Growthink Blog

Educating Angels & What That Means for Entrepreneurs


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A few months back, a unique conference called "AngelConf" took place in Silicon Valley. The conference was organized for angel investors and its goal was to educate angel investors on how to invest in startups.

Key questions that the event addressed were:

  • How much are you supposed to invest?

  • What legal agreements do you need?

  • Where do you find startups to invest in?

  • How do you pick winners?

It was this last question that conference organizer Paul Graham from YCombinator agreed was the most important.

Graham's first point on this topic is that angel investors should pick startups that "make things that people want." Seems simple enough. However, Graham went on to say that angels should not invest in things that are already wildly popular. "By then it's too late for angels. VCs will already be onto them. As an angel, you have to pick startups before they've got a hit-either because they've made something great but users don't realize it yet, like Google early on, or because they're still an iteration or two away from the big hit, like Paypal when they were making software for transferring money between PDAs."

As such, angel investors need to be able to predict future market sizes (not just identify markets that are already doing well).

Graham's second point on this topic is that angel investors need to pick founders who are winners. On this point, he said the following:

"What makes a good founder? If there were a word that meant the opposite of hapless, that would be the one. Bad founders seem hapless. They may be smart, or not, but somehow events overwhelm them and they get discouraged and give up. Good founders make things happen the way they want. Which is not to say they force things to happen in a predefined way. Good founders have a healthy respect for reality. But they are relentlessly resourceful. That's the closest I can get to the opposite of hapless. You want to fund people who are relentlessly resourceful."    

Now, what this means to you as the entrepreneur is that this is how you will be judged by many angel investors. They will judge the future potential of your business concept and they will judge the potential of you and/or your management team.

With regards to the potential of your business concept, you must convince them that your market is poised for growth, and in doing so, you MUST cite multiple research and statistical points that confirm your views (I can't reiterate enough how critical great market research is).

With regards to the quality of you, the founder, and/or your management team, you need to show the investor, via past performance and ALL current interaction between you and the investor that you are a winner. You need to show them that you make things happen. Here are some examples of how can you accomplish this:

  • Tell them a current business objective and come back to them two weeks later and show them you have achieved it.

  • Find some way you can help them (e.g., introducing them to a business contact of yours that could help them) and execute on it right away.

  • Ask them about questions they have about your opportunity and/or market and come back to them within 24 hours with great research and answers to their questions.

These smaller, short-term accomplishments which show investors that you can execute and that you are clearly not 'hapless' will massively improve your chances of getting them to invest in you.


Breakthrough Business Idea Generator


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I want to tell you about a technique I picked up, that I can directly attribute to millions of dollars of revenues that I have generated over the years. But, even so, I'm far from mastering it.

The technique is a brainstorming technique called Assumption Reversal. It is incredibly powerful. It's the technique that has been responsible for, among many others, the ATM machine and Henry Ford's development of an assembly line which revolutionized manufacturing.

The Assumption Reversal brainstorming technique allows you to look at things differently and triggers new, creative ideas. It can be used to develop new business ideas and new product ideas, and for you to overcome virtually any challenge you face, from marketing obstacles to staffing difficulties and more.

I have put together a brief video that walks you through the four steps of the Assumption Reversal brainstorming technique and gives you a real-world example. I think you'll get much more from the video than just reading about it.

Mastering this technique could revolutionize you and your business. Check out the video below:


Exclusive Report: How to Quickly, Easily & Expertly Conduct Zero-Cost Market Research For Your Business


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I started my career in market research. At one point, I was pretty immersed in it. In fact, articles I wrote were published in Quirk's Marketing Research Review and I was a member of SCIP, the Society of Competitive Intelligence Professionals.

Having helped start and grow hundreds of companies since then, I can definitely say that my market research background has been a HUGE asset.

Every successful venture I have launched or help launch leveraged opportunities and strategies based on the industry, customer and competitor research we conducted.

I have also used market research time and time again to find investors and joint venture partners for businesses.

Since market research is so critical to businesses, and since the Internet presents such a goldmine of research for those who know who to find it, I decided to put together a report on how to quickly and expertly conduct market research online.

Some of the report is methodologies I use and other parts include my most prized bookmarks….those “go to” research sites that I visit each time an important research question or project comes out.

Want to learn how you can conduct market research for free instead of paying thousands of dollars to market research firms? Well, I put together a brief video to show you how:



I'm excited to get this report in the hands of as many entrepreneurs and business owners as possible, because I know the value effective and efficient market research has had on my business endeavors.  The report is currently free for current Growthink University members, so if you're a member, you are in luck! Just go to the download center and pick up your copy.

For those of you who aren't members of Growthink University, I would like to make a special offer available to you.  Because I'm in a celebratory mood, (this month is my wife’s birthday) I would like to offer this promotion to those interested in obtaining a copy:

As my wife would never allow me to post her age on my blog, what I have done is incorporate her age into this promotion.  For the next few days, I'm offering this market research report for one CENT for each year of my wife’s age.

As a bonus with your purchase, I’ll also include 30-day access to Growthink University so you can see the wealth of capital raising, business planning information we've assembled for entrepreneurs and business owners just like you. You’ll also gain access to all the Growthink University bonuses like our Ultimate Business Plan Template, special reports, VC Directory and Angel Investor Group Directory.

To order the market research report (and to find out exactly how old my wife is :)),follow this link:
https://www.growthinkuniversity.com/public/268.cfm

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Jay Turo

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