteed, and long-term savings are a laughable concept at best.

White’s advice vis-a-vis spending is spot-on–cancelling literally everything you can to avoid recurring charges, pausing all non-essential memberships (yes, that includes Netflix), and downgrading your phone plan–it’s something that transcends generational boundaries.

In fact, it’s even more important for this generation than White’s because of how frail our savings accounts really are. This means that some of White’s advice–i.e., plan for being unemployed for years–isn’t really feasible for a lot of us.

It means that taking literally any job, benefit, handout, or circumstantial support that we can find is mandatory, regardless of setbacks. It means that White’s point of “getting off the throne” isn’t extreme enough–the throne needs to be abolished entirely, and survival mode needs to be implemented immediately.

We’re not a generation that’s flying all over the place for work, investing in real estate because it’s there, and taking an appropriate amount of paid time off because we can; we’re a generation of scrappy, gig economy-based, paycheck-to-paycheck-living, student debt-encumbered individuals who were, are, and will continue to be woefully unprepared for the parameters of a post-COVID world.

If you’re preparing to be unemployed, you’re recently unemployed, or you even think you might undergo unemployment at some point in your life, start scrapping your expenses and adopt as many healthy habits as possible. Anything goes.

Continue Reading

Opinion Editorials

How strong leaders use times of crises to improve their company’s future

(EDITORIAL) We’re months into the COVID-19 crisis, and some leaders are still fumbling through it, while others are quietly safeguarding their company’s future.

Published

on

strong leaders

Anthony J. Algmin is the Founder and CEO of Algmin Data Leadership, a company helping business and technology leaders transform their future with data, and author of a new book on data leadership. We asked for his insights on how a strong leader can see their teams, their companies, their people through this global pandemic (and other crises in the future). The following are his own words:

Managers sometimes forget that the people we lead have lives outside of the office. This is true always, but is amplified when a crisis like COVID-19 occurs. We need to remember that our job is to serve our teams, to help them be as aligned and productive as possible in the short and long terms.

Crises are exactly when we need to think about what they might be going through, and realize that the partnership we have with our employees is more than a transaction. If we’ve ever asked our people to make sacrifices, like working over a weekend without extra pay, we should be thinking first about how we can support them through the tough times. When we do right by people when they really need it, they will run through walls again for our organizations when things return to normal.

Let them know it’s okay to breathe and talk about it. In a situation like COVID-19 where everything is disrupted and people are now adjusting to things like working from home, it is naturally going to be difficult and frustrating.

The best advice is to encourage people to turn off the TV and stop frequently checking the news websites. As fast as news is happening, it will not make a difference in what we can control ourselves. Right now most of us know what our day will look like, and nothing that comes out in the news is going to materially change it. If we avoid the noisy inputs, we’ll be much better able to focus and get our brains to stop spinning on things we can’t control.

And this may be the only time I would advocate for more meetings. If you don’t have at least a daily standup with your team, you should. And encourage everyone to have a video-enabled setup if at all possible. We may not be able to be in the same room, but the sense of engagement with video is much greater than audio-only calls.

We also risk spiraling if we think too much about how our companies are struggling, or if our teams cannot achieve what our organizations need to be successful. It’s like the difference in sports between practice and the big game. Normal times are when we game plan, we strategize, and work on our fundamentals. Crises are the time to focus and leave it all on the field.

That said, do not fail to observe and note what works well and where you struggle. If you had problems with data quality or inefficient processes before the crisis, you are not fixing them now. Pull out the duct tape and find a way through it. But later, when the crisis subsides, learn from the experience and get better for next time.

Find a hobby. Anything you can do to clear your head and separate work from the other considerations in your life. We may feel like the weight of the world is on our shoulders, and without a pressure release we will not be able to sustain this level of stress and remain as productive as our teams, businesses, and families need us.

Continue Reading

Opinion Editorials

Declutter your quarantine workspace (and brain)

(EDITORIAL) Can’t focus? Decluttering your workspace can help you increase productivity, save money, and reduce stress.

Published

on

decluttering

It’s safe to say that we’ve all been spending a lot more time in our homes these last few months. This leads us to fixate on the things we didn’t have time for before – like a loose doorknob or an un-alphabetized bookshelf.

The same goes for our workspaces. Many of us have had to designate a spot at home to use for work purposes. For those of you who still need to remain on-site, you’ve likely been too busy to focus on your surroundings.

Cleaning and organizing your workspace every so often is important, regardless of the state of the world, and with so much out of our control right now, this is one of the few things we can control.

Whether you’re working from a home office or an on-site office, take some time for quarantine decluttering. According to The Washington Post, decluttering can increase your productivity, lower stress, and save money (I don’t know about you, but just reading those three things makes me feel better already).

Clutter can cause us to feel overwhelmed and make us feel a bit frazzled. Having an office space filled with piles of paper containing irrelevant memos from five years ago or 50 different types of pens, has got to go – recycle that mess and reduce your stress. The same goes with clearing files from your computer; everything will run faster.

Speaking of running faster, decluttering and creating a cleaner workspace will also help you be more efficient and productive. Build this habit by starting small: try tidying up a bit at the end of every workday, setting yourself up for a ready-to-roll morning.

Cleaning also helps you take stock of stuff that you have so that you don’t end up buying more of it. Create a designated spot for your tools and supplies so that they’re more visible – this way, you’ll always know what you have and what needs to be replenished. This will help you stop buying more of the same product that you already have and save you money.

So, if you’ve been looking to improve your focus and clearing a little bit of that ‘quarantine brain’, start by getting your workspace in order. You’ll be amazed at how good it feels to declutter and be “out with the old”; you may even be inspired to do the same for your whole house. Regardless, doing this consistently will create a positive shift in your life, increasing productivity, reducing stress, and saving you money.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!