Our recent post on why entrepreneurs need to think about business models and not just "ideas" featured one question that any investor is going to ask :
If I believe in the business you are proposing, why should I believe that you are the ideal person/team to build it for me? Would I be better off investing in the business model with someone else?
This question almost always hits an entrepreneur in the gut. Entrepreneurs put a lot of emotional energy and sweat equity into "the idea." This often causes them to believe they are entitled to the idea because they thought of it first. But they don't think about it from the investors' perspective. The investor just wants to make money on the idea and wants to put in place the best team to do that.
In response to the article, reader Joseph Simbar posed a few questions:
What if you don't have any credentials? Because I know saying "I'm passionate" is not enough. What if you graduated pretty high from the class, but not from an Ivy? Or what if you have work experience but it's not in Google, IBM, or Forbes 500 companies? What can you "show off" in this instance?
If you don't have the "credentials," then consider bringing other assets to the table:
In our view, it's more helpful to flip the question around. In building your business concept, what do you need to do to enhance the value of the business model to the investor and how can you contribute to that? The investor still may have control over your ability to build the business, but you should be able to position yourself as their valuable partner in making the business a reality.
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