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How to Get Started Implementing a New Venture

New-Venture-Finance

Article Contributed by Cynthia Chen of Xperii and Brown University

In our last lessons, we’ve talked about the right reasons to start a new venture, and how innovation is extraordinarily valuable, but ultimately, the value of an idea is lost if no one takes the actions to implement them. In these lessons we’ll discuss how to actually get started with that implementation, and keep making progress every day.

Lesson VII – Start with those you know.

    In developing a new venture, there is a need to seek feedback in order to asses market reception and tailor your offerings accordingly..To obtain this guidance, many aspiring entrepreneurs aim to connect with key industry leaders in venture funding and well-known groups. These individuals and firms, however, often do not have much of an interest in early stage startups and ideas, and may even remember an unwanted email if it didn’t come with a recommendation from one of their trusted connections. So, who should entrepreneurs whose startups are still in early stages go to when seeking advice?

    Considering the unlikelihood of obtaining such valuable guidance from top-name VC firms and industry leaders without connections already in place, it is often best to reach out to your personal repository of contacts. Before one can even contemplate securing serious money—that is, sizeable seed rounds or beyond—having as much feedback and thoughts as possible about your idea is invaluable.

    Not all advice needs to come from domain experts – there is something very valuable to be gained by learning how to present your startup to generalists. More often than not, friendly connections are willing to provide feedback—be it via an email conversation, or over the phone. While investors are the deciders of funding down the road, the general opinions of friends and family can be very helpful in formulating how you convey your company and ideas as clearly as possible. Seek comments on your pitch deck, ask what needs clarification in general, and assess overall reactions from those familiar with startups, and those who are not.

    Startups require a broad range of expertise, from operations, to sales, to marketing, to finances, to manufacturing —chances are, there are people you are overlooking who can assist in providing help in many of these functional areas. Along the way, you may even be introduced to others who can assist. Meeting with as many contacts and mentors as possible can serve as a tool to help advance your idea further along its journey. And who knows? Sometimes the people you have forgotten about in the back of your mind can become key in later business development and partnerships.

Lesson VIII– Don’t take it personally.

Clearly, it is inappropriate to Google “VCs near me” and cold-call them. While you should generally have an introduction to VC firms or important contacts, there will be times when you need to take a leap of faith reaching out to an important contact with whom you have met only briefly or in passing. Oftentimes, these follow-up re-introductions will garner no reply, but they are well worth your effort. A single success can help shape real progress for your company.

Because e-mails tend to stack up quickly, many simply fall victim to being overlooked and forgotten, especially in today’s digital environment. I am sure many of us have wondered after sending an email with no response back: “Will I ever receive a reply?” Repeatedly facing this situation can make reaching out to contacts a more daunting task than it should, and an entrepreneur should not take this nonresponse personally. Remember is that you are among dozens of others who face the same situation.

While you will encounter this routine scenario over and over as you continue to develop your idea and reach out to more and more contacts and mentors alike, it is important to not to take it personally and let the lack of response to emails be a deterrent from reaching out to potential advisors. This scenario will likely play out many times before it pays off, but it’s worth it to not get discouraged – doing so could force you to miss out on your most valuable contacts.

Lesson IX– Make it personal.

    Given the rapid speed startups operate at, quick responses to your outgoing emails can make a big difference. While you can ensure the speed with which you reply to incoming mail is same-day or same-hour, the delayed replies to outgoing mail can be problematic. Having faced this particular fact (e-mails going unnoticed or ignored), there are other alternatives to raise the chances of obtaining the desired feedback or reply e-mail when reaching out to follow up with a contact.

    Today is digital. But this doesn’t mean there cannot be a personal component as well. If you connected well, picking up a phone and verbally following up is just one of these “personal” methods. Arranging for a face-to-face meeting is another. Stacks of unread e-mails get lost in the clutter; giving a reason to make the follow-up more personal often leads to better success. Engagement is a rarity among electronic messages.

    Personalized communication provides an opportunity to develop a relationship more substantial than words on a screen. Adding this personal component can provide a greater weight not only during the initial meeting or contact, but also in subsequent follow-up meetings. If the matter at hand is important enough to you (and your startup), picking up the phone and scheduling a phone meeting, or in-person one, will often produce better outcomes. Take this a step further and take them out for coffee or lunch so that they aren’t forced to burn work-time to speak with you: you’re likely to find yourself with more time face-to-face with those who can impact your startup the most.

About the Authors

Cynthia S. Chen is a junior at Brown University studying applied mathematics, computer science, and economics. She has conducted research at Boston College, MIT, and The University of Michigan in many areas including mathematical knot theory, cognitive science, computer vision, and bioinformatics. Cynthia founded Xperii, a software as a service company serving researchers who work with human subjects, and currently serves as its Chief Technology Officer.

Daniel S. Williams is a graduating Advanced-Standing Senior at Boston College in the Carroll School of Management majoring in Management, with a concentration in Finance. Daniel has previously worked at several firms and startups fostering client-interactions, handling taxes, banking and filing systems, as well as marketing initiatives. He has been a part of Xperii since its inception and has served advisory roles with other ventures.