Watch my video review of the book below:
Several months ago, I came across YouNoodle, a website which offers tools and a platform to help startup companies succeed. What I was initially drawn to was their Startup Predictor tool. The idea of a tool that could help predict the success, or lack thereof, of a new company really intrigued me.
So, I contacted Kirill Makharinsky, one of YouNoodle's co-founders, to learn more. Kirill was gracious enough to do the interview and provided tons of valuable information.
I started by asking Kirill about the Startup Predictor, and specifically about what are the key indicators that a new business will be successful.
Kirill started by explaining that they created the startup predictor after looking at rich data on approximately 3,000 companies. From this data, they determined patterns between initial conditions (particularly in terms of the team and what their intentions were) and the end result.
The results found really strong indicators that the following three factors are key indicators of a venture's future success:
1. The quality of the team in terms their experience and accomplishments, and how well the team members know each other.
2. The amount of commitment the team has in terms of their opportunity cost - specifically how much they are giving up to be in the venture (e.g., leaving a steady, high-paying job) and how much skin they have in the game (e.g., how much of their personal funds have they committed).
3. Having advisors. YouNoodle found that having the right advisors, even if they provide minimal amounts of time contributing to the business, strongly impact the future success of the business.
Kirill went on to discuss fundraising. He explained how allowing two advisors to take part in forming and modifying YouNoodle's business idea helped secure them as angel investors. He also gave a great case regarding why you should contact investors BEFORE you have a concrete business idea when raising funding.
Kirill also discussed why the quality of your business idea is over-rated, and provided a great answer to my question regarding the top 5 things entrepreneurs really need to know in order to be successful.
To listen to excerpts of this interview click the blue triangle on the player below.
To listen to the full interview and/or read the transcript, click here: http://www.growthinkuniversity.com/members/326.cfm
To visit YouNoodle, click here.
Over the past decade, I have written countless articles on how to raise capital. I have taught thousands of entrepreneurs how to create a great business plan, how to develop a strong financial model, and ways to devise a slide presentation that gets investors excited.
And then, I have written extensively about how to grow your company once you have raised capital. Discussing how to motivate your employees to maximize their effectiveness. And how to find partners that can take your business to the next level.
But there's one thing I haven't written about. One thing that I've totally neglected. And this one thing can increase your effectiveness at ALL of these activities - from raising capital to performing all the tasks needed to grow your successful business.
For this I apologize.
So what is this one thing?
The answer is public speaking, and your ability to communicate ideas to investors, partners, employees and others.
I realized that public speaking was the missing key when I recently reviewed a unique book called "The Power Presenter" by Jerry Weissman.
And, I might not have read the book if it had not received so much praise from venture capitalists. These VCs have relied on Weissman to prepare them to not only raise money for their own funds, but to teach their portfolio company CEOs so they could raise future funding and better grow their companies.
So, why are Weissman's teachings so important? Because, your ability to present effectively and be a great public speaker is critical to your ability to raise money for your business, attract and formalize relationships with key partners, and build a highly motivated team among other things.
And importantly, Weissman's research proves that the content of your presentations is less important than your body language (most important factor) and your voice (next most important factor).
Allow that to sink in for a minute.
What this means is that when you meet with a venture capitalist, angel investor or bank loan officer, your presentation skills are more important than the content of your presentation!
This fact is a bit bothersome to me.
Why? Because it means that an entrepreneur who has great public speaking skills but a poor investor presentation and business model has a superior chance of raising capital than an entrepreneur with a great investor presentation and business but poor communications skills.
But, rather than me pouting about this seemingly unfair reality, let me tell you some of Weissman's keys to making you a better public speaker and presenter.
First of all, to reiterate, the most important thing influencing your audience is visual (i.e., your body language), then vocal (your voice and speaking rhythm) and then verbal (the story you tell).
Secondly, when you present in front of a group, your natural "fight or flight" instincts kick in. Your adrenaline starts pumping and you often get anxious and fidgety. The way that you act as a result of this poorly impacts your audience's perception of you.
To decrease your anxiety, use the following techniques:
1. Practice, practice and practice some more. The more you practice your presentation, the more comfortable you will be when you give it.
2. Concentrate. Just like an elite athlete, you need to clear your mind before the presentation so you can fully concentrate on the task at hand.
Important side note: many years ago, I had the pleasure of introducing entrepreneur and author Harvey McKay at an event. Before he went on, I saw him with his head against the wall talking to himself. I thought it was absolutely bizarre. But he used that technique to focus his mind and pump himself up. The result - he had the audience in the palm of his hand the whole time. It was truly amazing.
3. Shift Your Focus from You to Them. If you give a presentation and your best friend happens to be in the room, chances are that after the presentation the first question you will ask your friend is "How did I do?"
It is this mentality of thinking about yourself that makes people nervous. Rather, focus on the audience. Look at them and think "how are they doing?" This will allow you to present more effectively.
4. Focus on specific people in the audience. Whether there are three prospective investors or business partners in the room, or you are speaking to a room of 50 or 500, you need to visually focus on one person at a time. That is, pick one person to start and complete your first main point. Then you should shift to different people for each key point you make during the presentation. This helps you concentrate better and make sure you are focusing on the audience rather than on yourself.
5. Practice your hand gestures. Hand gestures often positively engage an audience. But, making hand gestures in front of an audience often feels awkward and uncomfortable. You must practice using them with "warmer" audiences (e.g., your friends, co-workers and/or employees) until they become second nature.
Like it or not, your public speaking ability and presentation skills are more important than the content of your presentations. As such, successful entrepreneurs need to master these skills. Use these tips to improve your skills, and remember to really practice all your presentations before the actual event. As you know, in most cases, you only get one shot at key presentations.
Every day I hear pitches from entrepreneurs about the great new product or company they are launching (or want to launch).
But unfortunately, more often than not, their ideas aren't that exciting.
Now, if you have great access to capital and are absolutely amazing at execution, then a "regular" idea is fine. In those cases, you simply go out and raise capital, launch your company, and then out-perform your competitors.
But, entrepreneurs who can do this are few and far between.
For the rest of us, we need an edge. Something that's different. Better than what's out there.
What I'm talking about is the kind of business idea that you look at and say, "That's really cool."
Now, these types of ideas typically feed off the wants and needs of consumers. That is, the entrepreneurs who conceive them have considered the true needs of the customer and modified existing products to satisfy those needs.
Importantly, in most cases, the customer hasn't even recognized the unmet need. But when they see the product or service, they realize its advantages and buy it.
I came across a couple examples of such "cool" products recently. The first was a pair of Reef brand sandals which has a bottle opener nestled in its sole making it "a mandatory accessory for a night out with the boys."
The second is Panasonic's BF-104 flashlight which operates with any combination of D-cell, AA OR AAA batteries. How cool is that...as long as you have 3 batteries, regardless of the type of each, it works (rather than all the time we've all spent searching for that last D-cell battery).
Neither of these innovations required years in the lab. Rather, they were both the result of the entrepreneurial mind coming up with creative solutions to the needs of their customers. (Note that the fact that these two innovations came out of corporations, rather than individual entrepreneurs, is even more impressive to me).
So, how can you maximize your creativity to come up with better ideas for your business?
Recently I created this video (http://www.growthink.com/content/breakthrough-business-idea-generator) that discusses one of my favorite brainstorming techniques called Assumption Reversal.
We have been using Assumption Reversal much more internally and coming up with some really neat ideas. I encourage you to watch the video and use Assumption Reversal for your business.
Finally, not long ago, I had the honor of interviewing Michael Michalko. Michael is the author of the book Thinkertoys which is known as one of the best books on creativity of all time. In fact, I learned about Assumption Reversal from this book.
I will be releasing more of Michalko's best creativity techniques in the coming months. In the meantime, try out the Assumption Reversal technique and keep brainstorming to come up with even better ideas.
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: