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If you’re married and thinking about going into business for yourself, the very first thing you should sell is your spouse. No, I don’t mean auctioning your beloved to the highest bidder. I mean before you put it all on the line, pitch the idea to your husband or wife.

via www.bnet.com

A great article about the most important stakeholder in your entrepreneurial venture… your spouse.

My wife has often suggested (or threatened) to write a book about what it is like to be the spouse of an entrepreneur. Why? Because it is very hard.

We entrepreneurs often get so focused on our businesses and our goals that we forget to think about how our focus and drive affects the folks around us.

As the actual entrepreneurs, we have the latest and greatest info on how things are going with the business, and as you probably already know, the entrepreneur's life is a roller coaster.

Imagine if you didn't have the latest and greatest data. You would feel helpless to control a crucial part of your family's future. The roller coaster would be magnified big time.

There is no more important stakeholder in your venture than your spouse, and you need to recognize that. In fact, if you are an investor in a startup, you need to recognize this fact too. When negotiating with an entrepreneur, you are often negotiating with someone not at the table… the entrepreneur's spouse.

Great article.

There is an old parable about the concept of commitment when it comes to breakfast. The story goes that when looking at a plate of the traditional fare of ham and eggs, it's obvious that the chicken is an interested party, but the pig is truly committed.

via bostonvcblog.typepad.com

A thoughtful article regarding what investors like to see in their entrepreneurs. I completely agree. Well done.

Business models are developed
by visualizing all of the "working parts" that make up a business.  A traditional business plan, on the other
hand, is most often a formal, written document that provides details about how
an entrepreneur intends the business to operate. 

Learning to develop a sound
business model helps ensure that everything that is critical to the success of
the business is in place and working in harmony. 

Developing the business model
depends fundamentally on engaging real customers very early in the creation of
the business so we have a better chance of offering what the market really
wants. 

One of the biggest benefits I
have seen from using business modeling over writing a traditional business plan
is that it allows for adaptation.  We use
what we learn from the very beginning of the start-up to make changes in our
business model as we uncover who our customers really are, what they really
want, and how best to put everything in place to ensure that we deliver what we
promise to them.

This process is known as
"pivoting" the business model. 

via www.drjeffcornwall.com

At some point, every young business comes to a crossroad. Perhaps the entrepreneur lacks the funding to take their idea any further. Or, maybe the business owner is good at certain aspects of running the business—such as wooing new clients and identifying areas of potential growth—but needs some assistance with budgeting and setting priorities if they want to expand.

How does a business owner know when is it time to bring in an investor?

For Paul Mann, the founder and CEO of Fetch! Pet Care, a national dog walking and pet services franchise based in Walnut Creek, Calif., the moment was when he realized his "teenager" of a business would need help in becoming an "adult" as the number of franchised units grew from 33 from 200 from 2006 to 2008.

"The business, like many in our situation, had come to a point where it had hit a wall," he said.  "We needed help in getting over the hurdle to take it to the next stage."

"It really is a smart business owner who can recognize that they need a partner to help them take advantage of a new opportunity for growth," said Harry Loyle, managing director for Cybeck Capital Partners, a Dayton, Ohio-based private equity investment

via www.businessnewsdaily.com

Imagine trying to convince a Yankees star pitcher to join a new, unproven Major League Baseball franchise. An impossible task? Not necessarily. Corey Reese, co-founder and CEO of Ness Computing, took on the tech-world equivalent of the challenge–and succeeded.

Reese wanted Apple engineer Scott Goodson, a member of the team that developed the iOS platform for the iPhone and the iPad, to decamp from Apple and join Ness as director of engineering. It was 11 months before Reese got a yes out of Goodson. What did it take?

via www.entrepreneur.com

Terrific article about one of the most important aspects of building a great startup… recruiting superstars to the team!

The venture capital industry’s online talent show has a new entrant, with Boulder, Colo.-based Foundry Group channeling the vocal and aggressive facial hair styling of ‘90s R&B group Color Me Badd in a music video that spoof’s Saturday Night Live’s Digital Short segment.

The partners of Foundry Group: From left, Brad Feld, Ryan McIntyre, Seth Levine and Jason Mendelson

It almost begs for an SNL spoof of our own: REALLY!?! with Venture Capital Dispatch. But, we’ll leave the comedy to the venture capitalists.

The video was clearly meant to publicize a new book from partners Brad Feld and Jason Mendelson titled “Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist.” But the spoof–which Feld jokes in a press release is “an important piece of American film making”–also takes some humorous jabs at the venture capital industry.

For example, the song rhymes “I’m a VC” with “I meet over Sushi.” There’s also talk of khakis and climbing “under the term sheets.”  And then there’s the line, “’Cause I’m a VC, I’m a VC/Can’t take a leak without people who pitch me.” It’s worth noting that particular scene features a journalist pitching a venture firm to Feld as he stands at a urinal.

[youtube http://www.youtube.com/watch?v=SKArupEBE6Y]

via blogs.wsj.com

Has the difficult economy of the last few years forced you to re-think your plans for selling your business?  Probably. 

Should you wait for a full-blown economic recovery before seriously considering selling your business?  Not necessarily. 

Is there a mechanism that can help bridge the gap between the purchase price you were hoping to receive for your business and the lower purchase price you are likely to receive?  Absolutely!

An earnout can help you bridge the gap between a buyer's concerns about your business and asking price, on the one hand, and your own certainty about the future performance of your business, on the other.

So, how does it work?  An earnout is a contractual obligation that provides a seller with a higher purchase price – over a designated time period after the closing – provided the seller achieves certain agreed upon targets.  In other words, an earnout can enable you to achieve a higher price on the sale of your business because the final purchase price is based, to an extent agreed by the parties, on the future performance of your business.  Properly designed, an earnout will cause a buyer to pay a higher purchase price at a level the buyer is comfortable paying and at performance levels the seller believes are reasonably attainable.

via vcexperts.com

Fenwick & West LLP, a national law firm that
provides comprehensive legal services to technology and life sciences
clients of national and international prominence, recently put out
their Q2 2011 Bay Area Venture Deal Terms report.
VC Experts' coverage of that report can be found at Q2 2011 Bay Area Venture Deal Terms.
In light of this, we have provided an early look at some of the
analysis that we have compiled thus far covering areas outside of Silicon
Valley for Q2 2011. Specific company terms & valuations are available to subscribers of VC Experts Valuation & Deal Term database. In this report, you will see some
consistencies in terms with both areas, and also some differences.

via vcexperts.com

Angel investors can provide you not only with the money to take your small business to the next level, but also real-world experience, advice and a cache of industry connections. But are you giving investors the information they need to continue the conversation and open their wallets?

Since your first impression is crucial when approaching investors, here's a look at some of the must-haves for pitching your business:

via www.entrepreneur.com

California Governor Jerry Brown, who has the rare distinction of having twice followed former actors into office, recently explained his job this way:

“A lot of this is theater. How do you communicate to 38 million people? … [I]t’s gesture, symbol, the narrative, the drama. Who’s the protagonist? Who’s the antagonist?"

What can the world of acting teach us about leadership? If you accept the fact that engaging and motivating people is a critical skill for leaders, then the performing arts is an excellent place to look for guidance.

After all, film is a $32 billion business worldwide. Television keeps the average American glued to the couch for 35 hours a week. And live theater draws legions of passionate fans. They must be doing something right.

Here are five rules from the stage and screen that will help you lead more effectively by communicating more persuasively.

via www.businessinsider.com