Oh Yes He Did: What My Business Partner Said to an Angel Investor

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I guess you could say my business partner John and I were a little green behind the ears when we started out. We had a great idea, and the determination to make it into a viable business...but neither of us had any formal business training. So we relied a lot on other people to help us flatten out the learning curve. I guess we believed that if we sought out the right people, everything would just fall into place and we would secure our rightful place as the next Google. What we did not realize at the time is that the majority of the people who advised us had similar ideas about what a successful business looks like. One thing that we heard time and again is that if you want your company to take off, you have to get some serious investment. Accordingly, we put a lot of time and energy into fundraising. Then, during an intensified campaign to find angel investment, something happened that changed everything.

Much to my delight, we were able to secure a meeting with a successful entrepreneur turned Angel Investor with an incredible track record. Upon delivering our well rehearsed pitch he proceeded to explain his program. Then we got into a conversation about how VC and angel investment works. His comments provoked John to blurt out, Betting on a bunch of companies without any proof of concept sounds like a crap shoot. What kind of idiot would do that?" My face turned bright red as I waited for the Angel's reply. "I do" he said. We all had a good laugh and then the Angel proceeded to tell us how his most rewarding venture was the one he started with blood, sweat, tears, and a good credit line. I agree 100% with my business partner, and since we are no longer in the a** kissing business of fundraising, I can say without hesitation it seems the entire system is setup so that people/entities with money can exploit entrepreneurs with great ideas and the commitment to see them through. But I digress; my opinion of institutional funding is irrelevant.

What is important is that John and I walked out of that meeting with a crystal clear vision of how we wanted to proceed. That day, we vowed not to waste any more time and energy on fundraising, and instead focus on selling the service we knew had tremendous value to the groups currently using it. I am proud to say that since that time, we have made great progress. We are now celebrating our fourth consecutive month of making more money than we are spending... and we are doing it on our terms!

Advice for others:

Don't be suckered into believing you have to seek outside funding to start a successful business. Admittedly, there are some circumstances in which a company can simply not get off the group with some initial funding from public or private institutions. But for the most part, you can secure the resources you need to see your dream come to fruition without loosing ownership in your company and/or selling your soul... so long as your product or service has real value.

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