If you can find a cure for the pain that pays for itself, a product or service that will not only relieve the pain, but will also save the customer money, then you have a horse worth riding. But once you've got your opportunity selected, you have to think of a few other things. Zschau insists that venture capitalists are sissies when it comes to risk so it is important to identify the unknown elements and reduce or eliminate them if you want financing, and surely you do. If you cannot eliminate the known risks, then take a belt and suspenders approach and prepare for as many different possibilities as you can. When Web TV's deal with Sony and Phillips to make set top boxes fell through, Steve Pearlman already had an alternate production plan in place.
Entrepreneurs face a lonely battle sometimes.
Most need backing and that often means selling shares, and therefore control, to outsiders. If the business succeeds, then everyone will want, and have, a piece of it and the founder risks losing control of her company. In order to be successful, new ventures will need leverage to gain customers and resources. But as you make deals to help grow and build, it is important to keep control of the heart of the company. Conversely, in her negotiations with partners, customers, and financiers, the entrepreneur should not be so ruthless that everyone walks away.