Entrepreneur Mentoring Secrets

This topic for those of you with experience under your belt in guiding others to success.

I have been an Entrepreneur Mentor (EM) now for over two years. This doesn't count my 10+ years in Entrepreneurship. Becoming an EM is a natural progression for self made VC's or Angels. I have currently invested in 8+ ventures. Here are some of the amazing lessons learned:

1. Plant the seed and wait!
The most important element that an EM must understand is each Apprentice (Entrepreneur) takes a different amount of time to get IT! Entrepreneurs have egos in differing levels which seem to directly relate to the time it takes for them to get IT! So what is IT? IT in this case means the idea we EM's put in their head.

I always plant a seed in my Apprentice Entrepreneurs by asking them 1-5 questions carefully designed to get their brain processing the idea I need them to have. Eventually they get IT and their new idea is presented; to which I congratulate them on their great idea or epiphany without ever taking credit for planting the seed.

Most eventually catch on to my process and confront me as the one who planted the seed, especially when my predictions are 100% correct. No matter, the satisfaction for me comes in the form of their success, not my ego.

2. Communications is critical.
Learning to communicate where many different personality types can understand what you are talking about or asking of them is extremely important. I often find myself pausing to get the right words out to effectively communicate my thoughts and recommendations to my Apprentices. If you can't effectively communicate your thoughts, you can't plant the seed!

It is not wrong to ask your Apprentice what they understand so far as to correct your communications to help them better. Sometimes you have to remind them that the more they listen, the faster they will meet their goal.

3. Credibility issues.
If you have ever been a VC or Angel who has recognized a good venture without the Founders knowing who you are, then you what it is like discussing their venture without the credibility your normal VC process allows. Basically they don't know who you are and don't care!

The best way to deal with this is to play hard to get. Don't be afraid to walk out in a meeting for effect. Normally I would scorn such theatrics, but in this one case, it is the most efficient way to begin the credibility generating process. Example:

I recently had a meeting with 4 people, one was the Mayor of a small city, the other 3 were trying to get me to invest in their lounge. They thought bringing the Mayor to the meeting would impress me and give them the ability to dictate terms! 20 minutes after the introductions when I noticed they were posturing as the advantaged party (good technique on thei part) I stood up and proclaimed that I did not see the financials painting the same picture as them (they weren't). I then walked out.

The leader of the group (another way to identify this person) stopped me in the hallway and asked what the deal was. I told her that they had no idea of how to generate customers for this new business. No Investor would touch them. I added that I was insulted by them wasting my time. I never really get insyulted, but it helps to state the insult sometimes.

When I returned to the meeting after getting a cup of coffee, the tone was completely different. They just wanted to listen to what I had to say. I finished the meeting by explaining the importance of an action plan, not a business plan.

They never realized I was guiding them to a better process, rather they felt I was just another investor with his process. What I knew they didn't; I was the only Investor of 8 who took the meeting.

I have been been in such discussions as well (as Investment Angel). Most entrepreneurs seem to have much focus on the product. But as many here on this forum have stated, the product is secondary, the customer acquisition plan is most important and then the keeping of those customers.

What is a company without buyers? Nothing more than fancy stuff.

Hey fanocks,

How are you these days? It has been a while since I posted.

These days I have adopted the term "Action Plan" to describe to new Entrepreneurs how to approach us for investment. I did start using the term before Guy Kawasaki's book, but he probably heard from the same sources as me.

It has begun to annoy me how many Entrepreneurs these days give up as soon as I explain to them "We only care about what you are going to do to get customers. Our projections Analysts can provide far superior results than yours, just tell us what steps you are going to take to get your customers before spending too much money."

Way too many say it is impossible or they don't know how to accomplish what we ask. I am usually the one that sends them packing, so I end up the bad guy. Hopefully they will learn.

I think more of these people need to see and learn from Dragon's Den(po'd that it is no longer on my free On-Demand ).

I've seen some great products, one of which I had an idea for, called the "Spider Grab Rake", it was basically a rake that swept and grabbed leaves, great idea, but the inventor didn't have a good sales plan and thus left with nothing.

Now if he went up there and said "I have X dollars/pounds in signed purchase order agreements, pending delivery" then it's a whole new ballgame